Contents

Letter to Shareholders 2

Highlights 5

Board of Directors 6

Ten years at a Glance 8

Board’s Report 10

Management Discussion and Analysis Report 27

Standalone Financial Statements 35

Independent Auditors’ Report 82

Comments of C&AG 92

Secretarial Audit Report 93

Corporate Governance Report 95

Corporate Governance Certificate 102

Business Responsibility Report 103

Consolidated Financial Statements 109

Independent Auditors' Report on Consolidated 161

Financial Statements

Comments of C&AG on Consolidated 168

Financial Statements

Statement containing salient features of the Financial 169

Statement of Subsidiaries (Form AOC-1)

Extract of Annual Return (MGT-9) 171

Particulars of Loans, Guarantees or Investments under Section 186 182

Conservation of Energy, Technology Absorption, etc. 183

Report on Corporate Social Responsibility 190

Principal Executives 192

Notice 193

Proxy Form 199

 Letter to
Shareholders
Dear Shareholders,
It is my privilege to apprise you with the achievements of your With the modernisation and expansion plan on the verge of
Company during the Financial Year 2018-19. The year marked completion, the modernised and expanded Bhilai Steel Plant
the return of your Company into black. It was a year of (BSP) was dedicated to the Nation by the Hon'ble Prime Minister
noticeable improvement in the performance, a year in which on 14th June, 2018. The new Steel Melting Shop (SMS-III) at
the persistent efforts of your Company to stage the turnaround, BSP was put into operation along with 2 convertors, 3 casters,
finally culminated into profits after posting losses for the past 2 Ladle Furnace and 1 RH Degasser. The hot trial for Bar Line
3 years consecutively. of Bar & Rod Mill (BRM) at BSP also commenced during
December'18 while the trial rolling of Wire Rod from Rod Line
Your Company achieved sales turnover of `66,267 crore during of BRM started in February'19. At Bokaro Steel Plant (BSL),
the Financial Year 2018-19, which is higher by 16% over the hot trials of Hot Dip Galvanising Line at Cold Rolling Mill-III
previous year. The position of loss in the previous year were started in June'18. The upgraded Blast Furnace-1 (Parvati)
2017-18 at `(-) 482 crore was reversed and your Company at Rourkela Steel Plant (RSP) was blown-in on in May'18 and
posted a Profit after Tax (PAT) on standalone basis at `2,179 also dedicated to the Nation on 11th June, 2018 by the Hon'ble
crore in FY19. The consolidated profit after tax of the Company Union Minister of Steel.
stood at `2,349 crore for FY19 as against `(-) 281 crore in
FY18. The persistent strategic approach to improve operational A number of new initiatives were taken during the year resulting
profitability assisted SAIL to improve the EBITDA in FY19 to in improvement in productivity and efficiency across all Plants.
`10,283 crore, almost doubling over the performance of 20 new products/grades were developed during the year with
`5,184 crore in FY18. noticeable amongst them being NPB-750 at IISCO Steel Plant
(ISP) and LHB Wheels at Durgapur Steel Plant (DSP). One of
The improvement in financial performance was based upon
the most important products in the basket of SAIL viz., Rails
the improved operational performance indicated by increase
(for supplies to Indian Railways) witnessed the highest ever
in Saleable Steel production (7%), increase in Net Sales
production at 9.85 lakh tonnes (vis-à-vis 9.03 lakh tonnes in
Realisation (NSR) for 5 ISPs (16%), higher share of Concast
FY 18) during the Financial Year 2018-19 with commercial
production, improved product-mix, reduction in Coke Rate,
production from new Universal Rail Mill (URM) showcasing a
reduction in specific wage bill, etc. However, the same has
83% growth year on year. The total despatches of UTS-90
been partially offset due to increase in imported coal rate,
Rails consisted of record long rail dispatch of 4.48 lakh tonnes.
purchased power rate, higher expenditure on repairs &
At DSP, the new mill, MSM saw the production double to 1.71
maintenance, stores & spares, security expenses, loss on
lakh tonnes from 0.99 lakh tonnes in FY18. This aided the
account of foreign exchange variations, higher imported coal
Plant in achieving its best ever performance for overall Saleable
in blend, provisioning towards various mining related issues,
Steel production at 2.13 MT. At RSP, the New Plate Mill
provision for entry tax in the State of UP following the Court
continued the stellar performance and the new benchmark by
Order and increase in interest and depreciation costs.
producing 8.61 lakh tonnes during the FY19. Supported by
On the production front, Financial Year 2018-19 saw number the performance at other facilities, the Plant overhauled its
of new records being created. The production improved previous performance and recorded the best ever Saleable
substantially with the ramping up of new facilities. Your Steel production at 3.34 MT. Bokaro Steel Plant (BSL) recorded
Company achieved its highest ever production of Hot Metal of best ever performance in production of Cast Slab, HR Coil
17.5 MT, Crude Steel of 16.3 MT and Saleable Steel of 15.1 and CR Coil at 3.40 MT, 3.69 MT and 1.14 MT respectively.
MT. It also clocked an all-time best performance of Continuous- ISP apart from development of NPB 750, started closed casting
Cast (CC) Steel production of 13.8 MT with a growth of 8% through monotube route. Other initiatives at ISP ensured its
over previous best of 12.8 MT achieved in 2017-18. rapid progress towards stabilization and the Plant is also

2
expected to contribute a decent share in the overall profitability to promote Parallel Flange Sections being manufactured by
of your Company in the years to come. DSP and ISP. Further, the Company had made preparation for
launch of its "SeQR" brand to promote the TMT Bars being
During the year, your Company's total requirement of iron ore manufactured by ISP based on its higher safety related
was met from captive sources. SAIL's captive mines produced properties and features against earthquake. The brand has
28.35 million tonnes (MT) of iron ore. finally been launched in the FY 2019-20. The initiative "Gaon
SAIL steel has been a part of every major national infrastructure Ki Ore" saw organisation of more than 150 workshops aimed
project. Your Company proudly associates itself with India's at enhancing per capita usage of steel in rural construction
sector.
Defence, Railways, Infrastructure, Space, Power,
Manufacturing, etc. Living up to its label of being the most During 2018-19, your Company achieved its best ever sales
trusted and valued partner in Nation's development, SAIL volume of 14.12 million tonnes (MT) despite the second half
supplied steel to projects of national importance like Statue of of the year witnessing a strong undercurrent in the market for
Unity (tallest statue in the World), Bogibeel Bridge (longest steel products. Continuing to strengthening its presence in
rail-cum-road bridge in India), Kishanganga and Tuirial Hydro international markets, SAIL exported 0.76 MT of steel, a growth
Projects, Eastern and Western Peripheral Expressways, of 9% over CPLY. With the emphasis on increasing sales of
Lucknow-Agra Expressway, etc. in FY'19, thus giving a fillip to special quality steel, the proportion of these products was
India's growth story under the ambit of National Steel Policy increased to 42% of the overall sales. In this regard, supplies
2017 as well as 'Make in India' movement. Aimed at import from the Cold Rolling Mill #3 at Bokaro have been steadily
substitution, new grades like Quenched & Tempered Plates increasing to consumers in the highly demanding, high value
(SAIL WR 400, ASTM 517 F, S690 QL), High Tensile Parallel auto segment, besides new customers in Power sector.
Flanged Beams, Medium Carbon Wire Rods (HC 52B,SAE Supplies of WRC in special grades has commenced from the
15B21), etc. were produced and supplied for the first time. new mill at IISCO Steel Plant. With focus on meeting the
Your Company has also supplied steel for various defence requirement of small consumers, 0.7MT of steel was sold
projects including indigenously built Anti-Submarine Warfare through the retail channel. With the aim of improving the
(ASW), Stealth Corvette INS-Kiltan and the first indigenous as product-mix to meet the requirement of local markets, SAIL
well as biggest artillery gun 'Dhanush' of the Indian Army. has inaugurated new Steel Processing Units at Bettiah and
Jagdishpur.
On the marketing front, SAIL launched diverse initiatives to
increase its market presence in different areas by targeting Your Company has been taking all appropriate measures to
defined market segments. The Company introduced strategic restore and rehabilitate the degraded eco-system, to maintain
processes like Sales Force Effectiveness (SFE) Programme and enhance bio-diversity. This include ecological restoration
and Key Accounts Management (KAM) Process during the year. of mined out areas, fresh plantation, bio-sequestration of CO2,
The branding initiatives saw the launch of a new brand "NEX" enhancing utilization of wastes through application of 4Rs

Steel Authority of India Limited supplied steel for indigenously built Stealth Corvette INS-Kiltan.

3
(Reduction, Reuse, Recycling and Recovery), environment second half of the year. This pickup is supported by significant
friendly disposal of Poly Chlorinated Bi-Phenyls, utilization of policy accommodation by major economies. With
renewable energy sources, installation of bio-digesters for improvements expected in the second half of 2019, global
processing of wastes, etc. More than 20.5 million saplings economic growth in 2020 is projected to return to 3.6 percent.
have been planted across SAIL Plants and Mines till date since Beyond 2020 growth will stabilize at around 3½ percent,
inception. Giving special thrust for plantation, more than 4.42 bolstered mainly by growth in China and India and their
lakhs of saplings have been planted during 2018-19. increasing weights in world income.

Your Company is committed to the highest standards of Thus, the Indian Economy is expected to continue to do
Corporate Governance which are reinforced in its vision and reasonably well in the long run which augurs well for the Steel
credos. The philosophy of the Company in relation to Corporate Industry, as the two enjoy a strong correlation. Similar
Governance is to ensure transparency, disclosures and sentiments have been echoed in the Short Range Outlook
reporting that confirms fully to laws, regulations and guidelines published by World Steel Association (WSA) in April'19. It has
including the Companies Act, 2013, SEBI (LODR) Regulations, been forecast that Global steel demand will reach 1,735 Million
2015 and DPE guidelines, and to promote ethical conduct Tonnes (MT) in 2019, an increase of 1.3% over 2018. It is
throughout the Organization, with the primary objective of further forecast that Global steel demand will grow by another
enhancing shareholders value, while being a responsible 1% to reach 1,752 MT in 2020. WSA has further added that
corporate citizen. SAIL has formulated policies which ensure the Indian economy is expected to achieve faster growth
transparency, accountability, disclosures and reporting. Ethical starting in the second half of 2019 after the election. While the
conduct throughout the Organization is promoted with the fiscal deficit might weigh on public investment to an extent,
primary objective of enhancing shareholders value. SAIL's the wide range of continuing infrastructure projects is likely to
efforts as a responsible corporate citizen and partner in Nation support growth in steel demand above 7% in both 2019 and
Building have been recognized in the form of awards and 2020.
accolades by several forums.
India having already overtaken Japan as World's second largest
Your Company believes that building trust will enhance its steel producing Nation in FY 18, is all likely to overtake US as
reputation and boost the confidence of its investors & the second largest steel consuming Nation in the world in 2019.
stakeholders. In line with this, SAIL has been proactively and The 300 MTPA steel production capacity for India by 2030 as
regularly sharing key information with all stakeholders through envisioned in "National Steel Policy 2017" is commensurate
use of different communication channels. with this growth projection. SAIL has also started its plans for
increasing its capacity commensurate with the National growth.
Your Company has been taking a number of strategic initiatives
for its turnaround, growth and sustainance. SAIL had launched At the end, I take this opportunity to thank all our stakeholders
the Company-wide turnaround program 'SAIL Uday' in who have contributed internally and externally in the improved
2016-17 which laid the roadmap for improvement in the areas performance of the Company. I must specifically thank our
of Raw Materials, Operations, Sales & Marketing, Supply Chain valued customers, trusted suppliers, the Central and State
& Logistics, Personnel and Human Resource has been Governments and our talented employees, who have always
developed and deployed culminating in the performance during stood by the Company and contributed in the progress of SAIL.
FY 19. Other than this, your Company has adopted a multi- I must especially thank our shareholders including the Central
pronged approach that includes organic growth, brown-field Government for the faith they have reposed in the Company
projects, technology leadership through strategic alliances, when it has been unable to pay the dividend owning to the
ensuring raw material security by developing new mines, continued losses. As the Company has started its ascent to
diversifying in allied areas, etc. Some of the strategic initiatives the top, it is time we keep our investors in good spirits.
include MoUs for setting up of Pellet Plants, manufacturing of Accordingly, the Board of Directors has proposed a dividend
capital goods in the Country, setting up of hydro power plant, of 5% for the year 2018-19. I hope this will further strengthen
closure of in-operative and non-performing Joint Ventures and the faith of the stakeholders in us and I look forward to the
Subsidiary Companies. continued support and unflinching trust.

Looking at the future, IMF has projected the world growth

outlook in April'19 for the year 2019 and 2020 at 3.3 percent
and 3.6 percent respectively. Although a 3.3 percent global
expansion is still reasonable, the outlook for many countries is
very challenging due to considerable uncertainties in the short
term especially for the advanced economies. While 2019 Place: New Delhi (Anil Kumar Chaudhary)
started out on a weak footing, a pickup is expected in the Dated: 31st July, 2019 Chairman

4
 Highlights
• SAIL bounced back to profits in FY 2018-19 with Net Profit after Tax of  SAIL supplied around 60,000 tonnes of Steel for the 111-km-long Jiribam-Tupul-
` 2,179 crore, after being in red for three consecutive years. Imphal new broad gauge railway project for the world's tallest girder rail bridge
and India's longest tunnel.
• Hon'ble Prime Minister Shri Narendra Modi dedicated SAIL's Modernized and Expanded
Bhilai Steel Plant to the nation in June, 2018.  43000 tonnes (approx.) of steel was supplied for the construction of the 135
Km long Eastern Peripheral Highway, inaugurated by Hon'ble Prime Minister,
• Launched a new brand of TMT bars named 'SAIL SeQR' which is safer and has higher Shri Narendra Modi in May, 2018.
strength and better ductility, providing enhanced safety to the Construction Sector.
• Towards a unique initiative of making the Country clean and beautiful, SAIL launched
• SAIL developed and supplied the first lot of Link-Hoffman-Busch(LHB) wheels to 'Smart Garbage Bins' made of SALEM Stainless Steel in South Delhi Municipal
Indian Railways for use in LHB coaches. These wheels are currently being imported Corporation.
and the new product in SAIL basket shall further the “Make-in-India” initiative.
• Under the Guidance of Ministry of Steel, SAIL associated with administration of district
• SAIL supplied an all time high volume of 9.45 Lakh tonne rails to Indian Railways in 'Nuh' in Haryana in a unique initiative under Corporate Social Responsibility for
2018-19, further augmenting its value-added product basket and continuing its quest supporting the "Menstrual Hygiene Management Program".
for participation in National infrastructure building. • SAIL's Steel Processing Unit situated at Bettiah in West Champaran, Bihar was
• In solidarity with the people affected by the severe cyclonic storm "Fani" that hit dedicated to the nation on 18th February, 2019 by the then Union Steel Minister,
Odisha in April/May 2019, SAIL supplied around 81,000 electric poles of special Chaudhary Birender Singh and Union Minister of Consumer Affairs, Food and Public
quality Wide Parallel Beam (WPB-160) to the Odisha Government on topmost priority. Distribution, Shri Ram Vilas Paswan. High quality steel tubes and pipes will be produced
SAIL Employees also contributed Rs.3 crore towards the relief work of cyclone 'Fani' by this Unit.
to Odisha Chief Minister's Relief Fund. SAIL's quick response was highly appreciated • SAIL's Steel Processing Unit situated at Jagdishpur in Uttar Pradesh was dedicated to
by the Central and State Government. the nation in April 2019 by the Hon'ble Prime Minister, Shri Narendra Modi. The Unit
will produce TMT rebars for catering to the expanding demand of infrastructure sector.
• As a partner in nation building, and in furtherance of the 'Make in India' initiative of the
Government of India: • In its maiden attempt, SAIL Hockey Academy, run by Rourkela Steel Plant (RSP),
won one of the oldest and prestigious Hockey Tournaments of the Country, the 115th
 SAIL supplied steel for India's first indigenous long range artillery gun 'Dhanush', All India Aga Khan Gold Cup Hockey Tournament-2018 held at Pune from 1st to 9th
which was inducted into the Indian Army in April, 2019, thereby establishing December 2018.
SAIL's commitment to fulfil every requirement for strengthening India's defence
systems. • SAIL awarded with the National Award for Excellence in Cost Management for First
place in the category 'Public-Manufacturing-Mega' by The Institute of Cost Accountants
 More than 50% Steel (35400 MT approx.) for the construction of Bogibeel Road- of India.
cum-Rail Bridge on the river Brahmaputra was supplied by SAIL.
• SAIL won more than 30% of the prestigious Vishwakarma Rashtriya Puraskar for the
 More than 50% Steel (12000MT approx.) was supplied for the world's tallest Year 2016. Out of the total 139 awardees, 48 awardees were from SAIL (Sep 2018).
statue (182 meters) - 'The Statue of Unity', which was dedicated to the nation • SAIL awarded with the "Golden Peacock Environment Management Award (GPEMA)"-
by Hon'ble Prime Minister Shri Narendra Modi on the 143rd Birth Anniversary of 2019.
independence movement leader, Sardar Vallabhbhai Patel.
• Bokaro Steel Plant of SAIL conferred with the National Water Award 2018 in Best
 The first consignment of Metro Railway Wheels for Kolkata Metro was despatched Industry for Industrial Water Conservation (Best Large scale Industry) category in
in June, 2018. Eastern Zone of India.

Shri Dharmendra Pradhan taking charge as Minister of Steel on 31.05.2019, in presence of Minister of State for Steel, Shri Faggan Singh Kulaste and Secretary Steel, Shri Binoy Kumar.

5
BOARD OF DIRECTORS (As on 09.07.2019)

Chairman Bankers
Shri Anil Kumar Chaudhary
Axis Bank Limited
Functional Directors Allahabad Bank
Bank of India
Projects & Business Planning with Additional Charge of Director (Finance) Bank of Baroda
Dr. G. Vishwakarma Bank of Maharashtra
Canara Bank
Commercial Dena Bank
Ms. Soma Mondal HDFC Bank Limited
ICICI Bank Limited
Personnel IDBI Bank limited
Shri Atul Srivastava IDFC Bank Limited
IndusInd Bank Limited
Technical
Indian Bank
Shri Harinand Rai Jammu & Kashmir Bank Limited
Raw Materials & Logistics Kotak Mahindra Bank Limited
Mizuho Bank Limited
Shri Vivek Gupta
Punjab National Bank
Government Directors Punjab & Sind Bank
RBL Bank Limited
Shri Saraswati Prasad State Bank of India
Special Secretary & Financial Advisor, Syndicate Bank
Ministry of Steel, Government of India United Bank of India
Yes Bank Limited
Shri Puneet Kansal
Joint Secretary, Ministry of Steel, Government of India Statutory Auditors
Independent Directors M/s. Singhi & Co.
Chartered Accountants
Prof. Ashok Gupta
M/s. Chatterjee & Co.
CA Parmod Bindal Chartered Accountants
Smt. Anshu Vaish M/s. V.K. Dhingra & Co.
Chartered Accountants
Dr. Samar Singh
M/s. A.K. Sabat & Co.
Shri Nilanjan Sanyal Chartered Accountants

CA Kartar Singh Chauhan Cost Auditors

M/s. R.J. Goel & Co.
Prof. Narendra Kumar Taneja
Cost Accountants
Shri Krishan Kumar Gupta M/s. Sanjay Gupta & Associates
Cost Accountants
M/s. Shome & Banerjee
Chief Executive Officers (Permanent Invitees) Cost Accountants
Bokaro Steel Plant
Shri P.K. Singh
Secretarial Auditor
Bhilai Steel Plant
M/s. Agarwal S. & Associates
Shri Anirban Dasgupta
Company Secretaries
Rourkela Steel Plant
Shri Deepak Chattaraj Registered Office
Durgapur Steel Plant & Alloy Steels Plant Ispat Bhawan, Lodi Road, New Delhi-110003
Shri A.V. Kamlakar Phone:24367481; Fax-24367015
Internet: www.sail.co.in
IISCO Steel Plant E.mail: [email protected]
Shri A.V. Kamlakar CIN: L27109DL1973GOI006454
Company Secretary
Shri M.B. Balakrishnan

6
7
 Ten Years at a Glance
FINANCIAL HIGHLIGHTS (` crore)
2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10

Gross sales 66267 58297 49180 43294 50627 51866 49350 50348 47041 43935
Net sales 66267 56893 43866 38471 45208 46189 43961 45654 42719 40551
Earnings before depreciation, interest and tax (EBIDTA) 10283 5184 672 (2204) 5586 5909 5621 7658 9030 11871
Depreciation 3385 3065 2680 2402 1773 1717 1403 1567 1486 1337
Interest & Finance charges 3155 2823 2528 2300 1454 968 748 678 475 402
Profit / (Loss) before exceptional items 3743 (703) (4536) (6906) 2359 2266 3470 5413 7069 -
Exceptional items : Gain / (Loss) (405) (56) (315) (101) - 959 (229) (262) 125 -
Profit / (Loss) before tax ( PBT ) 3338 (759) (4851) (7008) 2359 3225 3241 5151 7194 10132
Provision for tax / Income Tax refund and 1159 (277) (2018) (2986) 266 608 1070 1608 2289 3378
deferred tax asset ( - )
Profit / (Loss) after tax (PAT) 2179 (482) (2833) (4021) 2093 2616 2170 3543 4905 6754
Dividends - - - - 826 834 826 826 991 1363
Equity Capital 4131 4131 4131 4131 4131 4131 4131 4131 4130 4130
Reserves & Surplus (net of DRE) 34021 31583 31879 35065 39374 38536 36894 35680 32939 29186
Net Worth 38152 35714 36009 39196 43505 42666 41025 39811 37069 33317
(Equity Capital and Reserves & Surplus)
Total Loans 45170 45409 41396 35141 29898 25281 21597 16320 19375 16511
Net Fixed Assets 61359 58612 50285 45926 36169 26771 16777 17127 15059 13615
Capital work-in-progress 16014 18395 23275 24927 29196 33651 35891 28205 22226 14953
Current Assets (including short term deposits) 32249 29638 25545 24304 28482 26891 27616 28431 36544 39154
Current Liabilities & Provisions 23632 24068 21486 18992 16338 15212 13012 12225 12172 11073
Working Capital 8617 5570 4060 5312 12145 11679 14604 16206 24372 28081
(Current Assets less Current Liabilities)
Capital Employed 69976 64182 54345 51238 48314 38450 31381 32921 39431 41696
(Net Fixed Assets + Working Capital
Mkt price per share (in `) 53.75 70.20 61.20 43.00 68.35 71.40 62.35 94.05 170.00 252.55
(As at the end of the period)
Key Financial Ratios
EBIDTA to average capital employed (%) 15.3 8.7 1.3 (4.3) 12.9 16.9 17.5 21.0 21.7 31.1
PBT to Net Sales (%) 5.0 (1.3) (11.1) (18.2) 5.2 7.0 7.4 11.3 16.8 25.0
PBT to average capital employed (%) 5.0 (1.3) (9.2) (13.6) 5.4 8.4 10.1 14.2 17.3 26.6
Return on average net worth (%) 5.9 (1.3) (7.5) (9.7) 4.9 6.1 5.4 9.2 13.9 22.0
Net worth per share of ` 10 92.4 86.5 87.2 94.9 105.3 103.3 99.3 96.4 89.7 80.7
Earnings per share of ` 10 5.3 (1.2) (6.9) (9.7) 5.1 6.3 5.3 8.6 11.9 16.4
Price-earning ratio (times) 10.2 (60.2) (8.9) (4.4) 13.5 11.3 11.9 11.0 14.3 15.4
Dividend per share of ` 10 0.5* - - - 2.0 2.0 2.0 2.0 2.4 3.3
Effective dividend rate (%) - - - - 2.9 2.8 3.2 2.1 1.4 1.3
Debt - Equity (times) 1.2 1.3 1.1 0.9 0.7 0.6 0.5 0.4 0.5 0.5
Current ratio (times) 1.4 1.2 1.2 1.3 1.7 1.8 2.1 2.3 3.0 3.5
Capital employed to turnover ratio (times) 0.9 0.9 0.9 0.8 1.0 1.3 1.6 1.5 1.2 1.1
Working capital turnover ratio (times) 7.7 10.5 12.1 8.2 4.2 4.4 3.4 3.1 1.9 1.6
Interest coverage ratio ( times ) 1.8 0.58 (0.7) (1.9) 1.8 2.3 2.6 3.8 7.1 14.4
Dividend payout ratio (%) - - - - 39.4 31.9 38.1 23.3 20.2 20.2
*Subject to approval of the shareholders

PRODUCTION (Unit: '000T)

Item 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10

Hot Metal 17513 15982 15726 15721 15413 14447 14266 14116 14888 14505
Crude Steel 16266 15020 14496 14279 13908 13579 13417 13350 13761 13506
Pig Iron 480 270 495 642 634 223 214 106 261 323
Saleable Steel 15069 14074 13867 12381 12842 12880 12385 12400 12887 12632
- Semi Finished Steel 3169 2610 3170 3054 3007 2760 2422 2527 2394 2392
- Finished Steel 11900 11464 10697 9327 9835 10120 9962 9872 10493 10240

8
VALUE ADDED STATEMENT
(` crore)
For the year 2018-19 2017-18

Value of own production 69511 57636

Other Revenues 1145 70656 1059 58695
Less: Cost of Raw Materials 32291 26679
Stores and Spares 3504 2879
Power and Fuel 6053 5810
Excise Duty - 1404
Freight Outward 2611 2242
Other Operating Cost 7490 51948 5703 44716
Total Value Added 18708 13979
Establishment Cost 8830 8850
Financing Cost 3155 2823
Dividend Provision - -
Corporate Income Tax 1159 -277
Dividend Tax - -
Income Retained in Business
Depreciation 3385 3065
General Reserve - -
Bonds Redemption Reserve -347 367
Balance of Profit 2525 -849
Retained in Business 2179 5564 -482 2583
Total Value Applied 18708 13979

SHAREHOLDING PATTERN
(AS ON 31.03.2019)
Category Number of Number of % of Equity
Holders Equity Shares

GOVERNMENT OF INDIA 1 3097767449 75.00

FINANCIAL INSTITUTIONS(INS. COS.) 9 413794834 10.02
BANKS 31 75751320 1.83
MUTUAL FUNDS 26 125978984 3.05
FOREIGN PORTFOLIO INVESTORS 100 169385488 4.10
GLOBAL DEPOSITORY RECEIPTS 2 116435 0.00
COMPANIES 2034 60672027 1.47
(including Trusts & Clearing Members)
INDIVIDUALS 357649 185097025 4.48
(including NRI & Employees)
IEPF AUTHORITY 1 1961727 0.05

TOTAL 359853 4130525289 100.00

9
BOARD’S REPORT
To, Your Company continued its thrust on judicious fund management with timely
repayment of loans including interest, advance planning and action for future
The Members,
fund raising, etc. to meet our growth objectives. The Company had borrowings
Steel Authority of India Limited,
of `45,170 crore as on 31st March 2019 vis-à-vis `45,409 crore as on 31st
New Delhi
March 2018. The Company has fully hedged the foreign currency risk on
The Board of Directors has the pleasure of presenting the 47th Annual Report Buyers' Credit and External Commercial Borrowings. The debt equity ratio of
of Steel Authority of India Limited (SAIL, the Company) together with the Audited the Company as on 31st March, 2019 decreased to 1.18:1 from 1.27:1 as on
Standalone and Consolidated Financial Statements for the Financial Year ended 31st March 2018 primarily due to increase in net worth during the year. The
31st March, 2019. net worth of the Company increased to `38,152 crore as on 31st March 2019
from `35,714 crore as on 31st March 2018.
A. FINANCIAL REVIEW
The Board of Directors has recommended a dividend of ` 0.50 per Equity
Your Company achieved sales turnover of `66,267 crore during the Financial Share of face value of ` 10/- each for the Financial Year 2018-19, subject to
Year 2018-19, which is higher by 16% as compared to corresponding period approval of shareholders.
of last year (CPLY) mainly due to increase in Net Sales Realisation (NSR) of
Saleable Steel of 5 Integrated Steel Plants by about 16%. During the Financial M/s. CARE Ratings, M/s India Ratings and M/s Brickwork Ratings, RBI
Year 2018-19, the Profit before Tax and Profit after Tax at `3,338 crore and approved Credit Rating Agencies, assigned 'CARE AA- Outlook: Stable', 'India
`2,179 crore respectively reflect substantially better and higher performance Ratings AA- Outlook: Stable' and 'BWR AA Outlook: Negative' ratings
over CPLY. respectively for SAIL's long-term borrowing programme.

The profit of your Company during the Financial Year 2018-19 has improved B. OPERATIONS REVIEW
on account of higher Saleable Steel production, increase in Net Sales Realisation
of Saleable Steel of 5 Integrated Steel Plants, sales of secondary products, Production Review
lower voluntary retirement compensation, lower Coke Rate, etc. However, the Financial Year 2018-19 was another remarkable year in the performance of
same has been partially offset by increased imported coking coal rate, the Company, even with greater challenges like stiff competition from domestic
purchased power rate, increase in repairs & maintenance expenditure, stores market and certain operational setbacks. However, SAIL Plants, continued
& spares expenditure, security expenses, royalty rates on Iron Ore, foreign with their journey of relentless efforts for improvement in production, product-
exchange loss, higher imported coal in blend, higher usage of Iron Ore, mix and efficiency parameters.
provision for differential royalty on Bolani and Barsua Iron Ore Mines as well
as Entry Tax in UP State consequent to the Order of Hon'ble Allahabad High During the sixtieth year of production, your Company recorded its highest
Court, and incremental interest expenses & depreciation charges due to ever annual production of Hot Metal of 17.5 million tonnes (MT), Crude Steel
capitalisation of new facilities. of 16.3 MT and Saleable Steel at 15.1 MT, with a growth of 10%, 8 % and 7%,

Hon'ble Prime Minister, Shri Narendra Modi at SAIL's Bhilai Steel Plant.

10
SAIL's Durgapur Steel Plant supplied the first consignment of Linke Hofmann Busch (LHB) wheels to Indian Railways for improved safety and higher speed.

respectively with respect to 2017-18, (CPLY). Finished steel production at MT, 2.22 MT and 2.13 MT respectively. Under the development of new wheels,
11.9 MT was achieved with a growth of 4% over CPLY. DSP supplied wheels for Kolkata Metro Railways and NTPC. Further, 30 nos.
of LHB wheels, which are safe & light, were supplied to Indian Railways. In
SAIL, in its endeavor to become energy and cost efficient, increased production
addition to this, various new initiatives were undertaken to improve productivity
of Crude Steel through Continuous Casting route and achieved highest ever
and efficiency of the process. Profile measurement device was installed at
Crude Steel production through Continuous Casting route at 13.8 MT in the
Medium Structural Mill (MSM) for preventing generation of defectives and
Financial Year 2018-19 with a growth of 8% over Previous Year. A large number
reduce downtime. Use of cost effective dolomite based refractory in steel
of innovations are being carried out in the Plants for process improvement
ladles and use of CC Rounds for production of BG Coach/ EMU/ LHB wheels
and cost competitiveness.
has been introduced.
The Research & Development Centre of SAIL, provided innovative technological
At Rourkela Steel Plant (RSP), the new 'state of the art' Plate Mill achieved
inputs to different Plants/Units of the Company, with special emphasis on
highest ever annual production of 0.861 MT. Hot Metal, Crude Steel and Saleable
productivity and quality improvement, product development and
Steel production for the Financial Year 2018-19 recorded the highest annual
commercialization, energy conservation and automation.
production at 3.837 MT, 3.660 MT and 3.335 MT respectively.
At Bhilai Steel Plant(BSP), the 'state of the art' Blast Furnace-8, Mahamaya,
Bokaro Steel Plant(BSL) recorded best annual figures of cast slab production
achieved a landmark of 1 MT Hot Metal production on 18th October, 2018 in
of 3.394 MT, HR Coils at 3.686 MT and CR Saleable at 1.142 MT.
record 8 months and 17 days after blowing in on 2nd February, 2018, fastest
in SAIL. BF-8 production has been ramped up to a level of 7000 tons per day. At IISCO Steel Plant (ISP) various new sections were developed like, IPE/NPB
The improvement in production from new Universal Rail Mill (URM), has 750 Narrow Parallel Flange Beams (5 variants), HE / WPB 240 Wide Parallel
enabled a growth in UTS-90 rails production at 9.85 lakh ton by 9.1% compared Flange Beams (4 variants), IPE 600V Narrow Parallel Flange Beams (Sec. wt.
to 9.03 lakh tonne in the previous year, coupled with record loading of long 184 Kg/m), 6.5 mm WRC, 36 mm TMT Bars (IS 1786 Fe 500D). ISP
rails at 4.42 lakh tonne in 2018-19 over 3.16 lakh tonne in 2017-18, registering successfully rolled out NPB 750 in its Universal Section Mill and added this
a growth of 40%. In SMS-III, the first heat was tapped from Converter-2 on section to its product basket during the Financial Year 2018-19, thus becoming
27th November, 2018, Caster CV1 for blooms was started on 28th September, the only Plant in the Country to roll this section.
2018 and clearance from Research Designs and Standards Organisation for
Your Company renewed various initiatives to reduce environmental footprint
making Rail Bloom Heats was obtained on 18th February, 2019. At SMS-II,
and enhance operational efficiency and this has led to a significant improvement
Cast blooms production of 13.89 lakh tonne is the best ever yearly performance
in environmental parameters as well as techno-economic efficiency. This
against the previous best of 12.16 lakh tonne in 2017-18, with a growth of
enabled us to produce greener and more environmental friendly steel than
14.9%. The trial rolling at the new 'state of the art' Bar and Rod Mill was
ever before. SAIL recorded the best ever coke rate at 453 kg/thm. This was
started on 28th December, 2018.
achieved as a result of higher volume of Hot Metal produced through new
Durgapur Steel Plant(DSP) achieved the best ever annual Hot Metal, Crude 'state of art' large volume Blast Furnaces (38% of total Hot Metal, up by 29%
Steel and Saleable Steel production during the Financial Year 2018-19 at 2.52 over CPLY).

11
For the past sixty years, your Company's steel has significantly contributed to SAIL Power Company Limited (NSPCL), a Joint Venture Company of SAIL &
almost all the key projects of the Country including Railways, Defence, Hydro- NTPC Ltd.
electric, Space Programs, Infrastructure projects, and has partnered with the
Besides above, optimization of electricity consumption in various steel making
Government in its initiatives like 'Make in India', 'Digital India' and 'Skill India',
processes is also one of the thrust areas of SAIL Plants for lowering the power
etc.
consumption per ton of saleable steel production.
Your Company has played a key role in the development of home grown,
As a responsible corporate house, your Company has laid adequate emphasis
'state-of-the-art' gun-Dhanush, for which it has supplied special quality forging
on development and usage of renewable power sources. While Rooftop Solar
steel from its Durgapur based Alloy Steels Plant. Besides this, your Company
Power Plant of 2 MWp capacity was commissioned during the Financial Year
has supplied steel to India's space missions and has been part of Country's
2018-19 at various buildings of Bokaro Steel Plant, tenders have also been
growth story under the ambit of National Steel Policy 2017.
invited for installation of another 6.2 MWp capacity of Roof Top Solar Plants at
SAIL's steel has been used in every single infrastructure project of National different SAIL Plants/ Units.
significance in the last sixty years like- Chenani Nashri tunnel, Statue of Unity,
In addition to this, a new Joint Venture Company GEDCOL SAIL Power
the world's tallest statue, etc. The quality and variety of steel produced by
Corporation Limited (GSPCL) was incorporated during the Financial Year 2018-
SAIL is praiseworthy and your Company is prioritizing to increase its volumes
19 to develop a small Hydro Electric Plant of 10 MW capacity at Mandira
and achieve its rated capacities along with adding value added products to
Dam, Rourkela. SAIL owns 26% equity in the Joint Venture Company whereas
cater to the market requirements.
remaining 74% equity is owned by Green Energy Development Corporation of
Power Odisha Limited (GEDCOL), a Government of Odisha Company.
Your Company has always strived to maximize its captive power potential in Raw Materials
view of reliability of power supply as well as availability of power at optimum
During Financial Year 2018-19, total requirement of iron ore was met from
cost. During the Financial Year 2018-19, about 58% of the total requirement
captive sources. Your Company's captive mines produced about 28.35 million
of 11120 Million Units(MU) was met from the captive Power Plants. SAIL is
tonnes (MT) of iron ore. In case of clean coking coal, about 1.5MT was met
the first non-utility power producer in the Country to have gainfully utilized the
from indigenous sources (Coal India Limited & captive sources) and for the
concept of Open Access Regulations, laid down in the Electricity Act, 2003,
balance requirement of coking coal (13.21 MT), the Company had to depend
by way of starting inter-regional wheeling of surplus captive power. Continuing
on imports due to limitation in availability of required quantity and quality
the legacy, this year too, SAIL Plants procured about 437 MU of energy under
within the Country. In the Financial Year 2018-19, production in captive collieries
provisions of Open Access which amounts to about 3.93% of the total power
of the Company was about 0.74 MT, out of which 0.44 MT was raw coking
requirement. This included purchase of about 283 MU from the power
coal and balance 0.30 MT of non-coking coal. In case of fluxes, around 1.32
exchanges.
MT of limestone and 0.52 MT of dolomite were produced, giving a production
With the objective to enhance the share of captive power and supply reliable of 1.84 MT fluxes from captive sources. For thermal coal, your Company
power at optimum cost to all ongoing expansion projects, commissioning of depends entirely on purchases from Coal India Limited except small quantity
new captive power plants of 290 MW capacity is in advanced stage by NTPC- produced from captive mines.

SAIL supplied steel for India's first indigenous long range artillery gun ‘Dhanush’.

12
Consequent upon issuance of the order by Hon'ble Supreme Court on Impact of Judgment passed by Hon'ble Supreme Court in Common Cause
11.05.2018, iron ore production at Barsua mines, which remained suspended
Consequent to the judgement dated 2nd August, 2017 of the Hon'ble Supreme
since 17.05.2014, got resumed on 20.05.2018.
Court in the matter of Common Cause, State Governments of Odisha and
Grant of Environment Clearance(EC), Forest Clearance(FC) Jharkhand have issued Demand Notices of `204.58 crore and `1759.02 crore
respectively and State Government of Chhattisgarh has issued Show Cause
In order to expedite capacity expansion projects of mines, following
Notices amounting to `8,349.09 crore for payment of compensation under
Environment and Forest Clearance have been obtained during 2018-19:
section 21(5) of the MMDR Act and for EC violations related to iron ore, flux &
• Stage-II FC for diversion of Sabik Kisam forest lands under 6.9 Sq. mile coal mines, till date.
lease of Bolani Mine was granted by MoEFCC on 29.04.2019.
In order to mitigate the impact of order of Hon'ble Supreme Court, Secretary,
• Terms of Reference (ToR) for conducting EIA study for ML-139 Mining Ministry of Steel vide letter dated 13.10.2017 had taken up the, matter with
Lease of Barsua Mine was granted on 24.08.2018. Secretary, Ministry of Mines to bring an Ordinance to amend Section (3) of
However, Stage-II Forest Clearance for the capacity expansion of Gua and MMDR Act, 1957 by including the definition of "lawful authority" and "mining
Chiria Mines and opening of South-Central blocks in Kiriburu-Meghahatuburu operation without any lawful authority" and consequently, Ministry of Mines
Mines in Saranda forest in Jharkhand is awaited from MoEFCC. In view of its vide O.M. dated 15.03.2018 has sent a draft note for the Cabinet on proposal
criticality to the capacity expansion projects, the matter is being actively pursued for amending the Mines and Minerals (Development and Regulation) Act, 1957.
at the level of MoEFCC, Ministry of Steel and Government of Jharkhand. Ordnance in this regard is awaited.

MoEFCC has also linked grant of EC for Kalwar-Nagur lease of BSP with Return of Parbatpur and Sitanala Coal Blocks
payment of Net Present Value(NPV) for entire forest land under lease. SAIL Sitanala Coal Block
has challenged the notice in this regard in the Hon'ble Chhattisgarh High Court.
Consequent to the SAIL's letter dated 12.03.2018 to Ministry of Coal(MoC)
In pursuance of the Hon'ble Chhattisgarh High Court Order dated 11.09.2018,
regarding returning of Sitanala Coal Block, MoC, vide letter dated 04.10.2018
two meetings were held under the Chairmanship of Secretary, MoEFCC on
issued a Termination Notice against Allotment Agreement and Allotment Order,
27.11.2018 and 22.01.2019. SAIL has submitted comprehensive plan for
in respect of Sitanala Coal Block and advised the bank on 25.10.2018 to
development of Kalwar-Nagur deposit as directed during the first meeting held
invoke the Bank Guarantee(BG) of `10.43 crore. Consequently, the bank
on 27.11.2018 and has also submitted its representation regarding issues in
invoked the BG on 30.10.2018. On challenging the Termination Notice before
disagreement during the second meeting held on 22.01.2019. In the meantime,
Delhi High Court, Hon'ble Court vide its Order has not stayed the invocation of
vide OM dated 01.01.2019, MoEFCC provided the opinion of AGI to SAIL,
BG but directed that if the petition is decided in favour of SAIL, consequential
which is in line with the interpretation of FC Act made by SAIL. The matter was
direction for refund of the amount collected by invoking the Bank Guarantee
last heard in Hon'ble Chhattisgarh High Court on 07.05.2019 wherein, it was
will be passed. The matter was listed on 10.01.2019 wherein, counsel
informed by the respondents (MoEFCC and Government of Chhattisgarh) that
appearing for Ministry of Coal sought further time to file a counter affidavit.
pleading on their part is complete. In the final hearing held from 17th and 19th
The matter has been listed for further hearing.
June, 2019, Hon'ble Court heard all the parties at length, including pleadings
made by the UOI, Chhattisgarh State Govt. and SAIL. The case has been posted Parbatpur Coal Block
for next date of hearing.
SAIL vide letter dated 08.03.2018 had intimated Nominated Authority, Ministry
Legal recourse in the matter of rejection of Environment Clearance proposals of Coal(MoC), about the decision of its Board to return Parbatpur Coal Block
of Pandridalli & Rajhara Pahar iron ore mining lease of BSP and Tulsidamar to MoC. However, decision from MoC in this regard is still awaited. Further,
Dolomite lease of RMD is being taken. Secretary, MoC, during a meeting held on 16.10.2018 advised SAIL to make
all efforts for ensuring mining of coal from the Parbatpur block by forming a
Extension of lease period and reservation of new areas
Joint Venture with ONGC. On examination by both SAIL and ONGC along with
• On 06.08.2018 Government of Chhattisgarh amended the Chhattisgarh Central Mine Planning and Design Institute (CMPDI), Ranchi, it emerged that
Minor Minerals Rules, 2015 and made a provision for extension of lease concurrent mining of Coal & Coal Bed Methane (CBM) from the same area is
period of mining leases of minor minerals through onetime extension of not feasible technically and from safety view as well. SAIL informed the same
lease period of twenty years after expiry of a period of 50 years from the to MoC on 14.02.2019 and reiterated it's earlier request to refund the amounts
date of original grant. With this amendment, the lease period of Hirri paid including bank guarantee, submitted at the time of allocation of the coal
dolomite and Baraduar dolomite leases will extend up to the period of block and also for allotment of a potential coking coal block in lieu of the
2029 and 2040 respectively, which would have otherwise expired in 2020. returned coal block.
• Vide Notification dated 20.02.2019, Ministry of Mines, Government of Notwithstanding the fact that SAIL has already returned the block to MoC,
India reserved the area of 150 Acres at Ramandurga Bellari District, Joint Secretary, MoC passed an order on 15.02.2019 regarding determination
Karnataka for iron ore for undertaking prospecting or mining operations of compensation for Land and Mine Infrastructure payable to M/s. Electrosteel
through VISL for a period of 10 year. Castings Ltd. as prior allottee of Parbatpur Central Coal Mine wherein previous
• Government of Jharkhand has agreed for extension of lease period of valuation of Land and Mine Infrastructure of prior allottee reduced from
iron ore mining leases including sub-judice leases. `62.2816 crore to `60.3055 crore. Further, vide order dated 11.04.2019 it
made clear that order of determination dated 15.02.2019 does not require
• Pronouncement of Judgment by Hon'ble Delhi High Court on 26.03.2019 reconsideration and the determination made is final.
has paved the way for grant of iron ore mining lease in NEB area in Bellary
District in favour of VISL. Furthermore, Nominated Authority, MoC, vide letter dated 26.03.2019 has
requested SAIL to communicate its decision to continue with the surrender of
• Under the provisions of Mineral (Mining by Government Company) Rules, the Parbatpur Central Coal Mine. Covering the aspects of overlap issues with
2015, Government of Jharkhand vide order dated 25.06.2019 has Petroleum Mining Lease of ONGC and non-grant of mining lease, it was
extended the lease period of Duargaiburu Lease of Gua Iron Ore Mine for informed to MoC on 09.04.2019 to take over the Parbatpur mine from SAIL,
20 years w.e.f. 22.02.2009, with conditions. to refund the amount paid by SAIL at the time of allocation of the coal block
However, delay in renewal of mining leases of Tasra Coking Coal Block and and also allot a potential coking coal block in lieu of the returned Parbatpur
reservation of area for sand mining leases for stowing are areas of concern. coal block. Further action on the matter is awaited from MoC.
The matter regarding clarification, as sought by Government of Jharkhand for Sales & Marketing
renewal of Tasra lease from Ministry of Coal and reservation of area for sand
for stowing are being actively pursued with Ministry of Coal. During the Financial Year 2018-19, your Company achieved its best ever sales

13
volume of over 14.1 million tons (MT), registering a growth of about 0.4% Public Procurement Policy for Micro and Small Enterprises
over CPLY. Continuing to maintain its presence in international markets, SAIL
As required by the Public Procurement Policy of the Government of India, the
has exported 0.76 MT of steel, a growth of about 9% over the previous financial
information on procurement from Micro & Small Enterprises during Financial
year.
Years 2018-19 and 2017-18 is given below:
To tap the vast potential of Rural India, your Company organized 152 'Gaon Ki
Ore' workshops in 29 States/Union territories for increasing awareness on
usage of steel. Small consumers continued to be a focus area and 0.7 MT of (` crore)
steel were sold through the retail marketing channels.
Particulars 2018-19 2017-18
Your Company has enhanced its efforts towards selling value added steel to
various segments. Supplies from the Cold Rolling Mill #3 at Bokaro have Total Amount of Procurement 6141.98 4143.67
been steadily increasing to consumers in the highly demanding, high value
Total Procurement from MSE 1241.47 858.17
auto segment, besides new customers in Power sector. Supplies of special
grades WRC has commenced from the new mill at IISCO Steel Plant. %age Procurement from MSE 20.21 20.71
With the ramping up of production at the Universal Rail Mill at Bhilai, record
4.42 lakh tonnes of long rail panels (260 meters) were supplied to Indian Modernisation & Expansion Plan
Railways, registering a growth of around 40% in the 2018-19. This Mill The Modernisation and Expansion Plan at Rourkela, Burnpur, Durgapur, Bokaro
produces the longest single rail in the World (130 meters). During 2018-19, and Salem Steel Plants have been completed and various facilities are under
record 9.85 lakh tonnes of Rails in prime quality were produced at Bhilai Steel operation, stabilization & ramp up.
Plant, a growth of around 9% over 2017-18. A record 9.44 lakh tons were
supplied to Railways (including supply to RVNL and IRCON). During the year 2018-19, your Company has achieved many milestones. At
Bhilai Steel Plant, hot trial of Steel Melting Shop-III (SMS-III) facilities viz.
As a step towards enhancing brand visibility of Parallel Flange, Structural Converter-2, Billet Casters 1 & 2, Billet cum Bloom Caster and RH Degasser
Sections under the brand name "NEX" were promoted through product has been undertaken. Further, processing of Rail Heat at SMS-III through RH
awareness seminars and workshops conducted across the Country. Focused Degasser and Billet-cum-Bloom Caster route has also been achieved during
Customer engagement efforts including interactions with Structural Designers the year. The integrated process route under Modernisation & Expansion Plan
and Planners, have helped your Company to establish the product range. This is in operation, stabilization & ramp-up. Hon'ble Prime Minister of India has
resulted in growth of 27% in sales of structurals from the new state of the art dedicated the Modernized and Expanded Bhilai Steel Plant to the Nation on
mills over CPLY. 14th June, 2018. A capital expenditure of `4,303 crore has been incurred
Your Company continues to have a significant presence in the Infrastructure during Financial Year 2018-19 and capex planned for the Financial Year
sector. Certain prestigious projects like Statue of Unity, Bogibeel Bridge, etc., 2019-20 is `4,000 crore.
where SAIL was one of the largest supplier of steel, were dedicated to the The details of Addition, Modification & Replacement (AMR) Schemes under
Nation in the Financial Year 2018-19. In addition to this, large quantities of implementation are given in the Management Discussion & Analysis (MD&A)
Plates and Structural steel were supplied to prestigious power and irrigation Report.
projects as well as Rail and Road infrastructure projects in 2018-19.

Steel Authority of India Ltd. became the first domestic steel maker to successfully roll NPB-750 (NPP-750) Narrow Parallel Flange Beams. The Beams are being rolled at new and state-of-the-art Universal Structural
Mill of SAIL's IISCO Steel Plant.

14
Shri Anil Kumar Chaudhary, Chairman SAIL, handing over SAIL employees contribution of ` 3 Crore for relief work of cyclone Fani to Odisha Chief Minister, Shri Naveen Patnaik in presence of Minister of Steel,
Shri Dharmendra Pradhan.

C. HUMAN RESOURCE MANAGEMENT REVIEW

Your Company recognizes contribution of its Human Resources in providing it
the competitive advantage. The Company has achieved its present level of
excellence through investment in its human resource, where skill and knowledge
constitute the basis of every initiative - be it technology or innovation.
Developing skills and capabilities of employees to improve manpower utilization
and labour productivity is the key thrust area of Human Resource Management
(HRM) in the Company.
Your Company provides an environment conducive for learning, encourages
adoption of best practices in every area and nurtures creativity and innovation
among employees. Human Resource initiatives in SAIL are focused on
developing team spirit, employee empowerment and their involvement in
various improvement activities. Strategic alignment of HRM to business
priorities and objectives has facilitated smooth transition to 'state-of-the-art'
technology in the Modernization and Expansion Projects.
Enhanced Productivity with Rationalized Manpower
Developing Employee Capabilities & Competencies
Your Company achieved the Labour Productivity (LP) of 389 TCS/Man/Year in
2018-19. The manpower strength of the Company was 72,339 nos. as on Your Company believes that people's development is the key for overall growth
31st March, 2019 with manpower rationalization of 4,531 nos. achieved during of the organisation. Training and development activities have facilitated
the year. The enhanced productivity with rationalized manpower could be development of employee's knowledge and skills, resulting in advancement
achieved as a result of judicious recruitments, building competencies and of competencies, thereby leading to attainment of organisation's goals and
infusing a sense of commitment and passion among employees to go beyond objectives. SAIL has been making sustained efforts through various training
and excel. Trend of enhanced productivity and manpower rationalization since and development activities with focus on preservation, transfer and
2009-10, onwards is depicted below: improvement of skills, knowledge and technology in collaboration with reputed

15
organizations and development of effective managerial competencies in effective from 1st January, 2007 was implemented in accordance with
association with premier institutes. Presidential Directives dated 5th October, 2009. In case of Non-executive
Preparing employees for tomorrow, for effectively taking up challenges and employees, the salaries and wages are finalized / revised in bipartite forum of
discharging new roles and responsibilities is being given a major thrust. Overall National Joint Committee for Steel Industry (NJCS). The last NJCS agreement
44,369 employees were trained against target of 33,605 employees during was finalized and signed on 1st July, 2014, effective from 1st January, 2012. In
the year on various contemporary technical and managerial modules. terms of notification dated 5th June, 2015 issued by Ministry of Corporate
Affairs, Government of India, the provisions of section 197 of the Companies
Harmonious Employee Relations
Act, 2013 are not applicable to Government Companies. As such, the
SAIL has maintained its glorious tradition of building and maintaining a disclosures to be made in the Board's Report in respect of overall maximum
conducive and fulfilling employer-employee relations environment. The healthy managerial remuneration and managerial remuneration in case of absence or
practice of resolving issues through discussions with trade unions/workers' inadequacy of profits are not included in this Report.
representatives enabled the Company in ensuring workers' participation at
Initiatives for Socio-economic Development of SCs /STs & Other Weaker
different levels and establishing a peaceful industrial relations climate. Some
Sections of the Society
of the bipartite forums are functioning since early seventies and are sufficiently
empowered to address different issues related to wage, safety, and welfare of Your Company follows Presidential Directives on Reservation for Scheduled
workers, arising from time to time, thus, helping in establishing a conducive Castes and Scheduled Tribes in the matter of recruitments and promotions.
work environment. As on 31.03.2019, out of total manpower of 72339, 11974 belong to SCs
Bipartite forums like National Joint Committee for Steel Industry (NJCS), Joint (16.55%) and 10815 belong to STs (14.95%).
Committee on Safety, Health & Environment in Steel Industry (JCSSI), etc. SAIL Plants and Units including Mines are situated in economically backward
with representation from major central Trade Unions as well as representative regions of the Country with predominant SC/ST population. Therefore, SAIL
Unions of Plants/Units meet on periodic basis and jointly evolve has contributed to the overall development of civic, medical, educational and
recommendations/ action plans for ensuring a safe environment & harmonious other facilities in these regions. Some of the contributions are:
work culture which gets substantiated from the harmonious Industrial Relations
• Recruitment of non-executive employees, which comprise close to 84%
enjoyed over the years by SAIL Plants/Units, marked with diverse work culture
of the total employees, is carried out mainly on regional level and hence,
at multi-locations.
a large number of SCs/STs and other weaker section of the society get
In addition, Quality Circles, Suggestion Schemes, Shop Welfare Committees, the benefit of employment in SAIL.
Safety Committee, Canteen Management Committee, Productivity Committee,
etc. also offer multiple avenues for enhanced workers' participation. Workers • Over the years, a large group of ancillary industries have also developed
are also kept abreast of strategic business decisions and their views sought in the vicinity of Steel Plants. This has created opportunities for local
thereon through structured /interactive workshops. unemployed persons for jobs and development of entrepreneurship.
Communication with employees at various levels on a wide range of issues • For jobs of temporary & intermittent nature, generally contractors deploy
impacting the Company's performance as well as those related to employees' workmen from the local areas, which again provide an opportunity for
welfare is done in a structured manner across the Company. Mass employment of local resources of economically weaker section.
communication campaigns are undertaken at Chief Executive Officer / Senior • Establishment of SAIL Steel Plants in economically backward areas has
Officers' level involving structured discussion with large group of employees. given a fillip to the economic activities, thus, benefiting the support
These interactive sessions help employees to align their working with the population providing different types of services.
goals and objective of the Company leading to not only higher production and
productivity but also enhance the sense of belongingness of the employees. • Steel Townships developed by SAIL have the best of medical, education
and civic facilities and are like an oasis for the local Scheduled Castes,
Grievance Redressal Mechanism Scheduled Tribes and other population who share the benefits of prosperity
Effective internal grievances redressal mechanism has been evolved and and development along with SAIL employees.
established in SAIL Plants and Units, separately for Executives and Non-
SAIL has undertaken several initiatives for the socio-economic development
executives. Joint grievance committees have been set up at Plant / Unit level
of SCs/STs and other weaker sections of the society which are mainly as
for effective redressal of grievances.
under:
SAIL Plants/Units are maintaining 3 stage grievance handling mechanism and
employees are given an opportunity at every stage to raise grievances relating • Special Schools have been started exclusively for poor, underprivileged
to wage irregularities, working conditions, transfers, leave, work assignments children at five integrated steel plant locations. The facilities provided
and welfare amenities, etc. Majority of grievances are redressed informally in include free education, mid-day meals, uniforms including shoes, text
view of the participative nature of environment existing in the Steel Plants. The books, stationary items, school bags, water bottles and transportation in
system is comprehensive, simple and flexible and has proved effective in some cases.
promoting harmonious relationship between employees and management. • No tuition fee is charged from SC/ST students studying in the Company
Against 257 staff grievances received during the Financial Year 2018-19 with run schools, whether they are SAIL employees' wards or non-employees'
10 grievances pending from previous year, 254 staff grievances have been wards.
disposed of during the year, achieving 95.13% fulfilment. • Free medical health centres for poor have been set up at Bhilai, Durgapur,
Further, during Financial Year 2018-19, 681 grievances have been received Rourkela, Bokaro and Burnpur providing free medical consultation,
under Centralised Public Grievance Redressal and Monitoring medicines, etc. to the peripheral population mainly comprising of SC/ST
System(CPGRAMS), a National level online system managed by Department and weaker sections of society.
of Administrative Reforms and Public Grievance (DARPG), Government of • SAIL Plants have adopted tribal children. They are being provided free
India and 17 grievances had been carried forward from the previous Financial education, uniforms, text books, stationery, meals, boarding, lodging and
Year. Total 688 grievances have been disposed of during Financial Year 2018- medical facilities for their overall growth at residential hostels, Saranda
19, within average time of 11 days, thereby achieving fulfilment rate of 98% Suvan Chhatravas, Gyanodaya Hostel and an exclusive Gyan Jyoti Yojana
and 10 pending for disposal as on 31st March, 2019. for nearly extinct Birhor Tribe.
Remuneration Policy • For Skill Development and better employability, tribal school passouts
In SAIL, pay and other benefits for executives are based on the Presidential have been sponsored for coaching in premier institutes for IIT/JEE entrance
Directives issued by Ministry of Steel, Government of India. The last pay revision examinations and for trainings along with monthly stipend,

16
Felicitation of proud recipients of Vishwakarma Rashtriya Puraskar awards in 2018.

accommodation, transportation and fooding facility at various ITIs, Nursing CIC, DoPT circulars and High Court cases are also available on the website of
and other vocational training institutes. the Company.
Implementation of Presidential Directives on Reservation for SC/ST Awareness Programs/Workshops on 'Obligation of Public Authorities under
RTI' are being organised across Plants/Units on regular basis and Information
• Liaison Officers have been appointed as per Presidential Directives for
Commissioner has been present in most of these programs.
due compliance of the Orders and instructions pertaining to reservation
for SCs/STs/OBCs at Plants/Units of SAIL. SAIL received a total of 3,814 applications and 653 appeals under the Act
during the Financial Year 2018-19 and all of them have been disposed-off
• SC/ST Cell is functioning in all of the main Plants/Units. A member
within the stipulated time frame under the Act. CIC has also taken up 62 cases
belonging to SC/ST community is associated in all DPCs/Selection
and most of these cases were disposed-off in favour of the Company.
Committees. A sufficiently senior level officer of SC/ST category is
nominated for the purpose as per the level of the Recruitment Board / Since enactment of the Act, SAIL has received a total of 42,524 applications
Selection Committees/DPC. and 6,413 appeals upto 31st March, 2019, which were disposed-off within
the stipulated time. Out of these, 818 cases were taken up by the CIC and
• Internal workshops for Liaison Officers for SC/ST/OBC and other dealing
most of these cases were disposed-off in favour of the Company.
officers of SAIL Plants/Units are conducted at regular intervals through
an external expert to keep them updated on the reservation policy for SC/ Citizen Charter
ST and other related matters.
Your Company is totally committed to excellence in public service delivery
• Plants/Units of SAIL have SC/ST Employees' Welfare Associations which through good governance, by a laid down process of identifying citizens, our
conduct regular meetings with Liaison Officers on implementation of commitment to them in meeting their expectations and our communication to
reservation policy & other issues. In addition, an Apex level umbrella them of our key policies, in order to make the service delivery process more
body namely SAIL SC/ST Employees Federation also exists in SAIL to effective.
represent the issues of SC/ST Employees in a coordinated manner.
SAIL's Citizen Char ter has outlined commitment of SAIL towards its
Implementation of Right to Information Act, 2005 stakeholders, thereby empowering them to demand better products and
services. Objectives of the Citizen's Charter of SAIL may be summarized as
The provisions under the Right to Information Act, 2005(Act) are being
below:
complied by all the Plants and Units of SAIL. All statutory reports, including
Annual Report, are being sent to Ministry of Steel and also being uploaded on • Ensuring citizen-centric focus across all its processes by adopting Total
the website of the Company-www.sail.co.in. Your Company has appointed Quality Management Principles for improvement of products and services.
Public Information Officers(PIO)/Asstt. Public Information Officers and Appellate
• Ensuring effective citizen communication channels.
Authorities and Transparency Officer under Sections 5 and 19(1) of the Act in
each Plant and Unit for speedy redressal of the queries received under the • Demonstrating transparency and openness of its business operations by
Act. Under Sec.5(5), all the officers/ line managers responsible for providing hosting the Citizen's Charter on the Corporate website.
information to the PIO are called Deemed PIO, and are made equally responsible • Working towards delight of citizens, by fail-safe processes and in case of
as PIO, towards timely submission of information to the applicant. exigencies leveraging its service recovery processes, like Grievance
An exclusive RTI Portal has been developed with link available on the website Redressal, Handling Complaints, etc.
of the Company. All the Plants/Units have listed 17 manuals and details of Disclosure under the Sexual Harassment of Women at Workplace
Authorities under the Act are uploaded on the website of the Company. Quarterly (Prevention, Prohibition and Redressal) Act, 2013:
Returns and Annual Returns on implementation of the Act are being submitted
online through the CIC portal. Implementation of online request has already The Company has set up Internal Complaints Committees in line with the
been introduced from 1st May, 2015. A compilation of Record Retention Policy requirement of the Sexual Harassment of Women at the Workplace (Prevention,
of various functions of Corporate Office has also been uploaded on the website Prohibition and Redressal) Act, 2013. These Committees have been set up to
of the Company. In addition to this, compilations of important decisions of redress complaints received regarding sexual harassment. All employees of

17
the Company are covered under these Rules. The details of sexual harassment • Paper submitted for National Conference on Employable Skill Development
complaints received and disposed of during the year 2018-19 are as under: in New India was selected as one of the Best Practices in India.
Number of complaints received : 7 • Golden Peacock Environment Management Award (GPEMA) - 2019.
Number of complaints disposed off : 5 Bhilai Steel Plant
Number of complaints pending as on 31.03.2019 : 2 • Smt. Rajani Rajak, Development Assistant(CSR) has been conferred with
Nari Shakti Samman, 2018 for outstanding contribution to women's
D. AWARDS & ACCOLADES WON DURING THE YEAR empowerment.
Company Level
Durgpaur Steel Plant
Your Company has won the following awards during the Financial Year 2018-
• DSP bagged ENCON Award, 2018 for Excellence in Energy Conservation
19:
organised by CII, Eastern Region.
• 1 Prime Minister's Shram Award (involving 6 employees) for the Year
2017. • DSP was bestowed with 10 numbers Par-Excellence Award at National
Convention on Quality Concepts organized by Quality Circle Forum of
• 9 Vishwakarma Rashtriya Puraskar Awards (involving 48 employees) for India.
the Performance Year 2016.
Rourkela Steel Plant
• Governance Now PSU Award for 'Resilient Growth' in the 'Maharatna'
Category. • RSP bagged the Certificate of Appreciation-theme based award in Prime
Minister's Trophy Awards 2016-17 for "Initiative to reduce turnaround
• Shri Anil Kumar Chaudhary, Chairman, SAIL has been awarded Top
time of BOBS wagons leading to substantial reduction in Demurrage and
Rankers Excellence Award-2019 for 'Outstanding Leadership' by Shri
Optimum Utilization of National Resources".
Sanjeev Sanyal, Principal Economic Advisor, Government of India.
• Recognition towards "Strong Commitment to HR Excellence" in the 9th • RSP received the 'Golden Peacock Award for Corporate Social
CII HR Excellence Award for the year 2018-19. Responsibility' for the year 2018.

• India's Top Challengers Award at the 16th Construction World Global • RSP was awared with 'Srishti G-Cube Good Green Governance Award'
Awards, 2018. for the year 2018 for excellence in Environment Management.

• National Award for Excellence in Cost Management for first place in 'Public- • The Quality Circle team from RSP was bestowed with Par Excellence
Manufacturing-Mega' Category by The Institute of Cost Accountants of Award at National Convention on Quality Concepts organized by Quality
India. Circle Forum of India.
• 'Runners up' Trophy (in Category-A) under "NIPM National Award for HR Bokaro Steel Plant
Best Practices 2018".
• BSL received the 18th Annual Greentech Environment Excellence Award-
• SAIL's "Ispat Bhasha Bharti" received second prize for the best in-house Platinum Category in Metal & Mining Sector for the year 2018 in
journal at town level for the Year 2017-18 by Town Official Language recognition of excellent environmental performance from Greentech
Implementation Committee, Delhi. Foundation, Delhi

Shri Anil Kumar Chaudhary, Chairman SAIL, receiving the National Award for Excellence in Cost Management, conferred to SAIL by The Institute of Cost Accountants of India, from Hon'ble Union Minister of Railways,
Shri Piyush Goyal.

18
Oxidation pond at Rourkela for treatment of township effluent water.

• BSL bagged the National Water Awards, 2018 in recognition of best large friendly management of various wastes, being generated inside the Plant
scale industry for industrial water conservation category in eastern zone premises as well as in the townships, SAIL Plants and Mines operate their
of India. processes without disturbing the ecological balance. Your Company has also
drawn its environmental vision in consonance with the Corporate Environmental
IISCO Steel Plant
Policy, which not only addresses the need for compliance of stipulated norms
• ISP bagged the West Bengal Best Employer Brand Award for the year but also emphasises on striving to go beyond. Besides, your Company is
2018 by World HRD Congress in recognition of HR initiatives. committed to address the stakeholders' concerns and communicate its
• ISP has won the 'Golden Peacock National Training Award' for the year environmental philosophy to all the stake holders.
2017-18. Improvement in Emissions and Discharges
Alloy Steels Plant SAIL Plants and Mines are efficiently operating the pollution control devices/
• ASP bagged the Ispat Suraksha Puraskar, 2018 for 'No fatal accident' facilities and maintaining regularly through revamping/refurbishing/revitalization
during the Calendar Year 2016 & 2017 under Scheme-II. and also up-grading them as and when required, for the purpose of complying
with the applicable environmental standards, which are becoming more and
• ASP received the Ispat Suraksha Puraskar 2018 for 'No fatal accident' more stringent day by day. Concerted efforts have resulted in achieving major
involving Contract Labour during the Calendar Year 2016 & 2017 under improvements during the Financial Year 2018-19 over the last five years in the
Scheme-IV. following areas:
• 2 Quality Circle Teams from ASP were bestowed with Excellence Award • The Particulate Matter (PM) Emission Load has reduced by around 16%
in National Convention on Quality Concepts -2018 organised by Quality to 0.70 kg/tcs.
Circle Forum of India.
• Specific Water consumption has reduced by more than 6 % to 3.44 m3/
Salem Steel Plant tcs.
• SSP bagged the "Innovation and Sustainability Award for Industry" for • Specific Effluent Discharge has reduced by around 17 % to 1.80 m3/tss.
the year 2017-18 by The Institution of Engineers, Salem, in recognition
of Excellent Performance in various fields. • Specific Effluent Load has reduced by around 11 % to 0.085 kg/tcs.

Chandrapur Ferro Alloy Plant • Utilisation of BF slag has increased by around 9.5% to 95.89 %.

• CFP received the Ispat Suraksha Puraskar, 2018 for 'No fatal accident' • Specific CO2 emission has been reduced by more than 3% to 2.57 T/tcs.
involving Employees under Scheme-IV Group 'B'. Adoption of Energy-Efficient Technologies and State-of-the-Art Pollution
• CFP won the Ispat Suraksha Puraskar 2018 for 'No fatal accident' involving Control Equipment/Facilities
contract labour for the year 2018 under Scheme-IV Group 'B'. Your Company has already implemented latest state-of-the-ar t clean
RDCIS technologies and best feasible and available pollution control facilities in the
course of its Modernization and Expansion Plan. Some of the major clean
• RDCIS bagged several prestigious awards during 2018-19 like Metallurgist technologies are as under:
of the year, O.P. Jindal Gold Medal, Indranil Award, M. Visvesvaraya Award,
etc. • Tall Coke Oven Batteries along with Coke Dry Cooling Plant, Land based
Pushing Emission Control System, Computerised Combustion Control
E. ENVIRONMENT MANAGEMENT System, etc. at BSP, RSP and ISP.

Within the ambit of notified environmental standards applicable for emission • Sinter Plant integrated with improved ignition system (multi-slit burners),
and discharge of pollutants into the environment and rules pertaining to eco- Waste Heat Recovery facility from sinter cooler, etc. at RSP, BSL and ISP.

19
• Blast Furnace of higher capacity, equipped with Top Pressure Recovery • 40 MW capacity Solar Power Plant at Rourkela.
Turbine, Waste Heat Recovery facility, Pulverised Coal Injection, Cast
• 25 MW capacity Solar Power Plant at Kulti.
House De-dusting System and torpedo ladle at BSP, RSP and ISP.
• 7 MW capacity Solar Power Plant at Bhilai.
• Switching over to Cast House Slag Granulation Plant from offsite slag
granulation facility, progressively. Besides, some of the major initiatives taken towards implementation of
renewable energy projects include setting up of (i)10 MW Hydel Power Plant
• Phasing out of energy-intensive ingot route with continuous casting.
at Mandira Dam, RSP, for which a Joint Venture Agreement has been signed
• Walking Beam Reheating Furnace (RHF) in place of pusher type RHF at between RSP and Green Energy Development Corporation of Odisha Limited
the Rolling Mill in reducing energy consumption as well as CO2 emission. (GEDCOL) and (ii) 6.195 MW roof top Solar Units on different buildings under
New Initiatives Ministry of New and Renewable Energy (MNRE) scheme. Further, 3 MW roof
top Solar Power units have been installed on various buildings of SAIL Plants
a. Environment friendly disposal of Poly Chlorinated Bi-Phenyls (PCBs) - a and Units.
environmental pollutant
e. Bio-digester for processing of wastes
Bhilai Steel Plant, in partnership with the MoEF&CC and UNIDO, has initiated
a project for setting up a disposal facility for Polychlorinated Biphenyls (PCBs), As a green initiative and in compliance with the "Solid Waste Management
categorized as Persistent Organic Pollutants (POPs) at its site. The project is (SWM) Rules, 2016", DSP and RSP have installed bio-digesters for processing
likely to be completed by December, 2019. of about 400 kg canteen wastes per day, resulting in safe disposal of such
biodegradable wastes, inside plant premises. The bio-digester converts the
b. Bio-sequestration of CO2
bio-degradable solid wastes into compost, which is used as manure for
For the purpose of reduction of CO2 emission and sequestration of the generated horticulture. BSL has also taken up a project for installation of a bio-gas plant
carbon back into the system, SAIL is assessing its carbon footprint in one for processing of canteen waste.
hand and potential of sequestration of CO2, through its existing biotic resources,
Environmental Management System (EMS) linked with ISO-14001:2015
on the other. A project on carbon sequestration through afforestation has been
taken up at the site of Rourkela Steel Plant. M/s. Tropical Forest Research Environmental Management System (EMS) linked to ISO 14001 is a set of
Institute, Jabalpur, has been engaged as the sequestration partner to carry processes and practices that enable an organization to reduce its environmental
out the project in February, 2014. The project will continue till March, 2020. impacts and increase its operating efficiency. Implementation of EMS has
c. Enhancing utilization of wastes through application of 4Rs (Reduction, helped SAIL's Plants and Mines to ensure that their performance being always
Reuse, Recycling and Recovery): within the applicable regulatory requirements.

With a view to increase utilization of wastes being generated inside Plant During the Financial Year 2018-19, implementation of EMS (ISO-14001:2015)
boundary, in the recent years, some R&D based initiatives like steam maturing has been completed at IISCO Steel Plant and Gua Ores Mine. Re-certification
of BOF slag, dry granulation of BOF slag, use of BOF slag as rail track ballast, of EMS (ISO 14001:2015) was done at Meghahatuburu Iron Ore Mine, Kiriburu
use of BF and BOF slag as substitutes to natural aggregates, use of BF/BOF Iron Ore Mine, Bolani Ores Mine, Barsua Iron Mine and Dalli Mechanised Mine.
slag in road making, use of BOF slag as soil ameliorant and in cement making Six warehouses (Dankuni, Faridabad, Kalamboli, Chennai, Delhi and
have been undertaken in the recent years. Vishakhapatnam) of CMO have also been re-cer tified with EMS (ISO
14001:2015) during 2018-19.
d. Application of Renewable Energy towards a new era
Sustainable Development Projects
Your Company has set a target of installation of 242 MW renewable energy
Power Plants at the following locations: Restoration and rehabilitation of degraded ecosystem is essential for
maintaining and enhancing bio-diversity as well as replenishing the eco-system
• 120 MW capacity Solar Power Plant at Bokaro. services. About 250 acres of old barren overburden dumps and water void in
• 50 MW capacity Solar Power Plant at Salem. 200 acres of limestone mined out area in Purnapani have been successfully

SAIL's Rourkela Steel Plant initiated a new project for utilising waste plastic in construction of road.

20
restored to fully functional ecosystems that generate ecosystem services and BCG. The Roadmap contains recommendations encompassing various
goods as well as sequester CO2. functional areas of the Company including Raw Materials, Production,
Sales & Marketing, Supply Chain & Logistics, Manpower & Productivity,
Plantation
etc. SAIL is presently in the process of implementation of the
Your Company realizes the role of plantation in overall environmental recommendations which are expected to contribute towards improvement
management initiatives. It is a well-known fact that plants play an important in the Company's performance.
role in balancing the ecosystem and function as a carbon sink. Keeping the
enormous contribution of the plants in mind, SAIL has long been adopting Disinvestment of SAIL Plants: On 27th October, 2016, the Government of
extensive afforestation program religiously in its Plants and Mines since its India (GoI) accorded 'in-principle' approval for Strategic Disinvestment of three
nascent stage. More than 20.5 million saplings have been planted across Units of SAIL viz. Salem Steel Plant (SSP), Salem, Visvesvaraya Iron and
SAIL Plants and Mines till date. Giving special thrust for plantation, more than Steel Plant (VISP), Bhadrawati and Alloy Steels Plant (ASP), Durgapur. The
4.42 lakhs of saplings have been planted during 2018-19. entire process of Strategic Disinvestment is being overseen by an Inter-
Ministerial Group(IMG) constituted by the Ministry of Steel(MoS) and chaired
F. STRATEGIC INITIATIVES OF THE COMPANY by the Secretary, Steel.
Your Company has adopted a multi-pronged approach that includes organic SAIL Board has accorded 'in-principle' approval for the Strategic Disinvestment
growth, brown-field projects, technology leadership through strategic alliances, of these Steel Plants. To carry out the process, the Company has appointed
ensuring raw material security by developing new mines, diversifying in allied Transaction Advisor(TA), Legal Advisor (LA), Asset Valuer(AV) and Tax cum
areas, etc. In line with the above approach, SAIL has formed Joint Venture Accounting Consultant (TCA).
Companies in different areas viz. power generation, rail wagon manufacturing,
slag cement production, securing coking coal supplies from new overseas Upon receipt of approval of the Government for issue of Preliminary Information
sources, etc. New initiatives are currently being explored in areas such as Memorandum (PIM)/Expression of Interest request (EoI) for disinvestment of
pellet manufacturing in a joint venture, outsourcing of power distribution and ASP on 1st February, 2018 from the Ministry of Steel, Public Notice for inviting
township maintenance services in SAIL townships, etc. The status of Strategic EoI for ASP, Durgapur was issued on 14th February, 2018. Since, the EoIs
Initiatives taken by your Company in the recent past includes the following: received in response to the above were not meeting the specified eligibility
criteria, the process has been annulled. Fresh process in this regard has been
• Memorandum of Understanding with KIOCL for exploring the Techno- initiated and revised PIM/EoI Requests of ASP, VISP and SSP have been issued.
economic Feasibility of Setting up of a Pellet Plant of Suitable Capacity
under a Joint Venture: A Memorandum of Understanding(MOU) with Business Excellence Initiatives
M/s. KIOCL Limited (KIOCL) was signed on January 30, 2019 to undertake Implementation of Management Systems
a Joint Techno-Economic Feasibility Study for setting up of a Pellet Plant
of suitable capacity at any appropriate location across SAIL's Integrated Most of SAIL Plants/Units are certified to ISO 9000, ISO 14000, OHSAS 18000
Steel Plants. and SA 8000 Management Systems. BSP, BSL and DSP have implemented
ISO 50000 (Energy Management System) and ISO 27000 (Information Security
• Memorandum of Understanding with Capital Goods Manufacturers System) also in addition to the above mentioned four systems.
Under 'Make In India' Initiative: The National Steel Policy-2017 envisages
creation of 300 million tonnes (MT) of steel capacity in the Country by Certifications achieved during 2018-19:
2030-31 as against existing capacity of about 137 MT. The estimated • Plants and Units upgraded their systems to the new version i.e. ISO 9001
import of plant and equipment, for reaching 300 MT capacity, will be : 2015 & ISO 14001 : 2015
around USD 25 billion. Further, it is estimated that at 300 MT capacity
level, India will have to spend about USD 500 million annually for import • ISP- BOF, CCP, Blast Furnace and Coke Ovens certified to ISO 9001 :
of proprietary and other spares. To accomplish the Vision of the 2015.
Government of India, your Company has signed MOUs with Capital Goods • ISP - CE Certification achieved for exporting structurals.
Manufacturers' (BHEL and HEC) in order to give a boost to indigenization
of manufacturing of capital goods related to steel sector. The MOUs were • DSP- Medium Structural Mill received CE certificate required for export
signed at a Conclave on "Capital Goods for Steel Sector: Manufacturing of its products.
in India" held on October 23, 2018 at Bhubaneswar, Odisha. IT Related Initiative
• GEDCOL SAIL Power Corporation Limited, a new Joint Venture Company Your Company has put in consistent efforts to develop and implement
between SAIL and M/s. Green Energy Development Corporation of Odisha Information Technology (IT) systems in all spheres of business, in line with
Limited (a wholly owned subsidiary of Odisha Hydro Power Corporation the objective of achieving speed and accuracy of data availability and
Ltd.) has been formed on September 6, 2018 for setting up 10 MW small automating business processes.
hydro-electric power plant at Mandira Dam, Rourkela, Odisha.
Due to sustained efforts over the years to keep pace with latest technology
• Closure/Exit from non-operational and non-performing Joint Venture
your Company has been able to cover the major spectrum of business
Companies and Subsidiary Companies of SAIL: Your Company has
operations under the sphere of Enterprise Resource Planning (ERP). Four
initiated actions for closure / exit from certain Joint Venture Companies
Integrated Steel Plants at Bhilai, Durgapur, Bokaro and Rourkela and Central
as well as Subsidiary Companies which are either non-operational or
Marketing Organization (CMO) have already implemented ERP. ERP
non-performing. Closure action for two subsidiary companies viz. SAIL
implementation at 5th Integrated Steel Plant i.e. IISCO Steel Plant is in progress
Jagdishpur Power Plant Limited and SAIL Sindri Projects Limited under
with Go-live planned in Financial Year 2019-20. At Corporate Office, ERP has
Fast Track Exit Mode is in progress.
Gone Live in July, 2019.
• In order to meet the challenges of adverse business environment, a
SAIL embarked on the journey of availing IT services through Cloud model
Company-wide turnaround exercise named 'SAIL Uday' was initiated
which is increasingly becoming de facto industry standard due to its inherent
during 2016-17. As a part of the 'SAIL Uday' exercise, your Company
advantages of quick deployment, cost effectiveness, ease of manageability
engaged M/s. Boston Consulting Group (BCG), a leading Global
while providing access to the latest technology. Corporate Office pioneered in
Management Consultant, to study the health of the Company, suggest
this initiative for deployment of ERP solution with ISP following the same for
suitable measures for its turnaround and provide hand holding support
its ERP deployment.
and assistance to SAIL for implementation of approved road map for turn
around. The study phase of 'SAIL Uday' culminated in October, 2017 with Manufacturing Execution Systems (MES) in Bhilai Steel Plant has been extended
the submission of the 'Comprehensive Turnaround Roadmap' Report by in URM and SMS-III to cater to shop execution, material tracking and balancing,

21
sampling and result recording, etc. inside each shop for enabling rolling as Exhibitions & Visibility - During this period, SAIL also participated in various
per stringent quality requirement of Railways and facilitate timely dispatch. exhibitions including Metal & Metallurgy, Vibrant Gujarat, ISA Steel Conclave,
Implementation of e-Way Bill with respect to inter-State movements for statutory FICCI India Steel and etc. creating far reaching visibility of Brand SAIL as well
compliance has been done in major Plants/Units of the Company. as raising more awareness about SAIL's variety of new age steel products.
The year also saw SAIL associating with various sponsorship events to create
As part of GOI initiative, steps have been taken to maximize procurement more connect with the Company's brand.
through GeM Portal and as a step towards automation, interfacing of Purchase
Orders with ERP systems has been initiated. Social Media Efforts:

Your Company implemented in-house Online Human Resource Management SAIL also effectively utilized its social media handles like Facebook, Twitter,
System (HRMS) for creating a centralized repository of employee information Instagram, Youtube, etc. for instantly reaching out and connecting with the
mainly pertaining to Employee Master Data, Last Pay Certificate, Pension Data, external as well as internal stakeholders in a sustained manner. Celebration of
Grievance System, Training Module and MIS Reports. every special occasion and event was shared with stakeholders on the social
media. Short films, developed in-house, on relevant subjects related to steel
Your Company in its endeavor of keeping pace with digitization and changing were also shared on the Company's social media handles.
times has taken initiatives in mobility and has developed android apps in areas
pertaining to Human Resources as well as capturing of shop floor parameters Special Initiative:
related to production. Your company has stood the test of time and has its rich legacy since the year
To promote transparency across the Organization, system has been 1959. This year was the diamond jubilee year of production of SAIL. To highlight
implemented for Complaint Registration and Vigilance Clearance for executives your Company's rich legacy and future plans, it was decided to celebrate this
of the Company. 60th year in a befitting manner. A special logo commemorating the milestone
year was designed. A commemorative event along with a special SAIL Day
Corporate Communication Walk and a unique cricket match between SAIL (SAIL GIANTS) and Rest of
Strategic Objective Steel Industry (STEEL WARRIORS) was organized at corporate level as a part
of the celebration. The efforts were lauded by the entire steel industry. Your
Communication is assuming an increasingly important role today for every
company's continuous efforts and initiatives to engage with stakeholders and
Corporate. The role of corporate communication in SAIL, the largest public
reach out to them through communication made a lasting impact in the minds
sector steel maker of the Nation and a Company having multi-unit, pan-India
of the people.
presence, becomes vital in reaching out to its stakeholders. Recognizing the
evolving paradigm of communication and the ways of sharing information G. VIGILANCE ACTIVITIES
with both external and internal stakeholders, your Company keeps undertaking
several initiatives to maintain a healthy flow of information and reach out to The objective of SAIL Vigilance is to facilitate an environment enabling people
the stakeholders. to work with integrity, efficiency and in a transparent manner, upholding highest
ethical standards for the organization. To achieve this objective, the Vigilance
Internal Communication efforts: Continuous information dissemination in Department carries out preventive, proactive and punitive actions with greater
your Company and employee engagement is a primary focus area of Corporate emphasis in the preventive and proactive functions. Following activities were
Communications team. This was achieved through various means: undertaken during the Financial Year 2018-19:
Large Group Interactions - The senior management of your Company lead • To increase vigilance awareness amongst employees, vigilance awareness
by Chairman and Board of Directors interacted with employees through a sessions and workshops were regularly held at various Plants and Units
two-way communication process at every Plant & Unit of the Company in a of the Company. A total of 178 workshops involving 2994 participants
phase-wise and structured manner. were organized for enhancing Vigilance Awareness on Whistle Blower
Communicating Company's strategies and aspirations - In Financial Year Policy, Purchase/Contract Procedures, Conduct & Discipline Rules,
2018-19, employees were apprised of company related information and other Common Irregularities, System and Procedures followed in SAIL, etc.
important issues during every important occasion through various channels • Periodic surprise checks including Joint Checks were conducted regularly
of communication including short videos developed in-house, intranet, in vulnerable areas of the Company. A total of 2444 periodic checks
corporate house journal: SAIL-News, posters, messages and other including file scrutiny and Joint Checks were conducted at different Plants/
management collaterals among others. Units.
Focus areas - The focus areas of communication were on : targets and • Vigilance provides vital inputs to the operating authorities for improving
challenges of the Company, roadmap to achieve Company's goals, the prevailing systems for bringing about more transparency. Accordingly,
achievements, technological developments in Company, overall financial eight major System Improvement Projects (SIPs) were undertaken at
situation, domestic steel scenario etc. All communications efforts were aimed different Plants/Units of SAIL.
at highlighting and disseminating these to encourage SAIL collective greater
efforts. • 13 cases were taken up for Intensive Examination at different Plants /
Units. During these Intensive Examinations, high value procurement /
External Communications Efforts: contracts are scrutinized comprehensively and necessar y
Media Relations - Excellent media relations were maintained through proactive recommendations are forwarded to concerned depar tments for
and regular interactions with various media like newspapers, electronic implementing suggestions for improvement.
including television and web based media by sharing Company's important • As per the Guidelines of Central Vigilance Commission, Vigilance
news on a regular and timely manner. Along with this, there were several Awareness Week was observed in SAIL between 29th October to
interviews conducted and covered by top national media outlets to get an 3rd November, 2018. The week started with administering the Integrity
overview, vision, target roadmaps of SAIL management. pledge and reading out the messages of dignitaries on 29th October 2018
Efficacious Brand Outreach - Newer option of reaching target audience was at SAIL Corporate Office as well as all Plants/Units of SAIL. During the
experimented through FM radio. Your Company judiciously utilized various week, Workshops/ Sensitization programmes, Customers meet, Anti-
FM Channels for publicity. Several interactive sessions were organized to corruption March / Walkathon, events like quiz, essay, slogan & drawing/
engage with and reach out to maximum possible target audiences, which poster, debate competition were organized for the employees and their
included architects, customers, educational institutes, Railways, Defence etc. families. As outreach measures, various events like Speech/Oratory
Several branding activities were also undertaken at various platforms to create competition, Poster/Drawing competition, Essay/Slogan competition, Inter
further recall of Brand SAIL. school debate competition, Quiz competition were organized across

22
 various townships of SAIL and metro cities of Delhi and Kolkata, in which AUDITORS' REPORT
around 900 students from 27 Colleges / Universities and more than 4000 The Statutory Auditors' Report on the Accounts of the Company for the Financial
students from various schools participated. Year ended 31st March, 2019 along with Management's replies thereon is
• The following three thrust areas were identified by SAIL Vigilance: placed at Annexure-I to this Report. The Comptroller & Auditor General of
India (C&AG) vide its letter dated 27th July, 2019 has given "Nil" comments on
i) Surveillance in the areas of receipt, sampling & testing of high value
the Standalone Financial Statements of the Company for the Financial Year
raw materials.
ended 31st March, 2019 under Section 143(6)(b) of the Companies Act, 2013.
ii) Audit of SIPs implemented in 2015 and 2016. A copy of the above letter of C&AG is placed at Annexure-II to this Report.
iii) Scrutiny of emergency procurement and contract cases. COST AUDITORS
• 'Inspiration-Prerna', an in-house publication of SAIL Vigilance is being Pursuant to the direction of the Central Government for Audit of Cost Accounts,
published regularly. The above publication contains case studies, the Company has appointed M/s. Sanjay Gupta & Associates, New Delhi,
informative articles, quiz on policy matters, etc. to enhance awareness M/s. Shome & Banerjee, Kolkata and M/s. R J Goel & Co., New Delhi as Cost
of the readers. Auditor(s) for the Financial Year 2018-19.
• As on 01.04.2018, a total of 106 complaints were pending and the closing SECRETARIAL AUDITOR'S REPORT
balance as on 31.03.2019 was 102. The summary of processing of
In terms of the provisions of Section 204 of the Companies Act, 2013, the
complaints during 2018-19 is as under:
Board of Directors has appointed M/s. Agarwal S. & Associates, Company
Secretaries, as the Secretarial Auditor to conduct Secretarial Audit of the
Source Complaints
Company for the Financial Year ended on 31st March, 2019. Secretarial Audit
Received Disposed Report is placed at Annexure-III to this Report.
CVC 2 3 With regard to the observation of the Secretarial Auditor, that composition of
MoS 19 18 the Board of Directors of the Company was not as per requirements during a
part of the Financial Year 2018-19, it is stated that appointment of Independent
Direct 821 825
Directors on the Board of the Company is made by the Company based on
Total 842 846 nomination by Government of India. The Company has requested Ministry of
Steel, Government of India for nomination of requisite number of Independent
Type of Complaints disposed: Directors on its Board.
In respect of observation regarding performance evaluation of the Directors
Closed as found anonymous / pseudonymous 307
not being carried out pursuant to the Regulation 17(10), 25(4) and 19(4)
(filed in line with CVC guidelines)
read with Schedule-II Part D(A) of Securities Exchange Board of India (Listing
Closed as no vigilance angle / allegations 272 Obligations and Disclosure Requirements) Regulations, 2015, it is mentioned
not substantiated that Ministry of Corporate Affairs has vide its Notification dated 5th June, 2015
notified the exemptions to Government Companies from the provisions of the
Referred to other departments 145 Companies Act, 2013 which, inter-alia, provides that Sub Sections (2), (3) &
(4) of Section 178 regarding appointment, performance evaluation and
Closed with preventive/administrative 98 remuneration shall not apply to Directors of the Government Companies.
Recommendations Further, the Ministry of Corporate Affairs vide Notification dated 5th July, 2017
has notified certain amendments in Schedule IV of the Companies Act, 2013
Regular Departmental Actions initiated 24 relating to Code for Independent Directors. As per the Notification, in Schedule
(11 cases of major IV, the clauses relating to evaluation of performance of Non-Independent
penalty against 20 Directors, Chairperson and Board have been exempted for Government
employees and Companies.
13 cases of minor
penalty against 26 CORPORATE GOVERNANCE
employees) In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, the Corporate Governance Repor t and Auditors' Cer tificate on
Total Disposed 846
compliance of conditions of Corporate Governance is placed at Annexure-IV
to this Report.
Vigil Mechanism
In terms of the SEBI Regulations, the Board has laid down a Code of Conduct
The Company has adopted Vigil Mechanism for conducting the affairs in a fair for all Board Members and Senior Management of the Company. The Code of
and transparent manner by adopting highest standards of professionalism, Conduct has been posted on the website of the Company. All the Board
honesty, integrity and ethical behaviour. All employees of the Company and Members and Senior Management Personnel have affirmed compliance with
Directors on the Board of the Company are covered under this Mechanism. the Code.
This Mechanism has been established for employees to report concerns about
unethical behaviour, actual or suspected fraud or violation of Code of Conduct. BUSINESS RESPONSIBILITY REPORT
It also provides for adequate safeguards against the victimization of employees
who avail the Mechanism and allows direct access to the Chairperson of the As per Regulation 34(2)(f) of the SEBI(Listing Obligations and Disclosure
Audit Committee in exceptional cases. No complaint was received during the Requirements) Regulations, 2015, the Business Responsibility Repor t
Financial Year 2018-19. describing the initiatives taken by the Company from Environmental, Social
and Governance perspective forms part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
As per the SEBI(Listing Obligations and Disclosure Requirements) Regulations,
2015, Management Discussion and Analysis Report covering the performance IISCO-Ujjain Pipe and Foundry Company Limited, a wholly owned subsidiary
and outlook of the Company is attached and forms part of this Report. of the erstwhile Indian Iron and Steel Company Limited (IISCO), was ordered

23
to be wound up by BIFR. The Official Liquidator is continuing its liquidation accuracy and completeness of the accounting records and timely preparation
process. of financial disclosures. Further, the Company has a good corporate governance
structure, and strong management processes, controls, policies and guidelines
Your Company has four other subsidiary Companies namely, SAIL Refractory
which drives the organization towards its business objective and also meets
Company Limited (SRCL), SAIL Jagdishpur Power Plant Limited, SAIL Sindri
the needs of various stakeholders.
Projects Limited and Chhattisgarh Mega Steel Limited. SRCL is operating the
Salem Refractory Unit which was acquired by SAIL from Burn Standard Your Company's robust protocols such as independent internal audit,
Company Limited on 16th December, 2011. SAIL Jagdishpur Power Plant documented policies, guidelines, procedures, regular review by Audit
Limited, incorporated for setting up of Gas based power Plant at Jagdishpur Committee / Board, etc. helps in compliance of Internal Financial Controls
and SAIL Sindri Projects Limited, incorporated for revival of Sindri Unit of under the Companies Act, 2013, SEBI (LODR) Regulations, 2015, etc. The
Fertilizer Corporation of India Limited have not taken off and are under closure. Company is committed to the highest standards of Corporate Governance
Closure of SAIL Jagdishpur Power Plant Limited and SAIL Sindri Projects where the Board is accountable to all stakeholders for reporting effectiveness
Limited through Fast Track Exit Mode has been filed with the Ministry of of Internal Financial Control (IFC) and its adequacy. Corporate Governance
Corporate Affairs. Chhattisgarh Mega Steel Limited was incorporated as a has been carried out in accordance with the Companies Act, 2013 and SEBI
Special Purpose Vehicle with an objective of fast tracking developmental (LODR) Regulations, 2015, etc.
processes such as land acquisition, R&R activities, ensuring power and water
linkages, securing necessary statutory approval/in-principle approval from DIRECTORS' RESPONSIBILITY STATEMENT
Ministry of Environment, Forest and Climate Change, etc. for setting up of an
Ultra Mega Steel Project. The project is no longer being pursued by SAIL. Pursuant to Section 134(3)(c) of the Companies Act, 2013(the Act), the
Directors state that:
The Annual Accounts of the subsidiary Companies and related detailed
information shall be made available to the Shareholders of the holding and (i) in the preparation of the Annual Accounts, the applicable Accounting
subsidiary companies, seeking such information at any point of time. Further, Standards have been followed along with proper explanation relating to
the Annual Accounts of the subsidiary companies are available for inspection material departures;
by any Shareholder in the Registered Office of the Company and the Subsidiary (ii) the Directors have selected such Accounting Policies and applied them
Companies concerned between 11 AM to 1 PM on working days. A hard copy consistently and made judgments and estimates that are reasonable and
of the details of accounts of subsidiaries shall be furnished to the shareholders prudent so as to give a true and fair view of the state of affairs of the
on receipt of written request. Company at the end of the Financial Year and of the profit or loss of the
Company for that period;
CONSOLIDATED FINANCIAL STATEMENTS
(iii) the Directors have taken proper and sufficient care for the maintenance
Pursuant to provisions of Section 129(3) of the Companies Act, 2013, the of adequate Accounting Records in accordance with the provisions of
duly Audited Consolidated Financial Statements are placed at Annexure-V to the Act for safeguarding the assets of the Company and for preventing
this Report. The Statutory Auditors' Report on the Consolidated Financial and detecting fraud and other irregularities;
Statements along with the Management's replies thereon is placed at
(iv) the Directors have prepared the Annual Accounts on a Going-Concern
Annexure-VI to this Report. The Comptroller & Auditor General of India (C&AG)
basis;
vide its letter dated 27 th July, 2019 has given "Nil" comments on the
Consolidated Financial Statements of the Company for the Financial Year ended (v) the Directors have laid down internal financial control to be followed by
31st March, 2019 under Section 143(6)(b) read with Section 129(4) of the the Company and that such internal financial controls are adequate and
Companies Act, 2013. A copy of the above letter of C&AG is placed at are operating effectively; and
Annexure-VII to this Report. Further, the statement containing salient features
(vi) the Directors have devised proper systems to ensure compliance with
of the financial statements of the subsidiary, joint venture and associate
the provisions of all applicable laws and that such systems are adequate
companies in the prescribed Form AOC-1 is placed at Annexure-VIII to this
and operating effectively.
Report.
INDEPENDENT DIRECTORS' DECLARATION
EXTRACT OF ANNUAL RETURN
In terms of section 149(7) of the Companies Act, 2013, necessary declaration
The Extract of Annual Return in Form MGT-9 as per the provisions of the
has been given by each Independent Director stating that he/she meets the
Companies Act, 2013 and Rules prescribed therein is placed at Annexure-IX
criteria of independence as provided in sub-section (6) of Section 149 of the
to this Report.
Companies Act, 2013.
BOARD MEETINGS
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER
During the year, 8 meetings of the Board of Directors of the Company were SECTION 186
held, the details of which are given in the Corporate Governance Report.
In terms of the provisions of Section 186 of the Companies Act, 2013 read
with Companies (Meetings of Board and its Powers) Rules, 2014, the details
AUDIT COMMITTEE of Loans, Guarantees and Investments given during the Financial Year ended
The Audit Committee of the Board was initially formed by the Company in on 31st March, 2019 are given in Annexure-X to this Report.
1998. The Audit Committee has been reconstituted from time to time in terms
of the SEBI Regulations and Companies Act, 1956/2013. The minutes of the PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED
Audit Committee meetings are circulated to the Board, discussed and taken PARTIES REFERRED TO IN SUB-SECTION (1) OF SECTION 188
note of. The composition and other details pertaining to the Audit Committee
All the contracts / arrangements / transactions entered by the Company during
are given in the Corporate Governance Report.
the Financial Year 2018-19, with the related parties were in the ordinary course
of business and on an arm's length basis. The transactions with the related
INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY parties have been disclosed in the financial statements. Therefore, particulars
The Company has well established and documented policies and procedures, of contracts or arrangements with related parties referred to in Section 188(1)
which are adhered to for transparent, efficient and ethical conduct of business along with the justification for entering into such contract or arrangement in
and for safeguarding its assets, prevention and detection of frauds and errors, Form AOC-2 do not form part of the Report.

24
DIVIDEND DISTRIBUTION POLICY The details of various CSR initiatives taken by the Company along with the
In terms of the Regulation 43A of SEBI (Listing Obligations and Disclosure Report on CSR in prescribed format are placed at Annexure XII to this Report.
Requirements) Regulations, 2015, the Board of Directors of the Company has The CSR Policy of the Company is available on the website of the Company-
adopted Dividend Distribution Policy which is uploaded on the website of the www.sail.co.in.
Company - https://sail.co.in/sites/default/files/Dividend_Distribution_ Swachha Bharat Abhiyaan-SwachhaVidhyalayaAbhiyaan
Policy_2017.pdf SAIL actively participated in the "Swachch Bharat Abhiyan" initiated by the
Hon'ble Prime Minister of India. Under the campaign, 672 toilets in schools
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN falling within the periphery of its Plants & Mines in the States of Chhattisgarh,
EXCHANGE EARNINGS AND OUTGO West Bengal, Odisha, Jharkhand, Madhya Pradesh and Tamil Nadu had been
In accordance with the provisions of Section 134(3)(m) of the Companies constructed. The toilets are also being maintained with the help of respective
Act, 2013 read with Rule 8 of the Companies(Accounts) Rules, 2014, the School Management Committees.
particulars relating to Conservation of Energy, Technology Absorption and Healthcare: SAIL's extensive & specialised Healthcare Infrastructure provided
Foreign Exchange Earnings and Outgo are given in Annexure-XI to this Report. specialized and basic healthcare to 1.72 crore people living in the vicinity of
its Plants and Units during the period 2011-18. In order to deliver quality
RISK MANAGEMENT POLICY healthcare at the doorsteps of the needy, regular health camps in various
Enterprise Risk Management (ERM) is a strategic business discipline that villages on fixed days are being organized for the people living in the periphery
supports the organization's objectives by addressing its risks and managing of Plants/Units, Mines and far-flung areas. During the Financial Year 2018-19,
the impact of these risks. It is the practice of planning, coordinating, executing about 3050 Health Camps have been organized benefitting approx. 60,000
and handling the activities of an organization in order to minimize the impact villagers. 5 Mobile Medical Units (MMUs) running in the Plant peripheries
of risk on investment, earnings and also strategic, financial and operational have benefitted about 44,000 villagers at their doorsteps. 24 Primary Health
risks. centres at Plants exclusively provided free medical care and medicines to
above 69,000 villagers.
The Risk Management Policy of your Company was approved by the Board
much before the same became a statutory requirement and since then, risk Education: To develop the society through education, SAIL is supporting about
management in SAIL has grown and developed in line with internal and external 77 schools, providing modern education to more than 40,000 children in the
changes. The Policy provides guidance for the management towards business steel townships, 19 Special Schools (Kalyan & Mukul Vidyalayas) are
risks across the Organisation. It focuses on ensuring that the risks are identified, benefitting over 3741 BPL category students at integrated steel plant locations
evaluated and mitigated within a given time frame on a regular basis. with facilities of free education, mid-day meals, uniform including shoes, text
books, stationary items, school bag, water bottles and transportation under
Currently, the architecture of Enterprise Risk Management in SAIL comprises CSR. SAIL in association with the Akshya Patra Foundation, is providing Mid-
a well-designed multi-layered organization structure, with each Plant/Unit day meals to 64,000 students in over 600 Govt. schools in Bhilai and Rourkela.
having its own perceived Risks which are under constant monitoring by the
Risk Owners / Risk Champions who frame and implement the mitigation Women Empowerment & Sustainable Income Generation: Vocational and
strategy and take it to its logical conclusion. Risk Management Committee of specialised skill development training targeted towards sustainable income
the Plant/Unit Chaired by the Head of the Plant /Unit periodically reviews the generation has been provided to 710 youths & 1168 women of peripheral
risks and its mitigation status and reports the same to Chief Risk Officer (CRO) villages in areas such as Nursing, Physiotherapy, LMV Driving, Computers,
of SAIL. SAIL Risk Management Committee (SRMC) oversees the Risk Mobile repairing, Agriculture techniques, Achar/Pappad/ Agarbati/Candle
Management function in the Company by addressing issues pertaining to the making, Screen printing, Handicrafts, Sericulture, Yarn Weaving, Tailoring,
policy formulation as well as evaluation of risk management function to assess Spices, Towels, Gunny-bags, Low-cost-Sanitary Napkins, Sweet Box, Soap,
its continuing effectiveness. Risks identified by the Risk Champion/Risk Officer Smokeless chullah making, etc. 816 youths have been sponsored for ITI training
are deliberated in the Risk Management Committee and strategy for mitigating at Bolani, Bargaon, Baliapur, Bokaro Pvt. ITI and Rourkela, etc.
such risks is formulated. Roles and responsibility of Board, Audit Committee, Connectivity & Water facilities in Rural Areas: Over 79.03 lakh people across
SAIL Risk Management Committee, Risk Management Steering Committee, 450 villages have been connected to mainstream by SAIL, since its inception,
CRO, Risk Officer/Risk Champion related to risk management are defined under by constructing and repairing of roads. Over 8176 water sources have been
the Policy and duly approved by the Board. installed, since inception, thereby enabling easy access to drinking water to
over 50 lakh people living in far-flung areas.
CORPORATE SOCIAL RESPONSIBILITY (CSR) Environment Sustainability: Maintenance of parks, water bodies and botanical
SAIL's Social Objective is synonymous with Corporate Social Responsibility. gardens in its townships and plantation & maintenance of over 5 lakh trees at
Apart from the business of manufacturing steel, the objective of your Company various locations have been undertaken.
is to conduct business in ways that produce social, environmental and Support to Divyangs & Senior Citizens: Divyang children/people are being
economic benefits to the communities in which it operates. For any supported through provision of equipments like-tricycle, motorized vehicles,
organization, CSR begins by being aware of the impact of its business on calipers, hearing aids, artificial limbs, etc. SAIL supports various schemes
society. With the underlying philosophy and a credo to make a meaningful and centres at SAIL Plants under CSR like "Sneh Sampada", "Prayas"and
difference in people's lives, your Company has been structuring and 'Muskaan" at Bhilai; "Schools for blind, deaf & mentally challenged children"
implementing CSR initiatives right from the inception. These efforts have seen and Home and Hope" at Rourkela; "Ashalata Kendra" at Bokaro; various
the obscure villages, where SAIL Plants are located, turn into large industrial programs like "Handicapped Oriented Education Program" and "Durgpaur
hubs today. Handicapped Happy Home" at Durgapur; and "Cheshire Home" at Burnpur.
The CSR initiatives of your Company have always been undertaken in Old age homes are being supported at different Plant townships like "Siyan
conformity to the Companies Act-2013 and Companies (Corporate Social Sadan" at Bhilai, Acharya Dham and Badshah at Durgapur, etc.
Responsibility Policy) Rules, 2014. SAIL carries out CSR projects in and around Sports, Art & Culture: SAIL is regularly organizing inter-village sports
periphery of steel townships, mines and far flung location across the Country tournaments, extending support to major national sports events & tournaments.
in the thrust areas falling in line with Schedule-VII of the Companies Act- Also, supporting and coaching aspiring sportsmen and women through its
2013, namely, education, health care, access to drinking water, sanitation, residential sports academies at Bokaro (Football), Rourkela (Hockey) - with
village development, environment sustainability, women empowerment, world class astro-turf ground, Bhilai (Athletics for boys), Durgapur (Athletics
assistance to divyangs, sustainable income generation through self-help for girls) and Kiriburu, Jharkhand (Archery). Cultural events like Chhattisgarh
groups, sports coachings, promotion of art and culture, etc. Lok Kala Mahotsav, Gramin Lokotsav are organised every year.

25
Development of villages in Saranda Forest: In an effort to bring the • Shri Saraswati Prasad, Special Secretary & Financial Adviser to the
marginalized masses of the remote forest areas to the mainstream of Government of India, Ministry of Steel was holding Additional Charge of
development, SAIL in association with Government of Jharkhand and Ministry Chairman and Managing Director of the Company for the period 1st July,
of Rural Development, Government of India actively participated in the 2018 to 21st September, 2018.
development process of Saranda forest, Jharkhand. SAIL provided ambulances, • Shri Raman has ceased to be Director w.e.f. 31st July, 2018(A/N).
7000 each of bicycles, transistors, solar lanterns and established an Integrated
Development Centre (IDC) at Digha village in Saranda forest. IDC comprises • Shri Harinand Rai has been appointed as Director w.e.f. 1st August, 2018
of facilities like Bank, Panchayat Office, Ration shop, Telecom office, Anganwadi (F/N).
Centre, Meeting room etc. for the local populace. • Shri Anil Kumar Chaudhary, Director (Finance) has been appointed as
In an effor t to align the marginalized masses, a project to promote Chairman of the Company w.e.f. 22nd September, 2018.
comprehensive Water Supply and Sanitation has been initiated by Rourkela • Prof. Ashok Gupta, Mrs. Anshu Vaish and CA Parmod Bindal have been
Steel Plant by developing sustainable tap water source and constructing useable re-appointed as Independent Directors for a period of one year w.e.f. 18th
toilets for each family in 19 villages of Rourkela, i.e. over 10,000 natives have November, 2018.
benefitted. The villagers have been mobilized and empowered for their active
• Shri Krishan Kumar Gupta has been appointed as Independent Director
participation in the project. Village level committees have been formed for
w.e.f. 21st December, 2018.
long-term sustenance of the project.
• Shri Vivek Gupta has been appointed as Director w.e.f. 27th March, 2019
SAIL/Bolani Ore Mines has initiated a project to provide continuous drinking
(F/N).
water supply and sanitation facility in the remote village of Barik Sahi (Kuni
Sahi) under Bolani Panchayat connecting it with the water source 'Jhinkaria • Consequent to superannuation of Shri M.C. Jain, ED(F&A) and Company
Spring', on south of Bolani through a network of G.I. pipelines. All the 300 Secretary on 30th June, 2019, Shri M.B. Balakrishnan, DGM (Board &
natives of Barik Sahi (Kuni Sahi), who had to travel upto 2 kms daily to fetch Company Affairs), SAIL has been appointed as Company Secretary of
water from the springs, have been benefitted with this facility. the Company w.e.f. 1st July, 2019.
SAIL Bio-Diversity Environment Theme Park 'VASUNDHARA' near JC Bose ACKNOWLEDGEMENT
Avenue of DSP Township, Durgapur: The development of a 409 acres Bio-
Diversity Environment Theme Park with water body and plantation of 400 The Board of Directors wish to place on record their appreciation for the support
varieties of trees to attract migratory birds facilitating avian diversity, propagation and value contributed by every member of the SAIL family. The Directors are
of medicinal plants, rainwater harvesting and soil conservation for maintaining thankful to the State Governments, Electricity Boards, Railways, Banks,
ecological balance and environmental sustainability has been carried out. The Suppliers, Customers and Investors for their continued co-operation. The
park site is enriching the environs for 75,000 natives year on year. Directors also wish to acknowledge the continued support and guidance
received from the different wings of the Government of India, particularly from
GENERAL DISCLOSURES the Ministry of Steel.
i. During the year, the Company has not accepted any deposits under the
Companies Act, 2013.
ii. No significant or material orders were passed by the Regulators or Courts For and on behalf of the Board of Directors
or Tribunals impacting the going concern status and Company's operations
in future. However, attention of Members is drawn to the statement on
contingent liabilities in notes forming part of the Financial Statements.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
• Shri Puneet Kansal, Joint Secretary to the Government of India, Ministry (Anil Kumar Chaudhary)
of Steel has been appointed as Director w.e.f. 7th May, 2018. Chairman
• Shri P.K. Singh has ceased to be Chairman and Managing Director of the Place: New Delhi
Company w.e.f. 30th June, 2018(A/N). Dated: 31st July, 2019

26
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management of Steel Authority of India Limited (SAIL) presents its Analysis by 4.9% to reach 106.5 MT, thereby replacing Japan as the World's second
Report covering the performance and outlook of the Company. largest steel producing Country.
A. INDUSTRY STRUCTURE & DEVELOPMENTS Japan produced 104.3 MT in 2018, a decline of 0.3% compared to 2017.
South Korea's Output of Crude Steel stood at 72.5 MT in 2018, a growth of
World Economic Environment
2% over 2017. The US also saw growth in Crude Steel output by 6.2% to
Global economic output grew by 3.6% in 2018, as estimated by IMF in its reach 86.7 MT in 2018.
April 2019 World Economic Outlook update. The Global Economy continued
to expand, with growth in Advanced Economies (estimated 2.2% growth in Top 10 Steel Producing Countries
2018) as well as in Emerging Market and Developing Economies (estimated
Rank Country 2018 (MT) 2017 (MT) % Change
4.5% growth in 2018).
Weakness experienced in the second half of 2018- against the backdrop of 1 China 928.3 870.9 6.6
weakening financial market sentiment, trade policy uncertainty, and concerns
2 India 106.5 101.5 4.9
about China's outlook, is likely to carry over to coming quarters, with global
growth projected to decline to 3.3% in 2019 before picking up slightly to 3.6% 3 Japan 104.3 104.7 -0.3
in 2020. Overview of World Economic Outlook Projections is as under:
World Economic Outlook Projections 4 United States 86.7 81.6 6.2
(Percentage Change) 5 South Korea 72.5 71.0 2.0
Year Over Year
6 Russia 71.7 71.5 0.3
Estimate Projections
2018 2019 2020 7 Germany 42.4 43.3 -2.0

World Output 3.6 3.3 3.6 8 Turkey 37.3 37.5 -0.6

9 Brazil 34.7 34.4 1.1
Advanced Economies 2.2 1.8 1.7
10 Iran 25.0 21.2 17.7
United States 2.9 2.3 1.9
Source: World Steel Association
Euro Area 1.8 1.3 1.5
World Steel Association has forecast that Global steel demand will increase
Japan 0.8 1.0 0.5 by 1.3% in 2019 and reach 1735 MT. Steel demand in China is expected to
moderate to 1% in 2019. In the Emerging and Developing Economies excluding
Emerging Market and 4.5 4.4 4.8
China, steel demand is forecast to grow by 2.9% in 2019.
Developing Economies
Indian Economic Environment
China 6.6 6.3 6.1
GDP growth for the Financial Year 2018-19 has been estimated at 6.8% at
India 7.1 7.3 7.5 constant prices as per the provisional estimates of National Income by the
Central Statistics Office (CSO), compared to 7.2 % in Financial Year 2017-18.
Brazil 1.1 2.1 2.5 The sectors that recorded high growth (~ 7%) were Construction,
Manufacturing, Electricity & Utilities, etc.
Russia 2.3 1.6 1.7
Source: IMF World Economic Outlook Update, April 2019
World Steel Scenario
In 2018, Global Crude Steel production as reported by World Steel Association,
increased by 4.6% to reach 1808.6 million tonnes(MT) compared to 2017.
Crude Steel production increased in all regions in 2018 except in the Europe,
where output was flat.
Asia accounted for 1271.1 MT of Crude Steel production in 2018, an increase
of 5.6% compared to 2017. China continued to dominate World Crude Steel
production with an output of 928.3 MT, at a growth of 6.6% over 2017. In
2018, China's share of Global Crude Steel production increased to 51.3%
compared to 50.3% in 2017. India's Crude Steel production in 2018 increased

(RE: Revised Estimates, PE: Provisional Estimates)

The cumulative IIP growth for the period April to March 2018-19 over the
corresponding period of the previous year stood at 3.6%. IIP growth rates for
mining, manufacturing and electricity sectors for the April-March 2018-19
period were 2.9%, 3.6% and 5.2% respectively. In the same period, while
consumer durables registered a good growth 5.5%, consumer non-durables
registered a growth of 3.9%. Capital goods registered a growth of 2.8%, while
Infrastructure/Construction goods registered a growth of 7.5%. Cumulative
growth of the overall index for eight core sectors during April-March 2018-19
was 4.3%. Steel index increased by 4.7% during April to March, 2018-19.

27
Indian Steel Scenario Compliance Report for these mines was forwarded by Govt. of Jharkhand
for approval of MoEFCC during July, 2015- April, 2016. But later on
As per Joint Plant Committee (JPC), production of Crude Steel during fiscal
MoEFCC has linked the grant of Forest Clearance for mines in Saranda
2018-19 stood at 106.6 million tonne, at a growth of 3.3 % over same period
forest with finalisation of MPSM for Saranda Forest.
last year. Finished Steel production also registered a growth of 3.7% to reach
131.7 MT during 2018-19, compared to same period last year. Exports of Post approval of MPSM, as Gua and Kiriburu-Meghahatuburu leases were
total Finished Steel decreased substantially by 33.9% to 6.36 MT during 2018- part of mining zone of MPSM, MoEFCC vide letters dated 26.08.2018
19 over last year, while imports increased by 4.7 % to 7.83 MT. and 03.07.2018 requested Govt. of Jharkhand to provide information
India's consumption of total finished steel saw a growth of 7.5% in 2018-19 regarding Forest Clearance(FC) proposals of South-Central Blocks of
over same period last year. Demand for Finished Steel in India is expected to Kiriburu-Meghahatuburu and Duargaiburu lease of Gua mine respectively.
grow at 7.1% in 2019, as projected by World Steel Association. Though, requisite information was provided by Govt. of Jharkhand in
B. OPPORTUNITIES & THREATS FOR SAIL November, 2018 itself but after examining the proposals for about three
months once again in Feb/March, 2019, MoEFCC had asked for further
Opportunities: clarifications on the proposal from Govt. of Jharkhand showing inability
in acceptance of land earmarked for compensatory afforestation as more
• With an accelerated push from the policies proposed by the new than 20% of land identified is part of moderately dense forest(MDF). Fresh
Government regarding steel intensive segments such as infrastructure, land patches are being identified and may further delay in grant of Stage-
capital goods and construction, India is all set to become the 2nd largest II FC.
steel consumer in the world in the immediate future.
• In view of revised Guidelines dated 1st April, 2015, issued by the Ministry
• The newly commissioned mills are oriented towards products required of Environment, Forest and Climate Change (MoEFCC), Government of
to cater to the infrastructure development. India, there is a requirement of payment of NPV (about `1,100 Crore) for
• High export potential for markets of Middle East and South East Asia. entire forest land within mining lease area.

• Potential for improving product quality and reducing cost through Being a Government Company, SAIL has taken up the matter with MoEFCC,
operational efficiency and utilization of the new and modernized units. GoI for exemption of payment of NPV for entire forest land in a mining
lease in lieu of the general approval being provided through referred
Threats Guideline, though being a Government Company, SAIL is not required to
take such approval under FC Act. Though, vide OM dated 01.01.2019,
• Cheap import of steel. MoEFCC provided the opinion of AGI to SAIL which is in line with the
• Volatility in coal prices and exchange rate. interpretation of FC Act made by SAIL but still MoEFCC is insisting upon
payment of NPV for entire forest land covered under mining lease and
C. RISKS AND CONCERNS further linked the grant of EC for Kalwar-Nagur mining lease of BSP with
payment of NPV for entire forest land in mining lease.
• Internally, there have been deficiencies in the form of delays in the ramping
up of production, due to initial stabilization of the new mills. Further, higher SAIL has challenged the various notices received from different State
capital related charges on account of incremental Depreciation and Interest Govts. about payment of NPV for entire forest land in mining lease in
on new facilities have also increased expenses. respective High Courts and on the merit of the case, notices have been
stayed.
• Chiria mines in Saranda forest in Jharkhand, for which lease was granted
about seven decades ago, but the mining activities in the different leases In one such matter, Chhattisgarh High Court vide order dated 11.09.2018,
of mine could not resume due to delay in grant of Forest Clearance. Later directed MoEFCC to convene a meeting of the stakeholders to present
in 2016, MoEFCC has linked the grant of Forest Clearance for iron ore their arguments and submission on the issue related to MoEFCC's
mining leases operating in Saranda forest with approval of Management Guideline dated 01.04.2015, so that an opinion emerges at the level of
Plan for Sustainable Mining (MPSM) which was approved by MoEFCC in MoEFCC. Consequently, two meetings were held under the Chairmanship
June, 2018. of Secretary, MoEFCC on 27.11.2018 and 22.01.2019. SAIL has
submitted its representation during the second meeting. In the final hearing
Major apprehension about Chiria leases emerging from the approved held on 17th and 19th June, 2019, Hon'ble Court heard all the parties at
MPSM is that the final decision on grant of Forest Clearance for Chiria length, including pleadings made by the UOI, Chhattisgarh State
leases may not happen in near future and may be decided only after near Government and SAIL. The case has been posted for next date of hearing.
exhaustion of the mineral deposits in eastern boundary in identified mining
zones and availability of suitable technology for extraction of mineral from • Consequent to the judgement dated 2nd August, 2017 of the Hon'ble
bio-diverse forest area without damaging the forest and wildlife. Supreme Court in the matter of Common Cause, State Governments of
Odisha and Jharkhand have issued Demand Notices of `204.58 crore
Out of the available iron ore resources of about 3700 MT with SAIL, and `1759.02 crore respectively and State Government of Chhattisgarh
about 54% i.e. 2000 MT is available at a single location viz. the Chiria has issued Show Cause Notices amounting to `8,349.09 crore for
mines which is not only critical for future expansion but will also take payment of compensation under section 21(5) of the MMDR Act and for
care of existing expansion in view of other depleting resources. Keeping EC violations related to iron ore, flux & coal mines till date.
in view of already completed modernisation and expansion programme
and future expansion programme in view of National Steel Policy, 2017, In case of iron ore and flux mines, SAIL has challenged these notices in
development of a large mechanised iron ore mine at Chiria is need of the respective High Courts whereas in case of coal, the matter has been
hour and can be done only when Chiria leases are excluded from no challenged before Revisionary Authority, Ministry of Coal.
mining zone as per the approved MPSM.
• Tasra coal block was allocated to SAIL in October, 1995 by Ministry of
Consequent upon the intervention of Ministry of Steel and Govt. of Coal(MoC), Government of India. The mining lease of 4.5 Sq. Km area
Jharkhand, it was decided that a committee will be formed to suggest was transferred from BCCL to ISP-SAIL (erstwhile IISCO) on 10th June,
appropriate modifications /amendments in MPSM. Since then, two 2002. Later, on application for renewal of Tasra mining lease, Government
meetings were held during Dec, 2018 and Feb, 2019 but no conclusive of Jharkhand stated that the lease had already expired at the time of transfer
decisions in this regard have been taken so far. in the year 2002. Government of Jharkhand vide letter dated 21.04.2017
has asked MoC to clarify on the position of Tasra lease. In response,
• Stage-I FC for development of new mining pits at South and Central blocks MoC vide letter dated 06.06.2018 has requested Government of Jharkhand
of Kiriburu and Meghahatuburu mines, development of mechanized iron to take necessary actions under the provisions of MMDR Act, 1957 &
ore mine covering four leases of Chria and Capacity Expansion of Gua Rules made thereof and Coal Mining Nationalisation, Act 1972 & 1973.
mine were granted during the period October, 2010 to March, 2014 and

28
 Further, Govt. of Jharkhand vide letter dated 08.10.2018 has again referred • Input security - 100 per cent integration in iron-ore.
the matter to MoC with a request to exercise powers u/s 31 of MMDR to
give relaxation by condoning the delay in filing of application of renewal • Highly qualified professionals with experience in steel making.
and approval of transfer of Tasra lease made between BCCL and SAIL so Weaknesses
that renewal application may be processed in favour of SAIL as per the
earlier directions of MoC received vide letter dated 06.06.2018. In • Dependence on external sources for key input i.e. coking coal leads to
response, MoC on 23.04.2019 has forwarded the case to Ministry of exposure of the Company to the market risk.
Law & Justice for its opinion. On account of delay in renewal of Tasra
mining lease, development work at Tasra is getting affected. • Ageing employee mix along with a high manpower cost and relatively
low manpower productivity.
• In order to reduce its dependability on imported coking coal, with the
intervention of Ministry of Steel, two Coking Coal blocks namely Sitanala F. REVIEW OF FINANCIAL PERFORMANCE
and Parbatpur were allotted to SAIL through allotment route on 31.08.2015
1. FINANCIAL OVERVIEW OF SAIL
and 23.03.2016 respectively.
However, due to decrease in the Coal Mining Lease areas for both the SAIL achieved sales turnover of `66,267 crore during the Financial Year (FY)
coal blocks, the proposals to return the Parbatpur and Sitanala Coal Blocks 2018-19, higher by 16% as compared to corresponding period of last year
to Ministry of Coal (MoC) were approved by SAIL Board on 01.03.2018 (CPLY) turnover of `58,297 crore mainly due to increase in Net Sales
and vide letter dated 08.03.2018 and 12.03.2018, Nominated Authority, Realisation (NSR) of Saleable Steel of 5 Integrated Steel Plants (16%). During
Ministry of Coal, Government of India was intimated about returning of the FY 2018-19, the Profit before Tax and after Tax at `3,338 crore and `2,179
Parbatpur and Sitanala coal blocks respectively, with a request to refund crore as compared to loss in CPLY reflect turnaround performance of the
the amount paid including Bank Guarantee submitted by SAIL at the time Company by 540% and 552% respectively over last year. Although no provision
of allocation of blocks. SAIL had also requested MoC for allotment of for income tax has been made, the Company has created deferred tax liability
potential coking coal blocks in lieu of Parbatpur and Sitanala Coal Blocks of `1,154.23 crore. The comparative performance of major financial
in line with NITI Aayog's recommendation. parameters during the FYs 2018-19 and 2017-18 is given below:
(` crore)
On account of indigenous coking coal of required quality not being available
in sufficient quantity, SAIL is mainly depending on imported Coking Coal Particulars 2018-19 2017-18
and is pursuing the matter through Ministry of Steel for taking up with
Ministry of Coal for allocation of suitable coking coal blocks under Sales Turnover 66267.30 58297.26
Government Dispensation route in lieu of surrendered coal blocks. Less: Excise Duty - 1403.90
• Based on the temporary permission granted by Government of Jharkhand, Net Sales Turnover 66267.30 56893.36
captive coal mines lifted the sand for ongoing stowing activities. However,
after discontinuation of the same in 2013, the coal mines had to depend Profit before interest, depreciation, 10282.87 5184.37
upon private sand leases, where supply was irregular. Therefore, to exceptional/abnormal items and tax
maintain consistency of coal production as well as safety of workmen in (EBIDTA)
underground mines, on 13.12.2015, SAIL requested District Mining Officer,
Dhanbad for reservation of sand mining areas at Dungri Ghat, Het Kandra Less: Interest and Finance Charges 3154.92 2822.75
Ghat, Chasnalla Ghat and Tasra Ghat on the bank of river Damodar for
Less: Depreciation 3384.72 3064.92
sand stowing of underground mines of Chasnalla and Jitpur which were
earlier used by SAIL coal mines. Consequently, on 25.05.2017, Profit after interest, depreciation, but before 3743.23 -703.30
Government of Jharkhand forwarded the proposal for approval of Ministry exceptional/abnormal items and tax
of Coal (MoC), Government of India. In response to the query dated
13.11.2017 of MoC, information was forwarded by Jharkhand State Exceptional items -405.34 -55.64
Government to MoC on 27.08.2018. Since then the matter is being
followed with MoC for early reservation of areas of sand for stowing in Profit(+)/ Loss(-) before tax 3337.89 -758.94
favour of SAIL. Less: Provision for taxation 1159.07 -277.23
D. OUTLOOK Profit(+)/Loss(-) after Tax 2178.82 -481.71
India's economy slowed down to less than 7% in 2018-19 due to declining
Other Comprehensive Income 259.08 186.32
growth of private consumption, tepid growth in fixed investment and exports.
The new Government is expected to take up requisite measures to reverse the Total Comprehensive Income (+)/Loss(-) 2437.90 -295.39
slowdown of the economy - specifically to bring back growth of agriculture
and in industrial sectors. With continued thrust on infrastructure and related Net Worth 38152 35714
projects from Government of India, steel sector stands poised to benefit.
EBIDTA to Net sales (Operating 15.52 9.11
E. STRENGTHS & WEAKNESSES Profit Margin) (%)

Strengths Net Profit Margin (%) 3.28 -0.84

• SAIL continues to be among the leading steel producers of the Nation. Return (PAT) on Net worth (%) 5.71 -1.35

• Multi located production units give SAIL an edge over other domestic EBIDTA to average capital employed (%) 15.33 8.75
steel players.
Earning per share of Rupee 10/- each 5.27 -1.17
• A large number of new and modernised units after completion of the on-
going modernisation and expansion. Debtors' Turnover Ratio (Days) 25 24

• Well established nationwide marketing and distribution network helps in Inventory Turnover Ratio (Days) 6.40 7.63
enhancing the reach of SAIL products across the Country. Interest Coverage Ratio (No. of Times) 1.79 0.61
• Most diversified product range offered by any domestic steel company.
Current Ratio 1.36:1 1.23:1
• Availability of land bank at existing Plant/Unit locations for future brown-
Debt Equity Ratio 1.18:1 1.27:1
field expansion.

29
As compared to last year, the performance in the FY 2018-19 has improved 1.2.3 Marketing
mainly on account of higher Saleable Steel production (7%), and increase in
Net Sales Realisation of Saleable Steel of 5 Integrated Steel Plants (16%), Your Company has taken a number of initiatives during the Financial Year
sales of secondary products, lower voluntary retirement compensation, lower 2018-19 aimed at sustaining and consolidating its position as the leading
Coke Rate, etc. However, the same has been partially offset by increased steel producer of the Country.
imported coking coal rate, purchased power rate, increase in repairs & Further, with a view to widening the options that the Company makes available
maintenance expenditure, stores & spares expenditure, security expenses, to customers and to meet their needs for customized or specific application
royalty rates on Iron Ore, foreign exchange loss, higher imported coal in blend, steels, a number of new products were developed in 2018-19, including the
higher usage of Iron Ore, limestone and dolomite, provision for differential following:
royalty on Bolani and Barsua Iron Ore Mines as well as Entry Tax in UP State
consequent to the Order of Hon'ble Allahabad High Court, amortization of • Quenched and tempered Plates SAIL WR400 12 mm developed by RSP
stamp duty and registration charges and higher interest expenses and for EME segment and supplied to non defence customers for the first
depreciation charges due to capitalisation of new facilities. time.

During the current quarter compared to CPLY, the turnover at `18,323 crore • ASTMA 517 Grade F has been developed at RSP and supplied to a
was higher by 9% as compared to CPLY. The Profit before Tax and after Tax at Hydroelectric project in Himachal Pradesh.
` 712 crore and `469 crore is lower by 40% and 42% respectively over CPLY. • EN10025-6 S690QL grade PMP developed at RSP were supplied for use
The profit has occurred mainly on account of higher production of Saleable in a DRDO project.
Steel (14%), increase in sales volume of Saleable Steel (11%), increase in
sales of secondary products, decrease in salary and wages, lower VR • Railways have stopped production of ICF design coaches and shifted to
compensation, decrease in repairs & maintenance expenditure, stores & spares production of LHB Coaches. Wheels for LHB Coaches are at present
expenditure, power & fuel expenses, etc. However, the same has been partially being imported by Indian Railways. Your Company received developmental
offset by lower net sales realisation (2%) of Saleable Steel, increased imported order for 1000 LHB Wheels in the month of February, 2018 and has
coking coal rate, increase in security expenses, royalty rates on Iron Ore, successfully developed the wheel. First lot of 30 wheels was despatched
higher imported coal in blend, higher usage of coking coal, limestone and for field trials in March, 2019.
dolomite, provision for amortization of stamp duty and registration charges • Your Company received a developmental order for 400 wheels for Kolkata
and higher interest and depreciation cost. Metro in December, 2017, which has been successfully developed and
As compared to CPLY Interest Coverage Ratio and Return on Net Worth has supplied. Further, the Company has requested for regular orders from the
improved significantly during FY 2018-19. Interest Coverage Ratio has Railway Board.
improved from 0.61 as on 31.03.2018 to 1.79 as on 31.03.2019 on account • In order to meet the requirement of Defence, the Company has developed
of significant improvement in EBITDA during FY 2018-19. Return on Net Worth DMR 301 grade plates of ultra high strength for under water applications.
has improved from (-) 1.35 as on 31.03.2018 to 5.71 as on 31.03.2019 as a
result of improved profitability of the Company. • Material has been supplied for re-construction of the Mahatma Gandhi
Setu, connecting South and North Bihar and for long,considered to be
the lifeline for the people of Bihar travelling across the Ganges. As per the
1.2 Initiatives Taken by the SAIL Management
original design, the plates were required in ASTMA-709 HPS-485 70W
1.2.1 Turnaround Plan Grade, which was changed to IS2062 E 410C Grade so that material
could be sourced from indigenous sources. Your Company has supplied
In order to meet the challenges of adverse business environment, a Company- IS2062 E 410C grade plates as per stringent ITP (Inspection and Test
wide turnaround exercise named 'SAIL Uday' was initiated during 2016-17. Plan).
As a part of the 'SAIL Uday' exercise, SAIL engaged M/s. Boston Consulting
Group, a leading global Management Consultant, to study the health of the In order to introduce customers to the advantages offered by SAIL's new product
Company, suggest suitable measures for its turnaround and provide hand range, your Company formed dedicated Cross Functional Teams for marketing
holding support and assistance to SAIL for implementation of approved road products from the new mills at IISCO, Durgapur, Rourkela and Bokaro Steel
map for turn around. The study phase of 'SAIL Uday' culminated in October, Plants and engaged with new market segments. Seminars, workshops and
2017 with the submission of the 'Comprehensive Turnaround Roadmap' Report meetings were organized with end users, architects, structural designers,
by M/s. Boston Consulting Group. The Roadmap contains recommendations consultants, etc. Further, interactions were held with Plant personnel in order
encompassing various functional areas of the Company including Raw to achieve a mutual understanding of the requirements on one hand and
Materials, Production, Sales & Marketing, Supply Chain & Logistics, Manpower production parameters on the other. New mill Parallel Flanged structurals from
& Productivity, etc. SAIL is presently in the process of implementation of the the New Mill of ISP have been brought under a new brand name "NEX".
recommendations which are expected to contribute towards improvement in Your company has the largest marketing network among all steel producers in
the Company's performance. the Country. As on 1st April, 2019, SAIL's functional network of marketing
offices consists of 37 Branch Sales Offices, 10 active Customer Contact
1.2.2 Cost Control Measures
Offices, 25 Departmental Warehouses and 20 functional Consignment Agency
• Emphasis on cost reduction with improvement in productivity continued yards. Marketing effort is further supplemented through SAIL's Retail Channel
during the year through process improvement and efforts by R&D. that reaches the products of mass consumption to remote corners of the
Awareness was created at all levels to control cost in all areas of operation. Country.
SAIL had been meeting retail demands of TMT bars and Galvanised products
• Strategic actions such as optimizing coal blend, improvement in yields,
through Dealer channel. In order to deepen the reach to the end customer in
reduction in coke rate, enhanced concast production, sale of idle assets
the Retail Segment through an efficient distribution channel and provide value
and maximizing use of in-house engineering shops resulted in enhanced
addition in product, delivery and services to customers, 2-tier Dealer-
cost reduction during the year.
Distributorship channel was introduced. As on 1st April, 2019, dealer network
• During the Financial Year 2018-19, a total of 448 employees separated consisted of 1789 dealers, out of which 858 dealers have been added by the
from the services of the Company through the Voluntary Retirement 14 Distributors, appointed under 2-tier distributorship. This huge network
Scheme (VRS), 2018. spreading across the Country helps in meeting the requirements of a wide
range of customers across throughout India.

30
1.3 Funds Management
There is decrease in the borrowings of the Company from `45,409 crore as
on 31st March 2018 to `45,170 crore as on 31st March, 2019. The debt equity
ratio of the Company as on 31st March, 2019 is 1.18:1 as compared to 1.27:1
as on 31st March 2018. The interest and finance charges on operation account
during the current year at `3,155 crore are higher by `332 crore over CPLY.
The Net-worth of the Company has increased from ` 35,714 crore as on 31st
March 2018 to `38,152 crore as on 31st March 2019. M/s CARE Ratings, M/
s India Ratings and M/s Brickwork Ratings, RBI approved credit rating agencies,
assigned 'CARE AA- Outlook: Stable', 'India Ratings AA- Outlook: Stable' and
'BWR AA Outlook: Negative' ratings respectively for SAIL's long-term borrowing
programme. The trend of borrowings and Net-worth is given as under:

The Company catered to almost the entire gamut of the mild steel business
namely, Flat Products in the form of Plates, HR Coils/Sheets, CR coils/sheets,
Galvanised Plain/Corrugated Sheets and Long products comprising Rails,
Structurals, Wire-Rods and Merchant Products. In addition, Electric Resistance
Welded Pipes, Spiral Welded Pipes and Silicon Steel Sheets formed part of
the Company's rich product-mix. The product category-wise sales turnover
during the FY 2018-19 is given as under:

Products Category % of Sales value

Saleable Steel
Flat Products (including Pipes & Electrical Sheets) (a) 50
1.4 Contribution to SAIL Gratuity Trust
Long Products (b) 40
The total contribution made by the Company to SAIL Gratuity Trust upto
31.03.2019 was `3,349.09 crore. The fund size has grown to `6,277.44 Integrated Steel Plants - Mild Steel (c = a + b) 90
crore as on 31.03.2019, net of settlement done towards payment of Gratuity.
Alloy & Special Steel Plants - Alloy & Special Steel (d) 4
2. ANALYSIS OF THE FINANCIAL PERFORMANCE OF THE COMPANY
Total Saleable Steel (e = c + d) 94
2.1 Revenue from Operations
Secondary Products (Pig Iron, Scrap, Coal 6
a) Sale of Products Chemicals, etc.) (f)
(` crore) Total (g = e + f) 100
Particulars FY 2018-19 FY 2017-18 Change %
c) Sale of Services - Service Charges
Sales of Saleable Steel 62541.86 55481.04 12.73
Products (` crore)
Sales of Other Products 3725.44 2816.22 32.28 FY 2018-19 FY 2017-18 Change %
Total Sales Turnover 66267.30 58297.26 13.67
28.53 23.56 21.09
Less: Excise Duty 1403.90*
Net Sales Turnover 66267.30 56893.36 16.47 Revenue from sale of services increased by about `4.97crore during the current
year.
th
*Excise Duty is for the period upto 30 June 2017 which has been discontinued
upon implementation of Goods and Services Tax (GST) w.e.f. 1st July 2017. d) Other Operating Revenues
Turnover is net of GST as per the requirement under INDAS. (` crore)
b) Trend of Domestic Sales and Exports FY 2018-19 FY 2017-18 Change %

671.48 641.54 4.67

Other operating revenues increased by about `29.94 crore over previous year
primarily on account of higher realisation from sundries.
2.2 Other Income
(` crore)

FY 2018-19 FY 2017-18 Change %

532.82 484.45 9.98

Other income increased by about `48.37 crore over previous year mainly due
to increase in interest income from customers and bank deposits and recovery
of liquidated damages.

31
2.3 Expenditure
(` crore) (iii) Bank balances other 185 175 5.85
than (ii) above
Particulars FY 2018-19 FY 2017-18 % Change
(iv) Loans 53 63 -16.04
Raw Materials Consumed 32291 26678 21.03
(v) Other Financial Assets 2161 2772 -22.04
Employee Remuneration & 8830 8850 -0.22
Benefits (c) Current Tax Assets (Net)

Finance Cost 3155 2823 11.76 (d) Other Current Assets 5867 5634 4.14
(e) Assets classified as held 11 33 -64.71
Depreciation 3385 3065 10.44
for sale
Other Expenses 18829 16276 15.69
TOTAL CURRENT ASSETS 32249 29623 8.87
During the FY 2018-19, there was unprecedented increase in average imported
TOTAL ASSETS 116438 114190 1.97
coal prices and increase in royalty rates on iron ore which has affected the
raw material cost substantially. Further, indigenous coal prices also increased
• Property, Plant & Equipment increased by `2,751 crore mainly due to
in line with imported coal prices due to invoking of imported coal price parity
capitalization of new facilities.
by domestic coal companies. During the year, the Employees' Remuneration
& Benefits have decreased mainly due to reduction in manpower numbers on • The capital work-in-progress decreased by `2,381 crore on account of
account of natural separation and voluntary retirement scheme. Higher finance capitalization of various capital schemes in steel Plants.
cost was due to increase in interest rate of borrowings and increase in • Other Non-Current Assets increased by `278 crore.
depreciation was due to capitalization of new facilities. The increase in other • The inventories increased by `2,445 crore mainly on account of increase
expenses was on account of increase in the cost of stores & spares, repairs & in raw materials inventory due to high quantity and price increase of
maintenance, power & fuel, royalty and cess, etc. imported coking coal.
2.4 Contribution to Exchequer • Increase in trade receivables was by `625 crore.
During the year, SAIL contributed `13,520 crore to the national exchequer by • Other Current Assets increased by `233 crore, mainly on account of
way of payment of taxes and duties to various government agencies. Input Tax Credit receivable under GST law.
2.5 Non-Current / Current Assets 2.6 Non-Current/ Current Liabilities
(` crore) (` crore)
Particulars FY 2018-19 FY 2017-18 Change % Particulars FY 2018-19 FY 2017-18 Change %
Non-Current Assets Non-Current Liabilities

(a) Property, Plant and Equipment 59907 57156 4.81 (a) Financial Liabilities

(b) Capital Work-in-Progress 16014 18395 -12.95 (i) Borrowings 30803 29777 3.4
(ii) Trade Payables 7 6 6.9
(c) Investment Property 1 1 31.33
(iii) Other Financial Liabilities 1331 1179 12.8
(d) Intangible Assets 1451 1455 -0.26
(b) Long Term Provisions 4295 3973 8.1
(e) Financial Assets
(c) Deferred Tax Liabilities (Net)
(i) Investments 1585 1491 6.27
(d) Other Non-Current Liabilities 253 138 83.0
(ii) Trade Receivables
Total Non-Current Liabilities 36689 35075 4.6
(iii) Loans 564 448 25.81 Current Liabilities
(iv) Other Financial Assets 258 166 55.50 (a) Financial Liabilities
(f) Deferred Tax Assets (Net) 2898 4185 -30.74 (i) Borrowings 10631 12244 -13.2
(g) Non current tax assets (Net) 154 190 -19.27 (ii) Trade Payables 7258 7540 -3.7
(h) Other non-current assets 1357 1079 25.78 (iii) Other Financial Liabilities 14693 14170 3.7

TOTAL NON-CURRENT ASSETS 84189 84567 -0.45 (b) Other Current Liabilities 6706 7142 -6.1
(c) Provisions 2309 2304 0.2
(` crore)
Particulars FY 2018-19 FY 2017-18 Change % (d) Current Tax Liabilities (Net) - - -
Total Current Liabilities 41597 43402 -4.2
Current Assets
Total (Current+Non-Current 78286 78476 -0.2
(a) Inventories 19442 16997 14.39
Liabilities)
(b) Financial Assets • Increase in long term borrowings by 3% was due to replacement of short
(i) Trade Receivables 4495 3870 16.15 term borrowings with long term borrowings.
• The short term borrowings decreased by `1,613 crore due to repayment
(ii) Cash & cash equivalents 35 79 -56.46 of Commercial Paper and foreign currency Buyers' Credit.

32
3. PLANT-WISE FINANCIAL PERFORMANCE (PROFIT BEFORE TAX) improvement in energy & other resource consumption / services / safety and
(` crore) environment. Replacement includes mostly replacing the existing Plant &
Equipment / facility with better performance Plant & Equipment / facility; Re-
Plant/Unit 2018-19 2017-18 building of certain facilities like Coke Oven Batteries after its useful life is one
Bhilai Steel Plant (BSP) 509.37 645.88 of the types of Replacement Scheme. Accordingly, a number of AMR schemes
costing around `7,244 crore are under implementation in different Plants of
Durgapur Steel Plant (DSP) 278.62 -270.85
the Company as under:
Rourkela Steel Plant (RSP) 1472.21 -180.24 • Construction of permanent Barracks at 21 locations for Rowghat Deposit,
Bokaro Steel Plant (BSL) 1916.49 526.16 Upgradation of Stoves for Blast Furnace-4, Installation of Cast House
Defuming System in Blast Furnace No.7, Setting up of Static facility for
IISCO Steel Plant (ISP) -402.05 -988.55 Environmentally Sound Management of Polychlorinated Biphenyls and
Alloy Steels Plant (ASP) -40.64 -47.46 Installation of Electro Static Precipitators as replacement of Multi Cyclones
for all 4 nos. of Sinter Machine at Sinter Plant -II at Bhilai Steel Plant.
Salem Steel Plant (SSP) -259.00 -211.07
• Installation of a new Rotary Hearth Reheating Furnace at Wheel & Axle
Visvesvaraya Iron & Steel Plant (VISP) -75.72 -108.90 Plant, Power Evacuation for 2x20 MW New Power Plant, Replacement of
SAIL Refractory Unit (SRU) 50.71 32.62 Converter shells together with Bottom Stirring System & Installation of
Secondary Emission Control in all the three Converters of SMS and
Chandrapur Ferro Alloys Plant (CFP) 11.20 19.30 Procurement of One no. Steam Turbine Rotor Assembly for Turbo-Blower
Raw Materials Division/Central Units -123.30 -175.83 Nos. 1-4 in Old Power Plant at Durgapur Steel Plant.
• Installation of New Hot Strip Mill at Rourkela Steel Plant.
SAIL: Profit Before Tax (+)/Loss(-) 3337.89 -758.94
• Provision of Hydraulic Mudgun cum Drill Machine for Blast Furnace -1,
G. MATERIALS MANAGEMENT New Sinter Plant, Modernization of Steel Melting Shop-I, Upgradation of
A number of initiatives were taken to reduce cost of inputs and improve the Stoves of Blast Furnace No. 1, Rebuilding of Coke Oven Battery-8, Up-
performance of materials management, some of which are summarized as gradation of 6 nos. of Electro Static Precipitators of Lime Kiln, Replacement
under: of Battery cyclones with Electro Static Precipitators in Sinter Plant and
Development of alternate system for drawal of raw water from Damodar
• Inventory Reduction: Despite higher volume of purchase of Stores & River from BSL & Township at Bokaro Steel Plant.
Spares (increase of about 26% on Y-o-Y basis), inventory holding as on
31st March, 2019 was reduced to 6.51 months as compared to 7.20 • 4 MW Power Plant at Chandrapur Ferro Alloy Plant.
months as on 31st March, 2018. J. IN-HOUSE DESIGN & ENGINEERING
• Purchase Cost Reduction: By adopting multi-pronged strategy in Centre for Engineering & Technology (CET), the in-house design, engineering
purchase of Bulk Items / Centralized Procurement Agency (CPA) Items, & consultancy Unit of SAIL provides the complete range of services from
cost-savings of about `7.5 crore were achieved in areas like Ferro-alloys, concept to successful commissioning of projects in the complete value chain
etc. of integrated steel plant and its mines. With a strength of about 250 qualified,
• E-Procurement: E-tendering using Supplier Relationship Management/ trained and experienced engineers, CET has taken significant strides in mineral
Enterprise Procurement System platforms increased to 81.61% from beneficiation, pellet plant, material handling, power plant, slag granulation plant,
59.63% on Y-o-Y basis. blast furnace stoves, water management, automation and many other related
areas. The current major projects in its basket include Re-building of Coke
• Systems Improvement: Certain new/revised Policies and Procedures Oven Battery No.8 at BSL, new 3.0 MT Hot Strip Mill and Installation of 4th
including CPA Guidelines, Implementation of BCG recommendations on Slab Caster in SMS-II at RSP, Installation of New Sinter Plant and Modernization
procurement of Limestone, SAIL Procedure for Procurement on GeM, of SMS-1 at BSL, Replacement of BOF Converter Shells with New Secondary
Training on GeM and TReDS, Redesigning of SAIL Tender website, Emission Control System and Installation of New Bar Mill at DSP, etc.
e-Publishing of SAIL Tenders on CPP Portal and Review & Revision of
PCP-2014 were issued during the Financial Year 2018-19. Besides these, K. CONSULTANCY SERVICES
Sambandh Portal of Govt. of India, an online module was developed for Your Company has one of the largest pool of qualified and experienced
posting of data/information on MSME received from Plants/Units. engineers, technologists, and professionally qualified HR & training experts.
Based on its large and varied expertise and experience acquired over the last
H. FOREIGN EXCHANGE CONSERVATION six decades, SAIL, through SAIL Consultancy Division, 'SAILCON' provides
The Company endeavors to procure equipment, raw materials and other inputs design, engineering, training, technical & project management consultancy
from indigenous sources to the extent they become available to the Company, services in Iron & Steel and related areas and offers a wide range of services
at the commercially acceptable prices/costs and meet the requirements of to clients globally. SAILCON is an ISO 9001:2015 certified quality organization
the technologies being used in the Company. For incurrence of expenditure in and has actively undertaken ventures by drawing its strength from the extensive
foreign currency, besides exercising the requisite control, it is ensured that it and varied expertise embedded in SAIL plants and units and served its esteemed
is in the commercial interest of the Company. Further, the Company has also customers as per their requirements.
taken reasonable steps to ensure that all receivables in foreign exchange, Besides offering technological know-how, SAILCON also offers a wide range
which are due to the Company, are realized within contractual period. of training programmes including those involving development of skill and
expertise in the related fields. Apart from training in the technical areas,
I. PROJECT MANAGEMENT
SAILCON also provides training related to HR, Implementation of Quality
AMR SCHEMES Management System and various Management Development Programmes.
Besides Modernisation and Expansion Projects, the Addition, Modification & Technical and Management Training services are its forte and these services
Replacement(AMR) Schemes have also been taken up which are required for have been availed of by several organizations in private and public sector
management of existing operations and primarily focuses on improving the within India and abroad.
current level of efficiency and output in incremental measures. AMR Schemes "SAILCON" has executed assignments within India and abroad covering
are undertaken for improving or revamping of existing facilities for sustaining countries like Egypt, Saudi Arabia, Iran, Qatar, Thailand, Nepal, Philippines
the existing operations, balancing / debottlenecking of production processes, etc.

33
During the Financial Year 2018-19, SAILCON laid enhanced focus on taking • Compliance with various laws and regulations.
up environment management related assignments as well as training In SAIL, Internal Audit is a multi-disciplinary function which reviews, evaluates
assignments and imparted Simulator based Power Plant operation training to and appraises various systems, procedures/policies of the Company and
customers. suggests meaningful and useful improvements. It helps Management to
L. RESEARCH & DEVELOPMENT accomplish its objectives by bringing a systematic and disciplined approach
Research and Development Centre for Iron & Steel (RDCIS) of the Company to improve the effectiveness of risk management towards good corporate
is India's premier research organization in the field of ferrous metallurgy. governance.
Recognizing that development and assimilation of new technologies & process The Company is constantly taking measures to make the Internal Audit function
innovations are basic tenets for sustainable growth, SAIL has given thrust for more effective. The Internal Audit is subject to overall control environment
its R&D efforts through its well equipped R&D Centre located at Ranchi. It has supervised by Board Level Audit Committee, providing independence to the
more than three hundred diagnostic equipment and adequate pilot facilities Internal Audit function, emphasizing transparency in the systems and internal
under fifteen major laboratories. The Centre undertakes research projects controls with appropriate skill-mix of internal audit personnel, etc. Audit Plan
encompassing the entire spectrum of iron & steel starting from raw materials based on identification of key-risk areas with thrust on system/process audits
to finished products. In the year 2018-19, 90 projects were pursued and 44 and benchmarking of the best practices followed in the Plants/Units, is made
projects completed with substantial benefits to the organization. and approved by Audit Committee of the Board so as to achieve overall
Two projects are being pursued with assistance from Ministry of Steel: (a) efficiency improvement including cost reduction in operations of the Company.
Indigenous development of model based breakout prediction system for Training and development of Internal Audit Executives, bringing awareness
Continuous Casters, and (b) Development of automation system for optimum amongst auditees, converging on the pro-active role of internal audit remained
coal blending at coal handling plant of coke oven batteries. other focus areas during the year. The Audit Committee in its meetings with
the Company's Statutory Auditors also ascertains their views on the adequacy
RDCIS also pursues pioneering work in the area of development of niche of internal control systems in the Company and their observations on financial
products as per market requirements aiming at superior performance based repor ts. The Audit Committee's observations are acted upon by the
on application. During the year 2018-19, twenty products have been developed Management. The Audit Committee, inter-alia, has also monitored /reviewed
and some of the noteworthy products include resistant steels for Indian the following areas:
construction segment, Boilers and Pressure Vessels, Spring steel for auto
segments, Crane, Defence sector, etc. • Internal Audit Plan vis-à-vis performance.
In its pursuit for excellence in various research fields, RDCIS enters into • Periodic review of Enterprise Risk Management (ERM).
collaboration mode of research in specific areas with renowned research • Capital Work-in-Progress/Capital Advances.
institutions and academia. During the year 2018-19, MOU/ Collaboration • Status of Biometric attendance for preparation of salary.
agreements have been entered into with institutions and PSUs such as Indian
Oil R&D; R&D Centre at Rashtriya Ispat Nigam Ltd. and NMDC Ltd.; C-DAC, • Energy Audit.
Thiruvananthapuram; Central Building Research Institute, Roorkee. • Functioning of Vigil Mechanism in SAIL.
The efforts of RDCIS engineers and scientists have culminated in filing of 20 • Cost Audit Report.
patents and 18 copyrights (in association with SAIL Plants) during 2018-19. • Age-wise status of inventory and its liquidation plan.
As many as 95 technical papers (45 international) were presented in seminars/
• Estate related issues.
symposia/ conferences and 79 papers (24 international) were published in
prestigious journals. In addition, RDCIS undertook contract research work The Internal Audit system is supplemented by well-documented Policies,
and provided consultancy services and know-how to organisations outside Guidelines and Procedures and regular reviews are being carried out by the
SAIL. Internal Audit Department. The reports containing Significant Audit Findings
along with settlement/updated status are periodically submitted to the
M. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY Management and Audit Committee of the Board.
The Company has an efficient Internal Control systems for achieving the CAUTIONARY STATEMENT
following business objectives of the Company: Certain statements in the Management Discussion and Analysis, describing
• Efficiency of operations. the Company's objective, projections and estimates are forward looking
• Judicious utilization and protection of resources. statements and progressive within the meaning of applicable Laws and
Regulations. Actual results may vary from those expressed or implied,
• Accuracy and promptness of financial reporting. depending upon economic conditions, Government Policies and other incidental
• Compliance with the laid down policies and procedures. factors.

34
Standalone Balance Sheet
As at 31st March, 2019 (` crore)

Note No. As at As at
31st March, 2019 31st March, 2018
ASSETS
Non-current assets
(a) Property, Plant and Equipment 4 59907.26 57156.09
(b) Capital work-in-progress 5 16013.50 18395.43
(c) Investment Property 6 1.09 0.83
(d) Intangible assets 7 1450.86 1454.63
(e) Financial assets
(i) Investments 8 1584.75 1491.30
(ii) Trade receivables 9 - -
(iii) Loans 10 563.98 448.28
(iv) Other financial assets 11 258.41 166.18
(f) Deferred tax assets (net) 12 2898.38 4185.27
(g) Current tax assests (net) 13 153.63 190.31
(h) Other non-current assets 14 1356.60 1078.54
84188.46 84566.86
Current Assets
(a) Inventories 15 19441.80 16996.67
(b) Financial assets
(i) Trade receivables 16 4495.05 3869.94
(ii) Cash and cash equivalents 17 (i) 34.59 79.45
(iii) Other bank balances 17 (ii) 184.83 174.61
(iv) Loans 18 53.24 63.41
(v) Other financial assets 19 2160.88 2771.94
(c) Other current assets 20 5867.41 5634.42
32237.80 29590.44
Assets classified as held for sale 21 11.47 32.50
TOTAL ASSETS 116437.73 114189.80
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 22 4130.53 4130.53
(b) Other equity 23 34021.04 31583.14
38151.57 35713.67
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 24 30802.66 29777.16
(ii) Trade payables 25
(a) total outstanding dues of micro enterprises and small enterprises - -
(b) total outstanding dues of creditors other than micro enterprises 6.82 6.38
and small enterprises
(iii) Other financial liabilities 26 1330.62 1179.36
(b) Provisions 27 4295.41 3973.28
(c) Other non-current liabilities 28 253.19 138.33
36688.70 35074.51
Current liabilities
(a) Financial liabilities
(i) Borrowings 29 10631.22 12244.32
(ii) Trade payables 30
(a) total outstanding dues of micro enterprises and small enterprises 67.45 48.22
(b) total outstanding dues of creditors other than micro enterprises
and small enterprises 7190.54 7492.28
(iii) Other financial liabilities 31 14693.31 14170.20
(b) Other current liabilities 32 6706.17 7142.42
(c) Provisions 33 2308.77 2304.18
(d) Current tax liabilities (net) 33a - -
41,597.46 43,401.62
TOTAL EQUITY AND LIABILITIES 116437.73 114189.80
Significant Accounting Policies 3
The accompanying notes are an integral part of these standalone financial statements.
For and on behalf of Board of Directors
Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN: 03256818
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Shrenik Mehta ] [ Bedanta Bhattacharya ] [ Vipul Girotra ] [A K Sabat ]
Partner Partner Partner Partner
M. No. 063769 M. No. 060855 M. No. 084312 M. No. 030310
Place : New Delhi
Dated : May 30, 2019

35
Standalone Statement of Profit and Loss
For the year ended 31st March, 2019
(` crore)
st st
Note No. Year ended 31 March, 2019 Year ended 31 March, 2018

Income
Revenue from operations 34 66967.31 58962.36
Other income 35 532.82 484.45
Total Income 67500.13 59446.81
Expenses
Cost of materials consumed 36 32290.91 26678.81
Changes in inventories of finished goods and work in progress 37 (2716.62) 1135.49
Excise duty - 1403.90
Employee benefits expense 38 8830.34 8850.07
Finance costs 39 3154.92 2822.75
Depreciation and amortisation expense 3384.72 3064.92
Other expenses 40 18828.57 16276.24
Total expenses 63772.84 60232.18
Profit/(Loss) before Exceptional items and tax 3727.29 (785.37)
Less: Exceptional items 41 389.40 (26.43)
Profit/(Loss) before tax 3337.89 (758.94)
Tax expense
Current tax - -
Deferred tax 1,154.23 (312.96)
Earlier years 4.84 35.73
Total tax expense 1,159.07 (277.23)
Profit/(Loss) for the year 2178.82 (481.71)
Other Comprehensive income
(i) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans 329.91 275.33
Gain and losses from investments in equity instruments 57.96 8.79
designated at fair value through OCI
(ii) Income tax relating to items that will not be reclassified to profit or loss (128.79) (97.80)
Other Comprehensive Income/(Loss) for the year 259.08 186.32
Total Comprehensive Income/(Loss) for the year 2437.90 (295.39)
Earnings per equity share
Number of equity shares (face value ` 10/- each) 4130525289 4130525289
Basic and diluted earnings per share (` ) 41A 5.27 (1.17)
Significant Accounting Policies 3
The accompanying notes are an integral part of these standalone financial statements.

For and on behalf of Board of Directors

Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN: 03256818
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Shrenik Mehta ] [ Bedanta Bhattacharya ] [ Vipul Girotra ] [A K Sabat ]
Partner Partner Partner Partner
M. No. 063769 M. No. 060855 M. No. 084312 M. No. 030310
Place : New Delhi
Dated : May 30, 2019

36
Statement of Changes in Equity
For the year ended 31st March, 2019

A. Equity Share Capital (` crore)

Particulars Balance as at Changes in equity Balance as at
1st April, 2017 share capital 31st March, 2018

Equity shares with voting rights 4,130.41 - 4,130.41

Equity shares without voting rights 0.12 - 0.12
Balance as at Changes in equity Balance as at
1st April, 2018 share capital 31st March, 2019

Equity shares with voting rights 4,130.41 - 4,130.41

Equity shares without voting rights 0.12 - 0.12

B. Other Equity (` crore)

Other
comprehensive
income -
Reserves and Surplus Reserve
Capital Securities General Bonds Retained Equity Total
Reserve Premium Reserve Redemption Earnings Instruments
Reserve Reserve through Other
Comprehensive
Income

Balance as at 1st April, 2017 1.75 235.10 5,095.13 1,973.64 24,570.11 2.80 31,878.53

(Loss) for the year (481.71) (481.71)

Other comprehensive income (loss) for the year 177.53 8.79 186.32

Total comprehensive income/ (loss) for the year - - - - (304.18) 8.79 (295.39)

Transfer from bond redemption reserve (239.75) 239.75 -

Transfer to bond redemption reserve 606.80 (606.80) -

Balance as at 31st March, 2018 1.75 235.10 5,095.13 2,340.69 23,898.88 11.59 31,583.14

Balance as at 1st April, 2018 1.75 235.10 5,095.13 2,340.69 23,898.88 11.59 31,583.14

Profit/(Loss) for the year 2,178.82 2,178.82

Other comprehensive income (loss) for the year (net of tax) 214.62 44.46 259.08

Total comprehensive income/ (loss) for the year - - - - 2,393.44 44.46 2,437.90

Transfer from bond redemption reserve (730.10) 730.10 -

Transfer to bond redemption reserve 383.55 (383.55) -

Balance as at 31st March, 2019 1.75 235.10 5,095.13 1,994.14 26,638.87 56.05 34,021.04

Significant Accounting Policies 3

The accompanying notes are an integral part of these standalone financial statements

For and on behalf of Board of Directors

Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN: 03256818
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Shrenik Mehta ] [ Bedanta Bhattacharya ] [ Vipul Girotra ] [A K Sabat ]
Partner Partner Partner Partner
M. No. 063769 M. No. 060855 M. No. 084312 M. No. 030310
Place : New Delhi
Dated : May 30, 2019

37
Cash Flow Statement
For the year ended 31st March, 2019 (` crore)

For the year ended For the year ended

31st March, 2019 31st March, 2018

A. CASH FLOW FROM OPERATING ACTIVITIES

Profit/(Loss) before tax 3337.89 (758.94)
Adjustments for:
Depreciation and amortisation expenses 3384.72 3064.92
Loss/(Gain) on disposal of fixed assets (net) 45.27 72.80
Interest income (123.95) (166.09)
Dividend income (44.44) (76.16)
Finance costs 3154.92 2822.75
Unrealised Loss/(Gain) on foreign exchange fluctuations 41.69 -
Loss/(Gain) on sale of non-current investments - -
Bad debts and provision for doubtful advances/receivables 65.12 85.42
Other provisions 177.32 130.32
Unclaimed balances and excess provisions written back (146.86) (172.26)
Operating Profit/(Loss) before working capital changes 9891.68 5002.76
Changes in assets and liabilities:
Trade receivables (676.19) (861.41)
Loans, other financial assets and other assets (39.76) (1755.36)
Trade payable (282.07) 2320.32
Other financial liabilities, other liabilities and provisions 979.03 2813.08
Inventories (2606.83) (1402.56)
Cash flow from operating activities post working capital changes 7265.86 6116.83
Income tax paid (net) 35.71 40.98
Net cash flow from operating activities (A) 7301.57 6157.81
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant & equipment (including capital work-in-progress) and intangibles (3979.05) (6757.49)
Proceeds from sale/disposal of property, plant & equipment 100.71 153.09
Purchase of current and non-current investments (35.49) (100.11)
Movement in fixed deposits (net) (10.22) (6.45)
Interest received 123.95 166.09
Dividend received 44.44 76.16
Net cash flows/(used) in investing activities (B) (3755.66) (6468.71)
C. CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings (net) 1374.42 10689.68
Proceeds from short-term borrowings (net) (1613.10) (7568.72)
Finance cost paid (3352.09) (2851.54)
Net cash flows/(used) in financing activities (C) (3590.77) 269.42
Increase in cash and cash equivalents (A+B+C) (44.86) (41.48)
Cash and cash equivalents at the beginning of the year 79.45 120.93
Cash and cash equivalents at the end of the year (Note No. 17(i)) 34.59 79.45
The amendments to Ind AS 7 - Statement of Cash Flows requires the entity to provide disclosures that enables users of financial statements to evaluate changes in liabilities arising from
financial activities, including both changes arising from cash flows and non cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in Balance
Sheet for liabilities arising from financial activities, to meet the disclosure requirement. This amendment has become effective from 1st April, 2017 and the required disclosure is made
below. There is no other impact on the financial statements due to this amendment.
(` crore)
Non cash changes
As at Cash Flows Fair Value Current/Non Current As at
31.03.2018 Changes Classification 31.03.2019
Borrowings - Non Current 29777.16 1,303.22 3,329.99 (3,607.71) 30802.66
Current Maturities of Long Term Debt 3271.71 (3,271.71) - 3607.71 3607.71
Borrowings - Current 12244.32 (1,223.77) (389.33) - 10631.22
The cash flow statement has been prepared under the indirect method as set out in Ind AS-7, Statement of Cash Flows.
The accompanying notes are an integral part of these standalone financial statements.
For and on behalf of Board of Directors
Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN: 03256818
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Shrenik Mehta ] [ Bedanta Bhattacharya ] [ Vipul Girotra ] [A K Sabat ]
Partner Partner Partner Partner
M. No. 063769 M. No. 060855 M. No. 084312 M. No. 030310
Place : New Delhi
Dated : May 30, 2019

38
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
1. Corporate and General Information refundable purchase taxes, any directly attributable costs of bringing the assets
Steel Authority of India Limited (referred to as "the Company") is domiciled and to its working condition and location and present value of any obligatory
incorporated in India. The Company, a Public Sector Undertaking conferred with decommissioning costs for its intended use. Plant and Machinery also include
Maharatna status by Government of India, is one of the largest steel producers assets held under finance lease.
in the Country. The registered office of the Company is situated at Ispat Bhawan, In case of self-constructed assets, cost includes the costs of all materials used
Lodhi Road, New Delhi-110 003. The securities of the Company are listed on in construction, direct labour, allocation of overheads, directly attributable
the National, Bombay and London Stock Exchanges. borrowing costs including trial run expenses (net of revenue)
These financial statements have been approved by the Board of Directors of the Spares having useful life of more than one year and having value of ` 10 lakhs
Company in their meeting held on 30th May, 2019. or more in each case, are capitalised under the respective heads as and when
2. Basis of Preparation available for use.
2.1 Statement of Compliance Profit or loss arising on the disposal of property, plant and equipment is recognised
in the Statement of Profit and Loss.
The financial statements of the Company have been prepared on accrual basis
of accounting in accordance with the Indian Accounting Standards (Ind AS) as 3.1.2 Subsequent Cost
prescribed under Section 133 of Companies Act, 2013, as notified under the Subsequent expenditure is recognised as an increase in the carrying amount of
Companies (Indian Accounting Standards) Rules, 2015 (as amended), and other the asset or recognised as a separate asset, as appropriate, only when it is
accounting principles generally accepted in India. The Company has uniformly probable that future economic benefits derived from the cost incurred will flow
applied the accounting policies during the periods presented. to the Company and the cost of the item can be measured reliably. The carrying
2.2 Basis of Measurement amount of replaced item (s) is derecognised. .
The financial statements are prepared on a historical cost basis except for the Any repair of ` 50 lakhs or more of property, plant and equipment are recognised
following assets and liabilities which have been measured at fair value: in the carrying amount of the item if it is probable that the future economic
benefits of the costs incurred will flow to the Company. The carrying amount of
• certain financial assets and liabilities which are classified as fair value
the replaced item (s) is derecognised.
through profit and loss or fair value through other comprehensive income;
3.1.3 Depreciation
• assets held for sale, at the lower of the carrying amounts and fair value
less cost to sell; Depreciation on tangible assets and investment property is provided on straight
line method, considering residual value of 5% of the cost of the asset, over the
• defined benefit plans and plan assets.
useful lives of the assets, as specified in Schedule II of the Companies Act,
2.3 Functional and Presentation Currency 2013 except in case of Factory Buildings, Plant and Machinery, Water Supply &
The Financial Statements have been presented in Indian Rupees (`), which is Sewerage and Railway Lines & Sidings and components thereof, where useful
the Company's functional currency. All financial information presented in ` have life is determined by technical experts. The useful life assumed by the technical
been rounded off to the nearest two decimals of Crore unless otherwise stated. experts is as under:
2.4 Use of Estimates and Management Judgement
In preparing the financial statements in conformity with Company's Accounting Asset category Estimated useful life (in years)
Policies, management is required to make estimates and assumptions that affect Factory Buildings 35 to 40
reported amounts of assets and liabilities and the disclosure of contingent Plant and Machinery 10 to 40
liabilities as at the date of the financial statements, the amounts of revenue and
Water Supply & Sewerage 25 to 40
expenses during the reported period and notes to the Financial Statements.
Actual results could differ from those estimates. Any revision to such estimates Railway Lines & Sidings 35 to 40
is recognised in the period in which the same is determined.
For these classes of assets, based on technical evaluation carried out by external
2.5 Current versus Non-current classification technical experts, the Company believes that the useful lives as given above
The Company presents assets and liabilities in the balance sheet based on current/ best represent the period over which Company expects to use these assets.
non-current classification. An asset is classified as current when it is: Hence, the useful lives for these assets are different from the useful lives as
• Expected to be realised or intended to sold or consumed in normal prescribed under Part C of Schedule II of the Companies Act 2013.
operating cycle The estimated useful lives and residual values of depreciable/ amortisable assets
• Held primarily for the purpose of trading are reviewed at each year end, with the effect of any changes in estimate
• Expected to be realised within twelve months after the reporting period, accounted for on a prospective basis.
or Where the historical cost of a depreciable asset undergoes a change, the
• Cash or cash equivalent unless restricted from being exchanged or used depreciation on the revised unamortised depreciable amount is provided over
to settle a liability for at least twelve months after the reporting period the residual useful life of the asset. Depreciation on addition/ deletion during the
year is provided on pro-rata basis with reference to the month of addition/ deletion.
All other assets are classified as non-current.
Assets costing up to ` 5000/- are fully depreciated in the year in which they are
A liability is classified as current when: put to use.
• It is expected to be settled in normal operating cycle Depreciation on capital spares is provided over the useful life of the spare or
• It is held primarily for the purpose of trading remaining useful life of the mother asset, as reassessed, whichever is lower.
• It is due to be settled within twelve months after the reporting period, or 3.2 Intangible assets
• There is no unconditional right to defer the settlement of the liability for at 3.2.1 Recognition and measurement
least twelve months after the reporting period Mining Rights
All other liabilities are classified as non-current. Mining Rights are treated as Intangible Assets and all related costs thereof are
The operating cycle is the time between the acquisition of assets for processing amortised on the basis of annual production to the total estimated mineable
and their realisation in cash and cash equivalents. Deferred tax assets and reserves. In case the mining rights are not renewed, the balance related cost
liabilities are classified as non-current assets and liabilities. will be charged to revenue in the year of decision of non- renewal.
3 SIGNIFICANT ACCOUNTING POLICIES Acquisition Cost i.e. cost associated with acquisition of licenses, and rights to
A summary of the significant accounting policies applied in the preparation of explore including related professional fees, payment towards statutory forestry
the financial statements is given below. These accounting policies have been clearances, as and when incurred, are treated as addition to the Mining Rights.
applied consistently to all the periods presented in the financial statements. Other Intangible Assets
3.1 Property, Plant and Equipment Software which is not an integral part of related hardware, is treated as intangible
3.1.1 Recognition and Measurement asset and amortised over a period of five years or its licence period, whichever
Tangible Assets is less.
Property, plant and equipment held for use in the production or/and supply of Research and development
goods or services, or for administrative purposes, are stated in the balance Development expenditure is capitalised only if it can be measured reliably and
sheet at cost, less any subsequent accumulated depreciation and impairment the related asset and process are identifiable and controlled by the Company.
losses. The initial cost at cash price equivalence of property, plant and equipment Research and other development expenditure is recognised as revenue
acquired comprises its purchase price, including import duties and non- expenditure as and when incurred.

39
3.2.2 Subsequent Cost measurement of monetary items denominated in foreign currency are recognised
Subsequent expenditure is capitalised only when it increases the future economic in the Statement of Profit and Loss at period-end exchange rates.
benefits embodied in the specific asset to which it relates. All other expenditure The Company opted for accounting the exchange differences arising on reporting
is recognised in the Statement of Profit and Loss. of long term foreign currency monetary items in line with Companies (Accounting
3.3 Impairment of Non-Financial Assets Standards) Amendment Rules 2009 relating to Accounting Standard-11 notified
The Company reviews the carrying amount of its assets on each Balance Sheet by Government of India on 31st March, 2009 (as amended on 29th December
date for the purpose of ascertaining impairment indicators if any, by considering 2011), which will continue in accordance with Ind-AS 101 for all pre-existing
assets of entire one Plant as Cash Generating Unit (CGU). If any such indication long term foreign currency monetary items as at 31st March 2016. Accordingly,
exists, the assets' recoverable amount is estimated, as higher of the Net Selling exchange differences relating to long term monetary items, arising during the
Price and the Value in Use. An impairment loss is recognised whenever the year, in so far as they relate to the acquisition of fixed assets, are adjusted in the
carrying amount of an asset exceeds its recoverable amount. carrying amount of such assets.
Where an impairment loss subsequently reverses, the carrying amount of the Non-monetary items are not retranslated at period-end and are measured at
asset (or cash-generating unit) is increased to the revised estimate of its historical cost (translated using the exchange rates at the transaction date),
recoverable amount, so that the increased carrying amount does not exceed the except for non-monetary items measured at fair value which are translated using
carrying amount that would have been determined had no impairment loss been the exchange rates at the date when fair value was determined.
recognised for the asset (or cash-generating unit) in prior years. A reversal of an 3.9 Employee Benefits
impairment loss is recognised immediately in the Statement of Profit and Loss. Defined Contribution Plan
3.4 Stripping Cost A defined contribution plan is a plan under which the Company pays fixed
The stripping cost incurred during the production phase of a surface mine is contributions into a separate entity. Payments to defined contribution retirement
recognised as an asset if such cost provides a benefit in terms of improved benefit plans are recognised as an expense when employees have rendered
access to ore in future periods and following criteria are met: service entitling them to the contributions. Contributions towards Provident Funds
• It is probable that the future economic benefits (improved access to an are charged to the Statement of Profit and Loss of the period when the
ore body) associated with the stripping activity will flow to the entity, contributions to the Funds are due.
• The entity can identify the component of an ore body for which access Defined Benefit Plan
has been improved, and Defined benefit plans are the amount of the benefit that an employee will receive
• The costs relating to the improved access to that component can be on completion of services by reference to length of service, last drawn salary or
measured reliably. direct costs related to such benefits. The legal obligation for any benefits remains
The expenditure, which cannot be specifically identified to have been incurred with the Company.
to access ore is charged to revenue, based on stripping ratio as per 5 year The liability recognised for Defined Benefit Plans is the present value of the
mining plan for mines, except collieries which is based on project report. Defined Benefit Obligation (DBO) at the reporting date less the fair value of plan
3.5 Borrowing costs assets, together with adjustments for unrecognised actuarial gains or losses
Borrowing costs directly attributable to the acquisition or construction of a and past service costs. Management estimates the present value of the DBO
qualifying asset, which takes substantial period of time, are capitalised as a part annually through valuations by an independent actuary using the projected unit
of the cost of that asset, during the period of time that is necessary to complete credit method. Actuarial gains and losses are included in Statement of Profit
and prepare the asset for its intended use. and Loss or Other Comprehensive Income of the year.
The Company considers a period of twelve months or more as a substantial Remeasurement, comprising of actuarial gains and losses, the effect of the
period of time. changes to the asset ceiling (if applicable) and the return on plan assets (excluding
Transaction costs in respect of long-term borrowings are amortised over the interest), is reflected in the balance sheet with a charge or credit recognised in
tenor of respective loans using effective interest method. Other borrowing costs other comprehensive income in the period in which they occur. Remeasurement
are recognised in the Statement of Profit & Loss in the period in which these are recognised in other comprehensive income is reflected immediately in retained
incurred. earnings and will not be reclassified to the statement of profit and loss.
3.6 Inventories Short Term Employee Benefits
Raw materials, Stores & Spares and Finished/Semi-finished products (including Short term employee benefits comprise of employee costs such as salaries,
process scrap) are valued at lower of cost and net realisable value of the items bonus, ex-gratia, annual leave and sick leave which are accrued in the year in
of the respective Plants/Units. In case of identified obsolete/ surplus/ non-moving which the associated services are rendered by employees of the Company.
items, necessary provision is made and charged to revenue. The net realisable Liabilities recognised in respect of short-term employee benefits are measured
value of semi-finished special products, which have realisable value at finished at the undiscounted amount of the benefits expected to be paid in exchange for
stage only, is estimated for the purpose of comparison with cost. the related services.
Residue products and other scrap are valued at estimated net realisable value. Expenditure incurred on Voluntary Retirement Scheme is charged to the Statement
The basis of determining cost is: of Profit and Loss immediately.
Raw materials - Periodical weighted average cost 3.10 Revenue Recognition
Minor raw materials - Moving weighted average cost Revenue is measured at the fair value of consideration received or receivable.
Stores & Spares - Moving weighted average cost Sale of goods
Materials in-transit - at cost Sales are net of Goods and Services Tax (GST), rebates and price concessions.
Finished/Semi-finished products - material cost plus appropriate share of labour, Sales are recognised when it satisfy performance obligation by transferring
related overheads and duties. promised goods or services (i.e. assets) to the customers and the customers
3.7 Government Grants obtain control of those goods or services. Where the contract prices are not
finalised with government agencies, sales are accounted for on provisional basis.
Government grants are recognised when there is reasonable assurance that the
Company will comply with the conditions attaching to them and that the grants Marine export sales are recognised on:
will be received. i) the issue of bill of lading, or
Government grants are recognised in Statement of Profit and Loss on a systematic ii) negotiation of export bills upon expiry of laycan period, in cases where
basis over the periods in which the Company recognises as expenses the related realisation of material value without shipment is provided in the letters of
costs for which the grants are intended to compensate. Where the Grant relates credit of respective contracts, whichever is earlier.
to an asset value, it is recognised as deferred income, and amortised over the Export incentives under various schemes are recognised as income on certainty
expected useful life of the asset. Other grants are recognised in the statement of of realisation.
Profit & Loss concurrent to the expenses to which such grants relate/ are intended
The iron ore fines not readily useable/saleable are included in inventory and
to cover.
revenue is recognised on disposal.
Where the Company receives non-monetary grants, the asset and the grant are
Interest and dividend income
recorded gross at fair amounts and released to the income statement over the
expected useful life and pattern of consumption of the benefit of the underlying Interest income is reported on an accrual basis using the effective interest
asset. method. Dividends are recognised at the time the right to receive is established.
3.8 Foreign Currency Transactions 3.11 Adjustment pertaining to Earlier Years
Foreign currency transactions are translated into the functional currency of the Income/Expenditure relating to prior period, which do not exceed 0.5% of Turnover
Company using the exchange rates prevailing at the date of the transactions. in each case, is treated as income/expenditure of current year.
Foreign exchange gains and losses resulting from the settlement and re-

40
3.12 Claims for Liquidated Damages and Price Escalation capitalised within "Property, Plant and Equipment". These costs are depreciated
Claims for liquidated damages are accounted for as and when these are over the lives of the assets to which they relate. Any changes in closure provisions
considered recoverable by the Company, on final settlement. These are adjusted relating to closed operations are charged /credited to the Statement of Profit and
to the capital cost or recognised in Statement of Profit and Loss, as the case Loss. The amortisation or "unwinding" of the discount applied in establishing
may be on final settlement of Liquidated damages. the provisions is charged as Finance Cost.
Suppliers' and Contractors' claims for price escalation are accounted for to the 3.17 Provisions, Contingent Liabilities and Contingent Assets
extent such claims are accepted by the Company. Provisions and Contingent Liabilities
3.13 Leases A Provision is recognised when the Company has present obligation as a result
Company as a Lessee of a past event and it is probable that an outflow of resources will be required to
Finance leases settle the obligation in respect of which a reliable estimate can be made. Provisions
Finance leases, which effectively transfer to the lessee substantially all the risks are discounted to their present value, where the time value of money is material.
and benefits incidental to ownership of the leased item, are capitalised at the When some or all of the economic benefits required to settle a provision are
lower of the fair value and present value of the minimum lease payments at the expected to be recovered from a third party, the receivable is recognised as a
inception of the lease term and disclosed as leased assets. Lease payments separate asset if it is virtually certain that reimbursement will be received and
under such leases are apportioned between the finance charges and reduction the amount of the receivable can be measured reliably.
of the lease liability based on the implicit rate of return. Finance charges are Contingent liability is a possible obligation arising from past events and the
charged directly against income. Lease management fees, legal charges and existence of which will be confirmed only by the occurrence or non-occurrence
other initial direct costs are capitalised. of one or more uncertain future events not wholly within the control of the
If there is no reasonable certainty that the Company will obtain the ownership Company or a present obligation that arises from past events but is not recognised
by the end of lease term, capitalised leased assets are depreciated over the because it is not possible that an outflow of resources embodying economic
shorter of the estimated useful life of the asset or the lease term. benefit will be required to settle the obligations or reliable estimate of the amount
Operating leases of the obligations cannot be made. The Company discloses the existence of
contingent liabilities in Other Notes to Financial Statements.
Assets acquired on leases where a significant portion of risk and rewards of
ownership are retained by the lessor are classified as operating leases. Lease In cases where the possible outflow of economic resources as a result of present
rental are charged to statement of profit and loss on straight-line basis except obligation is considered improbable or remote, no Provision is recognised or
where scheduled increase in rent compensate the lessor for expected inflationary disclosure is made.
costs. Contingent Assets
Company as a Lessor Contingent assets usually arise from unplanned or other unexpected events that
Finance leases give rise to the possibility of an inflow of economic benefits. Contingent Assets
Leases which effectively transfer to the lessee substantially all the risks and are not recognised though are disclosed, where an inflow of economic benefits
benefits incidental to ownership of the leased item are classified and accounted is probable.
for as finance lease. Lease rental receipts are apportioned between the finance 3.18 Income Taxes
income and capital repayment based on the implicit rate of return. Contingent Tax expense recognised in statement of profit and loss comprises the sum of
rents are recognised as revenue in the period in which they are earned. deferred tax and current tax not recognised in Other Comprehensive Income
Operating leases (OCI) or directly in equity.
Leases in which the Company does not transfer substantially all the risks and Current income tax is measured at the amount expected to be paid to the tax
rewards of ownership of an asset are classified as operating leases. The authorities in accordance with the Indian Income-tax Act. Current income tax
respective leased assets are included in the balance sheet based on their nature. relating to items recognised outside statement of profit and loss is recognised
Rental income is recognized on straight-line basis over the lease term except either in OCI or in equity.
where scheduled increase in rent compensates the Company with expected Deferred income taxes are calculated using the liability method. Deferred tax
inflationary costs. liabilities are generally recognised in full for all taxable temporary differences.
3.14 Investment Properties Deferred tax assets are recognised to the extent that it is probable that the
Investment properties are properties held to earn rentals and/or for capital underlying tax loss, unused tax credits (MAT Credit entitlement) or deductible
appreciation. Investment properties are measured initially at cost including temporary difference will be utilised against future taxable income. Unrecognised
transaction costs. Subsequent to initial recognition, investment properties are deferred tax assets are re-assessed at each reporting date and are recognised
stated at cost less accumulated depreciation and impairment losses. Any gain to the extent that it has become probable that future taxable profits will allow the
or loss on disposal of investment property is determined as the difference between deferred tax asset to be recovered.
net disposal proceeds and the carrying amount of the property and is recognised Deferred tax assets and liabilities are measured at the tax rates that are expected
in the Statement of Profit and Loss. to apply in the year when the asset is realised or the liability is settled, based on
3.15 Non-current assets held for sale tax rates (and tax laws) that have been enacted or substantively enacted at the
Company classifies a non-current asset as held for sale if its carrying amount reporting date. Deferred tax relating to items recognised outside statement of
will be recovered principally through a sale transaction. This condition is regarded profit and loss is recognised either in OCI or in equity.
as met only when the asset is available for immediate sale in its present condition 3.19 Cash and Cash Equivalents
and its sale is highly probable. Cash and cash equivalents comprise cash on hand and demand deposits,
Non-current assets including discontinued operations, classified as held for sale together with other short-term highly liquid investments (original maturity less
are measured at the lower of the carrying amounts and fair value less costs to than 3 months) that are readily convertible into known amount of cash and are
sell and presented separately in the financial statements. Once classified as subject to an insignificant risk of changes in value.
held for sale, the assets are not subject to depreciation or amortisation. 3.20 Equity and Reserves
Any profit or loss arising from the sale or re-measurement of discontinued Share Capital represents the nominal value of shares that have been issued.
operations is presented as part of a single line item in statement of profit and Securities premium includes any premium received on issue of Share Capital.
loss. Components of other equity include the following:
3.16 Mine Closure • Re-measurement of defined benefit liability comprises the actuarial gain
Mine Closure Provision includes the dismantling and demolition of infrastructure, or loss from changes in demographic and financial assumptions and return
the removal of residual materials and the remediation of disturbed areas for on plan assets.
mines. This provision is based on all regulatory requirements and related • Bond Redemption Reserve.
estimated cost based on best available information. Mine closure costs are
provided for in the accounting period when the obligation arises based on the • Other transactions recorded directly in Other Comprehensive Income.
net present value of the estimated future costs of restoration to be incurred • Retained earnings include all current and prior period retained profits
during the life of the operation and post closure. 3.21 Financial Instruments
The initial close-down and restoration provision is capitalised within "Property, Recognition, initial measurement and de-recognition
Plant and Equipment". Subsequent movements in the close-down and restoration Financial assets and financial liabilities are recognised and are measured initially
provisions for on-going operations, including those resulting from new at fair value adjusted by transactions costs, except for those financial assets
disturbance related to expansions or other activities qualifying for capitalisation, which are classified at Fair Value through Profit & Loss (FVTPL) at inception.
updated cost estimates, changes to the estimated lives of operations, changes
Financial assets are derecognised when the contractual rights to the cash flows
to the timing of closure activities and revisions to discount rates are also
from the financial asset expire, or when the financial asset and all substantial

41
 risks and rewards are transferred. A financial liability is derecognized when it is 3.23 Segment reporting
extinguished, discharged, cancelled or expires. The Company has 8 operating/reportable segments: the five integrated steel
Classification and subsequent measurement of financial assets plants and three alloy steel plants, being separate manufacturing units, have
For the purpose of subsequent measurement, financial assets are classified into been considered reportable segments. In identifying these operating segments,
the following categories upon initial recognition: management generally considers the Company's separately identifiable
• amortised cost manufacturing operations representing its main operations.
• financial assets at fair value through profit or loss (FVTPL) Each of these operating segments is managed separately as each requires
different technologies, raw materials and other resources. All inter-segment
• financial assets at fair value through other comprehensive income (FVOCI)
transfers are carried out at arm's length prices based on prices charged to
All financial assets except for those at FVTPL are subject to review for impairment unrelated customers in standalone sales of identical goods or services.
at least at each reporting date.
In addition, corporate assets which are not directly attributable to the business
Amortised cost activities of any operating segment are not allocated to a segment. This primarily
A financial asset is measured at amortised cost using effective interest rates if applies to the Company's administrative head office and mining operations.
both of the following conditions are met: There have been no changes from prior periods in the measurement methods
a) the financial asset is held within a business model whose objective is to used to determine reported segment profit or loss.
hold financial assets in order to collect contractual cash flows; and 3.24 Significant Judgements, Assumptions, and Estimations in applying Accounting
b) the contractual terms of the financial asset give rise on specified dates to Policies
cash flows that are solely payments of principal and interest on the principal 3.24.1 Classification of Leases
amount outstanding.
The Company enters into leasing arrangements for various assets. The
The Company's cash and cash equivalents, trade and most other receivables classification of the leasing arrangement as a finance lease or operating lease is
fall into this category of financial instruments. based on an assessment of several factors, including, but not limited to, transfer
Financial assets at FVTPL of ownership of leased asset at end of lease term, lessee's option to purchase
Financial assets at FVTPL include financial assets that are either do not meet the and estimated certainty of exercise of such option, proportion of lease term to
criteria for amortised cost classification or that are equity instruments held for the asset's economic life, proportion of present value of minimum lease payments
trading or that meet certain conditions and are designated at FVTPL upon initial to fair value of leased asset and extent of specialized nature of the leased asset.
recognition. All derivative financial instruments also fall into this category. Assets 3.24.2 Close-down and Restoration Obligations
in this category are measured at fair value with gains or losses recognized in Close-down and restoration costs are normal consequence of mining or
profit or loss. The fair values of financial assets in this category are determined production, and majority of close-down and restoration expenditure are incurred
by reference to active market transactions or using a valuation technique where in the years following the closure of mine, although the ultimate cost to be
no active market exists. incurred is uncertain, the Company estimate their costs using current restoration
Financial assets at FVOCI techniques.
FVOCI financial assets are either debt instruments that are managed under hold 3.24.3 Recognition of Deferred Tax Assets
to collect and sell business model or are non-trading equity instruments that are The extent to which deferred tax assets can be recognized is based on an
irrevocable designated to this category at inception. assessment of the probability of the Company's future taxable income against
FVOCI financial assets are measured at fair value. Gains and losses are recognized which the deferred tax assets can be utilized. In addition, significant judgement
in other comprehensive income, except for interest and dividend income, is required in assessing the impact of any legal or economic limits.
impairment losses and foreign exchange differences on monetary assets, which 3.24.4 Inventories
are recognized in statement of profit or loss.
The Company estimates the cost of inventories taking into account the most
Classification and subsequent measurement of financial liabilities reliable evidence, such as cost of materials and overheads considered attributable
Financial liabilities are measured subsequently at amortized cost using the to the production of such inventories including actual cost of production, etc.
effective interest method, except for financial liabilities held for trading or Management also estimates the net realisable values of inventories, taking into
designated at FVTPL, that are carried subsequently at fair value with gains or account the most reliable evidence available at each reporting date. The future
losses recognized in profit or loss. All derivative financial instruments are realisation of these inventories may be affected by future technology or other
accounted for at FVTPL. market-driven changes that may reduce future selling prices.
Embedded Derivatives 3.24.5 Defined Benefit Obligation (DBO)
Derivatives embedded in non-derivative host contracts are treated as separate Employee benefit obligations are measured on the basis of actuarial assumptions
derivatives when they meet the definition of a derivative, their risks and which include mortality and withdrawal rates as well as assumptions concerning
characteristics are not closely related to those of the host contracts and the future developments in discount rates, medical cost trends, anticipation of future
contracts are not measured at FVTPL. salary increases and the inflation rate. The Company considers that the
Impairment of Financial Assets assumptions used to measure its obligations are appropriate. However, any
In accordance with Ind AS 109, the Company applies Expected Credit Loss changes in these assumptions may have a material impact on the resulting
(ECL) model for measurement and recognition of impairment loss for financial calculations.
assets. 3.24.6 Fair Value Measurements
ECL is the difference between all contractual cash flows that are due to the The Company applies valuation techniques to determine the fair value of financial
Company in accordance with the contract and all the cash flows that the Company instruments (where active market quotes are not available) and non-financial
expects to receive. assets. This involves developing estimates and assumptions consistent with
Trade Receivables the market participants to price the instrument. The Company's assumptions
The Company applies approach as specified in Indian Accounting Standards are based on observable data as far as possible, otherwise on the best information
(Ind AS) 109 Financial Instruments, which requires expected lifetime losses to available. Estimated fair values may vary from the actual prices that would be
be recognised from initial recognition of receivables. achieved in an arm's length transaction at the reporting date.
Other Financial Assets 3.24.7 Provisions and Contingencies
For recognition of impairment loss on other financial assets and risk exposure, The assessments undertaken in recognising provisions and contingencies have
the Company determines whether there has been a significant increase in the been made in accordance with Indian Accounting Standards (Ind AS) 37,
credit risk since initial recognition. 'Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the
likelihood of the contingent events is applied best judgement by management
Offsetting financial instruments
regarding the probability of exposure to potential loss.
Financial assets and liabilities are offset and the net amount reported in the
3.24.8 Mine Closure and Restoration Obligations
balance sheet when there is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net basis or realise the asset and Environmental liabilities and Asset Retirement Obligation (ARO): Estimation of
settle the liability simultaneously. The legally enforceable right must not be environmental liabilities and ARO require interpretation of scientific and legal
contingent on future events and must be enforceable in the normal course of data, in addition to assumptions about probability and future costs.
business and in the event of default, insolvency or bankruptcy of the counterparty. 3.24.9 Useful lives of depreciable/ amortisable assets (tangible and intangible)
3.22 Investments in subsidiaries, joint ventures and associates Management reviews its estimate of the useful lives of depreciable/ amortisable
The Company has accounted for its subsidiaries and associates, joint ventures assets at each reporting date, based on the expected utility of the assets.
at cost in its standalone financial statements in accordance with Ind AS- 27, Uncertainties in these estimates relate to actual normal wear and tear that may
Separate Financial Statements. change the utility of plant and equipment.

42
 Notes to Standalone Financial Statements for the Year ended 31st March, 2019
4: PROPERTY, PLANT AND EQUIPMENT
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2018 2019 2018 Year 2019 2019 2018

A. Plant, Mines & Others

Land
-Freehold land 291.64 13.33 - 304.97 0.87 (0.02) - 0.85 304.12 290.77
-Leasehold land 1275.96 26.19 4.27 1297.88 284.54 143.61 3.97 424.18 873.70 991.42
Buildings and related equipments 5297.52 55.43 151.02 5201.93 1793.18 168.11 (1.45) 1962.74 3239.19 3504.34
Plant and machinery
-Steel plant 76201.26 5840.00 156.16 81885.10 28346.52 2593.05 170.42 30769.15 51115.95 47854.74
-Others - owned 3060.27 97.78 51.74 3106.31 2003.22 121.51 53.48 2071.25 1035.06 1057.05
-Others - Leasehold (Refer note (ii)) 1616.86 41.36 - 1658.22 763.40 105.79 - 869.19 789.03 853.46
Furniture and fixtures 130.63 5.19 (0.56) 136.38 97.54 6.35 (1.34) 105.23 31.15 33.09
Vehicles 1355.05 30.27 9.13 1376.19 822.08 67.67 8.78 880.97 495.22 532.97
Office equipments 61.19 0.85 0.74 61.30 49.93 2.35 0.67 51.61 9.69 11.26
Miscellaneous articles 347.78 21.62 4.21 365.19 222.92 15.10 3.57 234.45 130.74 124.86
Roads, Bridges & Culverts 401.22 35.65 0.52 436.35 255.92 38.00 0.18 293.74 142.61 145.30
Water Supply & Sewerage 629.66 37.35 0.93 666.08 343.98 38.01 0.93 381.06 285.02 285.68

43
EDP Equipments 420.09 15.10 2.70 432.49 364.78 11.46 2.47 373.77 58.72 55.31
Railway Lines and Sidings 809.72 31.55 (2.79) 844.06 251.99 20.57 0.09 272.47 571.59 557.73
Sub-total 'A' 91898.85 6251.67 378.07 97772.45 35600.87 3331.56 241.77 38690.66 59081.79 56297.98
Figures for the previous year 81090.65 11435.39 627.19 91898.85 33068.36 2968.86 436.35 35600.87 56297.98
B. SOCIAL FACILITIES
Land
-Freehold land 10.89 - - 10.89 - - - - 10.89 10.89
-Leasehold land 10.00 - - 10.00 6.08 0.12 - 6.20 3.80 3.92
Buildings and related equipments 745.08 15.34 0.02 760.40 334.61 27.03 0.04 361.60 398.80 410.47
Plant and machinery - others 176.11 4.64 0.19 180.56 104.89 6.99 0.18 111.70 68.86 71.22
Furniture and fixtures 26.75 0.67 0.75 26.67 20.47 1.30 0.47 21.30 5.37 6.28
Vehicles 11.27 0.10 0.14 11.23 10.03 0.22 0.18 10.07 1.16 1.24
Office equipments 4.51 0.09 0.06 4.54 3.89 0.17 0.04 4.02 0.52 0.62
Miscellaneous articles 231.23 8.45 2.60 237.08 145.18 12.00 2.32 154.86 82.22 86.05
Roads, Bridges & Culverts 135.96 5.28 - 141.24 98.60 11.83 - 110.43 30.81 37.36
Water Supply & Sewerage 300.85 3.09 0.05 303.89 131.27 7.93 (0.43) 139.63 164.26 169.58
EDP equipments 11.38 0.74 1.12 11.00 9.81 0.38 1.03 9.16 1.84 1.57
Sub-total 'B' 1664.03 38.40 4.93 1697.50 864.83 67.97 3.83 928.97 768.53 799.20
Figures for the previous year 1492.40 177.50 5.87 1664.03 809.79 59.39 4.35 864.83 799.20
C. Property, plant and equipment retired from active use
Assets retired from active use 58.91 6.61 8.58 56.94 - - - - 56.94 58.91
Figures for the previous year 57.17 35.27 33.53 58.91 - - - - 58.91
Total ('A'+'B'+C') 93621.79 6296.68 391.58 99526.89 36465.70 3399.53 245.60 39619.63 59907.26 57156.09
Figures for the previous year 82640.22 11648.16 666.59 93621.79 33878.15 3028.25 440.70 36465.70 57156.09
Notes to Standalone Financial Statements for the Year ended 31st March, 2019

4: PROPERTY, PLANT AND EQUIPMENT (CONTD.)

Note : Allocation of Depreciation of PPE, Intangible assets and Investment property

(` crore)

As at 31st At at 31st
March, 2019 March, 2018

(a) Charged to Profit & Loss Account 3384.72 3064.92

(b) Amortisation on stamp duty and registration charges-refer note 41 52.91 -

(c) Charged to expenditure during construction 4.04 4.15

3441.67 3069.07

(i) Contractual obligations

Refer note 48.1 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

(ii) Land:

(a) Includes 67305.79 acres (68019.40 acres as on 31st March, 2018) owned / possessed / taken on lease by the Company, in respect of which title/lease deeds are pending for
registration.

(b) Includes 34,484.73 acres (34,576.05 acres as on 31st March, 2018) in respect of which title is under dispute.

(c) 9,737.83 acres (9367.80 acres as on 31st March, 2018) transferred/agreed to be transferred or made available for settlement to various Joint Ventures / Central / State / Semi-
Government authorities, in respect of which conveyance deeds remain to be executed/registered.

(d) 5,832.01 acres (6187.95 acres as on 31st March, 2018) given on lease to various agencies/employees/ex-employees.

(e) Includes 4486.75 acres (4,070.09 acres as on 31st March, 2018) under unauthorised occupation.

(f) 1,770.89 acres (1,762.92 acres as on 31st March, 2018) of Land which is not in the actual possession, shown as deemed possession.

(g) ` 53.70 crore is lying under deposits (in respect of land already acquired) with the District & Sessions Judge, Bokaro during the year 2007 towards compensation payable to
land losers.

(h) Includes 21.13 acres freehold land notified for acquisition by Government of Jharkhand vide Gazette notification no. 42 & 43 dated 26th August, 2009, determining compensation
of `13.91 crore only for 15.62 acres. Remaining 5.51 acres are under dispute. Pending approval from Ministry of Steel, Government of India, no effect of above has been given
in the accounts.

(i) 1000.00 acres (836.00 acres as on 31st March, 2018) given to M/s Bokaro Power Supply Corporation Ltd. (BPSCL) under right to use.

(j) Included in the land,1.8955 acres acquired by dedicated Freight Corridor Corporation of India Limited vide notification number SO 1125( E ) dated 27.04.2015.

Necessary accounting will be done on approval of acquisition by Board of Directors and determination of sale consideration.

(k) ` 0.06 crore is lying under deposits (in respect of land already acquired) with the District & Sessions Judge, Salem during the year 2013 towards compensation payable to land
losers.

(iii) Other Assets:

(a) Buildings include net block of ` 20.15 crore as on 31st March, 2019 (` 21.23 crore as on 31st March, 2018) for which conveyance deed is yet to be registered in the name
of the Company.

(b) Includes 6,095 (7107 as on 31st March, 2018), residential quarters/houses under unauthorised occupation.

44
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st March, 2019 As at 31st March, 2018

5: CAPITAL WORK IN PROGRESS

Steel Plants & Units 15785.16 18168.23
Township 100.84 91.56
Ore Mines and Quarries 340.08 314.32
16226.08 18574.11
Less: Provisions 236.13 15989.95 215.26 18358.85
Construction stores and spares 19.95 24.65
Less: Provision for non-moving items 3.24 16.71 3.18 21.47
Expenditure during construction pending allocation (Note 5.1) 6.84 15.11
16013.50 18395.43

5.1: EXPENDITURE DURING CONSTRUCTION PENDING ALLOCATION

Opening balance (a) 15.11 11.09

Expenditure incurred during the year

Employees' Remuneration & Benefits

Salaries & Wages 79.29 90.30

Company's contribution to provident fund 3.46 3.86

Travel concession 2.42 2.96

Welfare expenses 0.07 0.07

Gratuity 1.14 86.38 3.53 100.72

Other expenses

Technical consultants' fees & know-how 3.11 4.47

Power & Fuel 76.25 76.29

Other expenses 2.92 6.19

Interest & Finance charges 703.74 668.52

Depreciation 4.04 790.06 4.15 759.62

876.44 860.34

Less: Recoveries

Interest Earned 0.01 0.27

Liquidated damages - 0.22

Hire charges 0.29 0.45

Sundries 2.68 2.98 8.86 9.80

Net expenditure during the year (b) 873.46 850.54

Total (a)+(b) 888.57 861.63

Less : Amount allocated to Property, plant and 881.73 846.52

equitpment / Capital Work-in-progress

Balance carried forward 6.84 15.11

45
 Notes to Standalone Financial Statements for the Year ended 31st March, 2019
6: INVESTMENT PROPERTIES
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2018 2019 2018 Year 2019 2019 2018

A. BUILDINGS
Buildings 1.45 0.49 - 1.94 0.62 0.03 (0.20) 0.85 1.09 0.83
Sub-total 'A' 1.45 0.49 - 1.94 0.62 0.03 (0.20) 0.85 1.09 0.83
Figures for the previous year 1.45 - - 1.45 0.59 0.03 - 0.62 0.83

(i) Contractual obligations

There are no contractual obligation to purchase, construct or develop investment property or for its repair, maintenance or enhancement.
(ii) Amount recognised in profit and loss for investment properties
(` crore)
As at 31st At at 31st
March, 2019 March, 2018
Rental income 1.70 1.52
Direct operating expenses that generated rental income*
Direct operating expenses that did not generate rental income* - -

46
Profit from leasing of investment properties before depreciation 1.70 1.52
Depreciation 0.03 0.03
Profit from leasing of investment properties 1.67 1.49
*Direct expenses in relation to investment properties cannot be separately identified and are expected to be insignificant.
(iii) Leasing arrangements
Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Minimum lease payment receivable under non-cancellable leases
of investment property are as follows:
(` crore)
As at 31st At at 31st
March, 2019 March, 2018
Within one year 1.55 1.37
Later than one year but not later than 5 years 6.22 5.42
Later than 5 years 3.45 4.11
11.22 10.90
(iv) Fair value
Fair value of Investment properties as on 31st March, 2019 is `30.71 crore (`20.53 crore as on 31st March, 2018)
(v) Estimation of fair value
The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety
of sources including:
a) Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences.
b) Discounted cash flow projections based on reliable estimates of future cash flows.
c) Circle rate of the property as provided by State Government.
 Notes to Standalone Financial Statements for the Year ended 31st March, 2019
7: INTANGIBLE ASSETS
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION** NET BLOCK

As at Additions Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2018 2019 2018 Year 2019 2019 2018

A. PLANTS, MINES & OTHERS

Computer Software* 103.28 0.48 - 103.76 98.81 1.16 0.01 99.96 3.80 4.47
Mining Rights 1792.30 31.12 - 1823.42 342.17 40.94 6.73 376.38 1447.04 1450.13
Sub-total 'A' 1895.58 31.60 - 1927.18 440.98 42.10 6.74 476.34 1450.84 1454.60
Figures for the previous year 1923.50 9.62 37.54 1895.58 401.02 40.76 0.80 440.98 1454.60
B. SOCIAL FACILITIES
Computer Software* 0.62 - - 0.62 0.59 0.01 - 0.60 0.02 0.03
Sub-total 'B' 0.62 - - 0.62 0.59 0.01 - 0.60 0.02 0.03
Figures for the previous year 0.62 - - 0.62 0.56 0.03 - 0.59 0.03
Total ('A'+'B') 1896.20 31.60 - 1927.80 441.57 42.11 6.74 476.94 1450.86 1454.63
Figures for the previous year 1924.12 9.62 37.54 1896.20 401.58 40.79 0.80 441.57 1454.63

*Computer software consists of capitalized development costs being an internally generated intangible assets.

47
**All ammortization changes are included within depreciation and ammortization expenses.
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
8. INVESTMENTS - NON CURRENT
No of Shares Amount (` in crore)
As at 31st As at 31st As at 31st As at 31st
March, 2019 March, 2018 March, 2019 March, 2018

Investments carried at cost

In Subsidiaries
SAIL Refractory Company Limited 50,000 50,000 0.05 0.05
SAIL- Jagdishpur Power Plant Limited 50,000 50,000 0.05 0.05
SAIL Sindri Projects Limited 50,000 50,000 0.05 0.05
Chattisgarh Mega Steel Limited 37,000 37,000 0.04 0.04
0.19 0.19
In Associates (unquoted)
Almora Meganasite Limited (Face value- `100/share) 40,000 40,000 0.40 0.40
0.40 0.40
In Joint ventures (unquoted)
NTPC- SAIL Power Company Limited 49,02,50,050 49,02,50,050 490.25 490.25
Bokaro Power Supply Company Pvt Limited 12,40,25,000 12,40,25,000 124.03 124.03
Bhilai Jaypee Cement Limited 9,87,18,048 9,87,18,048 52.51 52.51
SAIL- Bansal Service Centre Limited 32,00,000 32,00,000 3.20 3.20
Mjunction services limited 40,00,000 40,00,000 4.00 4.00
S&T Mining Company Private Limited 1,29,41,400 1,29,41,400 12.94 12.94
SAIL MOIL Ferro Alloy Pvt. Ltd. 1,00,000 1,00,000 0.10 0.10
International Coal Ventures Pvt. Ltd. 69,37,59,279 69,37,59,279 693.76 693.76
SAIL-SCL Kerala Ltd. 1,30,17,801 1,30,17,801 18.75 18.75
SAIL-SCI Shipping Private Limited 1,00,000 1,00,000 0.10 0.10
SAIL RITES Bengal Wagon Industry Pvt. Ltd. 2,40,00,000 2,40,00,000 24.00 24.00
SAIL-KOBE Iron India Pvt. Ltd. 2,50,000 2,50,000 0.25 0.25
Prime Gold -SAIL JVC Ltd. 46,80,000 46,80,000 4.68 4.68
North Bengal Dolomite Ltd (Face value-`100/share) 97,900 97,900 0.98 0.98
Romelt SAIL ( India ) Limited 63,000 63,000 0.06 0.06
Bastar Railway Pvt Ltd 3,52,32,600 10,500 35.23 0.01
NMDC SAIL Ltd 24,500 24,500 0.02 0.02
SAIL-Bengal Alloy Castings Pvt. Ltd. 10,000 10,000 0.01 0.01
VSL-SAIL JVC LIMITED 12,97,780 12,97,780 1.30 1.30
GEDCOL SAIL Power Corporation Limited 2,60,000 - 0.26 -
1,466.43 1,430.95
Total (A) 1,467.02 1,431.54
Investments carried at fair value through other comprehensive income
Quoted equity
HDFC Limited ( Face value - ` 2/share) 60,000 60,000 11.81 10.95
HDFC Bank Limited ( Face value - ` 2/share) 2,500 2,500 0.58 0.47
ICICI Bank Limited ( Face value - ` 2/share) 1,57,300 1,57,300 6.30 4.38
MSTC Limited 3,20,000 3,20,000 3.65 4.70
22.34 20.50
Unquoted equity
TRL Krozaki Refractories Limited 22,03,150 22,03,150 37.21 34.05
Indian Potash Limited 3,60,000 3,60,000 70.54 17.57
Haridaspur Paradeep Railway Co Ltd 50,00,000 50,00,000 5.00 5.00
Cement & Allied Products (Bihar) Limited 2 2 - -
Chemical & Fertilizer Corporation (Bihar) Limited 1 1 - -
Bhilai Power Supply Company Limited 5 5 - -
IISCO Ujjain Pipe & Foundary Company Limited 30,00,000 30,00,000 3.00 3.00
(under liquidation)#
UEC SAIL Information Technology Limited* 1,80,000 1,80,000 0.18 0.18
Bihar State Finance Corporation (Face value `100/share) 500 500 0.01 0.01
115.94 59.81

48
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
8. INVESTMENTS - NON CURRENT (Contd.)
No of Shares Amount (` in crore)
As at 31st As at 31st As at 31st As at 31st
March, 2019 March, 2018 March, 2019 March, 2018

In Co-operative society

Bokaro Steel Employees' Co.-operative Credit Society 1,16,500 1,16,500 0.12 0.12

Bokaro Steel City Central Consumers' Co-operative Society 250 250 - -

NMDC Meghahatuburu Employees' Co-operative society (Face value ` 100/share) 25 25 - -

DSP Employees'Co-operative society limited (Face value ` 100/share) 1,377 1,377 0.01 0.01

Bolani Ores Employees' Consumer co-operative society limited (Face value ` 25/share) 200 200 - -

IISCO Employees Primary Co-operative society (Face value ` 20/share) 23,000 23,000 0.05 0.05

0.18 0.18

Total (B) 138.46 80.49

Grand total (A+B) 1,605.48 1,512.03

Provision for impairment in the value of investments 20.73 20.73

Net investment 1,584.75 1,491.30

Aggregate amount of quoted investments 22.34 20.50

(market value thereof)

Aggregate amount of unquoted investments 1,583.14 1,491.53

Aggregate amount of impairment in value of investments 20.73 20.73

1,584.75 1,491.30

All equity shares have face value `10 each unless otherwise stated.

*Entity is under liquidation, therefore, not considered as joint venture despite of joint agreement between shareholders.

#Entity is under liquidation therefore not in the control of the Company.

9: TRADE RECEIVABLES - NON CURRENT

(` crore)
st
As at 31 As at 31st
March, 2019 March, 2018

Considered good - Secured - -

Considered good - Unsecured - -
Receivables - credit impaired 7.83 7.83
7.83 7.83
Provision for doubtful receivables 7.83 7.83
- -
* Receivables due from directors and officers of the Company is nil (previous year nil)

10: LOANS - NON CURRENT

Considered good - Secured - -

Considered good - Unsecured
Security deposits (including provision of of `3.20 crore) 103.47 101.81
Loan to employees 95.45 124.53
Loans to related parties 4.90 -
Loan to others 363.36 567.18 225.14 451.48
Loans - credit impaired - -
567.18 451.48
Less : Provision for doubtful loans 3.20 3.20
563.98 448.28
* Receivables include amounts due from Directors - nil (previous year nil)

49
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

11: OTHER FINANCIAL ASSETS - NON CURRENT

Derivative assets 172.29 76.73

Advance for purchase of shares 3.54 3.54

Claims recoverable 7.89 7.89

Receivable - others 81.91 76.95

Receivables from employees 0.08 0.09

Loans and advances to related parties 10.53 10.53

Less: Provision for doubtful related party advances 10.53 - 2.53 8.00

Fixed deposits with maturity period more than 12 months 0.19 0.19

265.90 173.39

Less: Provision for doubtful assets 7.49 7.21

258.41 166.18

12: DEFERRED TAX ASSETS (NET)

Tax effect of items constituting deferred tax liabilities

Diff between book and tax depreciation 10,115.99 8,996.20

Amortisation of financial assets/liabilities 17.40 28.39

Fair value adjustment through OCI 23.96 10157.35 10.46 9035.04

Tax effect of items constituting deferred tax assets

Retirement benefits - 8.73

Finance lease obligations 94.69 85.64

Derivative adjustments 45.13 54.81

Unpaid taxes and duties to be allowed on payment 1121.70 1156.38

Losses available for offsetting against future taxable income 10323.46 9985.34

Others 418.92 12003.90 877.58 12168.48

Tax credit (minimum alternative tax) 1051.83 1051.83

Deferred tax (assets) /liabilities (net) 2898.38 4185.27

50
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
12: DEFERRED TAX ASSETS (CONTD.)
Deferred taxes arising from temporary differences and unused tax losses for year ended 31st March, 2019 are summarized as follows:
(` crore)

Deferred tax assets/(liabilities) As at Recognized Recognized As at

April 1, 2018 in profit or in other March 31,
loss comprehensive 2019
income

Tax effect of items constituting deferred tax liabilities

Difference between book and tax depreciation 8996.19 1,119.80 - 10115.99
Amortisation of financial assets/liabilities 28.39 (10.99) - 17.40
Fair value adjustment through OCI 10.46 - 13.50 23.96
9035.04 1,108.81 13.50 10157.35
Tax effect of items constituting deferred tax assets
Retirement benefits 8.73 106.55 (115.29) -
Finance lease obligations 85.64 9.05 94.69
Derivative adjustments 54.81 (9.68) 45.13
Unpaid taxes and duties to be allowed on payment 1156.38 (34.68) 1121.70
Losses available for offsetting against future taxable income 9985.34 338.13 10323.46
Tax credit (minimum alternative tax) 1051.83 - 1051.83
Others 877.58 (458.66) 418.92
13220.31 (49.29) (115.29) 13055.73
Deferred tax (assets) /liabilities (net) (4,185.27) 1,158.10 128.79 (2,898.38)

The Company is having accumulated business losses (Including investment allowance) of `29,542.88 crore (previous year - `28,525.26 crore) [including accumulated unabsorbed
depreciation of `21,537.70 crore (previous year - `18,823.78 crore)] and MAT credit of `1,051.83 crore as on 31st March, 2019 as per the provisions of the Income Tax Act, 1961. The
unabsorbed business losses amounting to `8,005.17 crore (previous year - `9,751.48 crore) are available for offset for maximum period of eight years from the incurrence of loss and
unused tax (MAT) credit will be available for offset within maximum period of fifteen years.
Accordingly, deferred tax asset of `2,797.33 crores on acccumulated business losses (inlcuding nil during the year ended 31st March, 2019) and MAT credit of `1,051.83 crores, has
been recognised as on 31st March, 2019 in line with IND AS 12.

(` crore)

As at 31st As at 31st
March, 2019 March, 2018

13: CURRENT TAX ASSETS (NET)

Current tax assets

Advance income tax (net of provision) 153.63 190.31

153.63 190.31

14: OTHER ASSETS - NON CURRENT

Advances to contractors & suppliers 456.24 341.37

Advances others 4.18 4.18
Deposit with Government authorities 736.71 646.94
Prepaid expenses 25.35 25.43
Capital advances 201.87 133.76
Less: Provision for doubtful capital advances 4.21 197.66 11.19 122.57
1420.14 1140.49
Less: Provision for doubtful other assets 63.54 61.95
1356.60 1078.54

51
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

15: INVENTORIES*
Stores & spares
Production 2796.93 2154.53
Fuel Stores 137.50 84.32
Others 25.48 24.54
2959.91 2263.39
Add: In-transit 248.34 155.02
3208.25 2418.41
Less: Provision for non moving/obsolete items 232.26 2975.99 233.97 2184.44
Raw Material
Raw material 3690.45 4599.69
Add: In-transit 2430.24 2586.51
6120.69 7186.20
Less: Provision for unusable materials 15.17 6105.52 17.64 7168.56
Finished / Semi-finished products
Finished goods 6964.53 4430.95
Work in progress 3395.76 10360.29 3212.72 7643.67
19441.80 16996.67
*Valued as per accounting policy No. 3.6

16: TRADE RECEIVABLES - CURRENT

Considered good - Secured - -

Considered good-Unsecured 4495.05 3869.94
Receivables - credit impaired 198.26 190.02
4693.31 4059.96
Provision for doubtful receivables 198.26 190.02
4495.05 3869.94
* Receivables due from directors and officers of the Company is nil (previous year nil)

17 (i): CASH AND CASH EQUEVALENTS

Cash and stamps on hand 0.10 0.04

Cheques in hand 31.88 77.60
Balance with Banks
Current accounts 2.58 1.81
Term deposits with original maturity upto 3 months 0.01 -
Term deposits as per court orders with maturity upto 3 months 0.02 2.61 - 1.81
34.59 79.45

17 (ii): OTHER BANK BALANCES

Earmarked bank balances 179.24 168.30

Unpaid dividend accounts 5.59 6.21
Fixed deposits with maturity for more than 3 months but less than 12 months - 0.10
184.83 174.61

52
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

18: LOANS - CURRENT

Considered good - Secured - -

Considered good - Unsecured
Security deposits 10.09 8.48
Loan to employees 39.61 60.92
Loan to related parties 2.10 7.00
Loan to others 2.67 54.47 1.97 78.37
54.47 78.37
Less: Provision for doubtful loans 1.23 14.96
53.24 63.41
* Receivable includes amounts due from Directors - nil (previous year -nil)

19: OTHER FINANCIAL ASSETS - CURRENT

Derivative assets - 47.66

Claims recoverable 769.62 715.85
Receivable - others 385.17 311.17
Receivables from employees 6.36 6.76
Amount recoverable from Gratuity Trust 259.15 -
Bills receivable 1036.75 1787.27
Advances to related parties 21.68 23.66
Less: Provision for doubtful related parties advances 13.42 8.26 13.42 10.24
2465.31 2878.95
Less Provision for doubtful assets 304.43 107.01
2160.88 2771.94

20: OTHER ASSETS - CURRENT

Gold coins in hand 0.23 0.23

Advances to contractors & suppliers 324.84 254.67
Advance others 868.14 1192.98 851.03 1105.70
Deposit with Government authorities 2832.62 2511.82
Deposits - GST 5.11 33.80
GST receivable-input service 4.53 -
GST receivable 1633.13 1813.70
TDS deducted by customers on GST 0.66 -
Prepaid expenses 31.05 24.26
Claims receivable 147.87 184.46
Export incentive receivables 74.57 45.68
5922.75 5719.65
Less: Provision for doubtful other assets 55.34 85.23
5867.41 5634.42

21: ASSETS CLASSIFIED AS HELD FOR SALE

Assets classified as held for sale 11.47 32.50

11.47 32.50
(i) On floatation of tender for sale of items of Property, Plant and Equipment, it is considered highly likely that such assets will be sold within next 12 months and such assets are treated
as ‘Assets classified as held for sale’.
(ii) Plant & machinery classified as held for sale during the reporting period was measured at the lower of its carrying amount and fair value less costs to sell at the time of the
reclassification. The fair value of the plant & machinery was determined using the comparable value approach. This is a level 3 measurement as per the fair value hierarchy set out
in fair value measurement disclosures. The key inputs under this approach is the metal price in the market.

53
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
22: EQUITY SHARE CAPITAL
(` crore)
st
As at 31 As at 31st
March, 2019 March, 2018

Authorised capital

Equity shares of ` 10 each

(5,00,00,00,000 equity shares of `10 each) 5000.00 5000.00

Issued and subscribed capital & fully paid-up

(4,13,05,25,289 equity shares of ` 10 each fully paid up) 4130.53 4130.53

Reconciliation of equity shares outstanding at the beginning and at the end of the year.

Particulars As at 31st As at 31st

March, 2019 March, 2018

Numbers Amount Numbers Amount

(` in crore) (` in crore)

Equity shares with voting rights

Balance at the beginning of the year 4130407654 4130.41 4130407654 4130.41

Shares converted into shares with/without(-) voting Rights during the year 1200 - - -

Shares bought back during the year - - - -

Balance at the end of the year# 4130408854 4130.41 4130407654 4130.41

Equity shares without voting rights *

Balance at the beginning of the year 117635 0.12 117635 0.12

Shares Issued during the year

Shares converted into shares with/without(-) voting Rights during the year -1200 - - -

Balance at the end of the year 116435 0.12 117635 0.12

Total Equity shares outstanding 4130525289 4130.53 4130525289 4130.53

i) *Represented by current holding of 117635 shares in Global Depository Receipt (GDR) issued in 1996 @ US $ 29.55 each for an aggregate amount of US $ 125 million.

ii) #Includes 1961727 shares (previous year 1731709 shares) transferred to IEPF authority on which the voting rights are frozen.

iii) All shares rank equally with regard to the repayment of capital in the event of liquidation of the Company.

iv) The Company does not have a holding company.

(v) Details of the shareholders holding more than 5% of the shares in the Company

Name of Shareholder As at 31st As at 31st

March, 2019 March, 2018

No. of Shares % of Holding No. of Shares % of Holding

held held

President of India 3097767449 75.00 3097767449 75.00

LIC of India 396663164 9.60 395451358 9.57

(vi) The Company has neither issued bonus shares nor has bought back any shares during the last 5 years.

54
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
23: OTHER EQUITY
(` crore)
st
As at 31 As at 31st
March, 2019 March, 2018

Reserves & Surplus

Capital Reserve

Opening balance 1.75 1.75

Additions during the year - -

Less: Utilisation during the year - 1.75 - 1.75

Securities Premium

Opening balance 235.10 235.10

Changes during the year - 235.10 - 235.10

Bond Redemption Reserve

Opening balance 2340.69 1973.64

Transfer from retained earnings 383.55 606.80

Transfer to retained earnings 730.10 1994.14 239.75 2340.69

General Reserve

Opening balance 5095.13 5095.13

Additions during the year - -

Less: Utilisation during the year - 5095.13 - 5095.13

Retained Earnings

Opening balance 23898.88 24570.11

Add: Net Profit/(Loss) for the year 2,178.82 (481.71)

Add: Other comprehensive Income/(Loss) 214.62 177.53

Add: Transfer from Bond Redemption Reserve 730.10 239.75

Less: Transfer to Bond Redemption Reserve 383.55 606.80

Less: Transfer to General Reserve - 26638.87 - 23898.88

Other Comprehensive Income

Equity Instruments through Other Comprehensive Income

Opening balance 11.59 2.80

Change in fair value of FVOCI equity instruments 44.46 56.05 8.79 11.59

Total other equity 34021.04 31583.14

Nature and purpose of other reserves

Capital reserve
Capital reserve is created out of the capital profit, it is created out of the profit earned from some specific transactions of capital nature. Capital reserve is not available for the distribution
to the shareholders.

Securities premium reserve

Securities premium reserve represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

Bond redemption reserve

The Company is required to create bond redemption reserve as per the provisions of Companies Act, 2013 out of the profits which are available for distribution of dividends. The reserve
is maintained till the redemption of bonds.

Other Comprehensive Income (OCI) reserve

The Company has opted to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the
FVOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

55
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
24. BORROWINGS - NON CURRENT
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

SECURED
Redeemable Non-Convertible Bonds
Rate of Interest Maturity Date Call/Put option (yr) Security
Reference
9.35% 9-Sep-2026 12/nil (a) 455.00 455.00
9.00% 14-Oct-2024 (a) 1000.00 1000.00
8.75% 15-Sep-2024 ( b,d ) 50.00 100.00
8.70% 25-Aug-2024 (a) 300.00 300.00
8.30% 3-Aug-2023 (a) 800.00 800.00
8.30% 1-Aug-2023 (a) 1200.00 1200.00
8.35% 19-Nov-2022 (a) 1185.00 1185.00
9.30% 23-Aug-2021 (a) 400.00 400.00
8.55% 11-Aug-2021 (a) 700.00 700.00
8.80% 26-Oct-2020 ( b,c ) 84.00 98.00
8.27% 25-Aug-2020 (a) 265.00 265.00
9.30% 25-May-2020 ( a,i ) 216.00 288.00
8.72% 30-Apr-2020 (a) 660.00 660.00
8.75% 23-Apr-2020 (a) 545.00 545.00
8.65% 1-Feb-2020 5/nil (a) - 242.00
8.30% 21-Jan-2020 (a) - 500.00
8.65% 30-Dec-2019 (a) - 450.00
8.50% 7-Dec-2019 (a) - 120.00
8.60% 19-Nov-2019 (a) - 335.00
8.80% 22-Jun-2019 (a) - 825.00
7.70% 11-May-2019 5/5 (a) - 25.00
8.90% 1-May-2019 5/nil (b) - 950.00
Total Bonds 7860.00 11443.00
Term Loans from banks
Rupee loans (h) 18681.00 14156.00
Foreign currency loans (h) 2391.57 2247.26
28932.57 27846.26
UNSECURED
Foreign currency loan
1 KFW, Germany (e) 322.56 358.48
2 Natexis Banque (f) 12.32 15.01

Steel development fund (g) 204.16 204.16

539.04 577.65
Long term maturities of finance lease obligations 1331.05 1353.25
Total Non Current Loans 30802.66 29777.16
No loans have been guaranteed by the directors and others.
There is no default as on the balance sheet date in repayment of borrowings and interest thereon.
All bonds are repayable on the maturity date unless otherwise stated.

Bonds are secured, in respect of respective facilities by way of :

a) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad, Gujarat and Company's Plant & Machinery, including the
land on which it stands, pertaining to IISCO Steel Plant (ISP).
b) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad, Gujarat and Company's Plant & Machinery, including the land
on which it stands, pertaining to Durgapur Steel Plant.( DSP ).
c) Redeemable in 12 equal yearly instalments of ` 14 crore each starting w.e.f 26th October, 2014. Instalment payable on 26th Oct, 2019 has been shown in Other Current Liabilities.
d) Redeemable in 3 equal instalments of ` 50 crore each on 15th September of 2014, 2019 and 2024.
e) The soft basis of the loan was drawn in 3 tranches stated as 1(a), 1(b) and 1( c) at an interest rate of 8.75% p.a. The Interest on 1(a) is 0.75% p.a and balance 8% is towards meeting Exchange fluctuation (4%)
and Pollution control schemes (4%). In case of 1 (b) the Interest is 0.75% p.a and balance 8.0% p.a is towards periphery development. The Interest on 1(c) is 3.66% p.a and the balance 5.09% p.a is towards
meeting periphery development. The principal and interest is repayable half yearly. The loan is guaranteed by Government of India.
f) The loan is repayable by 2030. The principal and interest is paid half yearly, guaranteed by Government of India.
g) Terms of Repayment is to be decided by SDF management Committee.
h) Secured by charges ranking pari-pasu on the present and future movable plant and machinery of BSL & BSP to the extent of loan. SBIECB loan is repayable in 4 equal installments at the end of 4th, 5th, 6th and 7th
from the first draw-down i.e. 25th Sept 2017.
i) Redeemable in 5 equal yearly instalments starting w.e.f 25th May, 2018. Installment payable on 25th May, 2019 has been shown in current liabilities.

56
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

25: TRADE PAYABLES - NON CURRENT

Due to micro, small and medium enterprise - -

Amount payable to contractors/suppliers/others 6.82 6.38
6.82 6.38

26: OTHER FINANCIAL LIABILITIES - NON CURRENT

Employees related dues 535.71 430.68

Interest Accrued but not due on borrowings 559.63 551.46
Other payables 235.28 197.22
1330.62 1179.36

27: PROVISIONS - NON CURRENT

Provision for gratuity - -

Provision for accrued leave liability 2683.07 2476.95
Provision for post retirement medical & settlement benefits 962.64 974.69
Provision for long term service award 18.39 20.90
Provision for mines closure 74.98 61.61
Other provisions 556.33 439.13
4295.41 3973.28

28: OTHER LIABILITIES - NON CURRENT

Deferred Income* 253.19 138.33

253.19 138.33
*Deferred income includes:
(a) award conferred by the Prime Minister of India to the Bhilai Steel Plant as best integrated steel plant in India and the earnings from the fund are utilised for the welfare of the
employees in Bhilai.
(b) Central Government grant of `105.75 crore was received during 2018-19 against sanctioned budgetary provision of `295.79 crore for the purpose of upgradation of Ispat General
Hospital, Rourkela to a Super Speciality Hospital.

29. BORROWINGS - CURRENT

Secured
Repayable on demand
From banks 3490.26 2334.39
Other loans and advances
From Banks - -
Unsecured
Other loans 2900.00 2950.00
Commercial paper 4240.96 3961.88
Foreign currency loans - 2998.05
10631.22 12244.32
1. Security disclosure for the outstanding short term borrowings as on 31st March, 2019:
Borrowings from banks are secured, in respect of respective facilities by way of :
(i) Hypothecation of all current assets

57
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

30: TRADE PAYABLES - CURRENT

Due to micro, small and medium enterprises (refer note 48.2) 67.45 48.22
Amount payable to related parties 174.47 9.30
Amount payable to contractors/suppliers/others 7016.07 7482.98
7257.99 7540.50

31: OTHER FINANCIAL LIABILITIES - CURRENT

Employee related dues 156.82 159.95

Interest accrued but not due on borrowings 756.89 920.54
Interest accrued and due on Steel Development Fund loans 152.00 152.00
Other liabilities-debtors banking arrangement 191.09 325.45
Derivative liability 4.54 65.24
Current maturities of long term debts 3607.71 3271.71
Current maturities of finance lease obligations 128.45 115.53
Unclaimed matured deposits and interest accrued thereon 1.01 1.01
Security deposits 1483.84 1323.33
Less: Investments received as security deposit - 1483.84 - 1323.33
Unpaid dividends 5.59 6.21
Payable for capital works 3598.18 3701.83
Other payables 4607.19 4127.40
14693.31 14170.20

32: OTHER LIABILITIES - CURRENT

Income received in advance from customers 1456.63 1880.13

Income received in advance - others 94.72 112.80
Deferred Income* 13.46 11.90
GST payable 2158.00 2135.74
Liab for interest on GST 0.76 -
TDS deducted from suppliers on GST 21.32 -
Other payables 2961.28 3001.85
6706.17 7142.42
*Deferred income inlcudes award conferred by the Prime Minister of India to the Bhilai Steel Plant as best integrated steel plant in India and the earnings from the fund are utilised for the
welfare of the employees in Bhilai.

33: PROVISIONS - CURRENT

Provision for gratuity - 31.11

Provision for accrued leave liability 285.51 308.77
Provision for post retirement medical & settlement benefits 107.93 105.60
Provision for long term service award 2.88 2.03
Provision for pollution control 39.48 40.30
Provision for foreign exchange fluctuation 12.78 -
Provision for wage revision 1247.52 1216.24
Provision for mine afforestation/ restoration etc. 344.33 319.25
Other provisions 268.34 280.88
2308.77 2304.18

33A: CURRENT TAX LIABILITIES (NET)

Opening Balance - 4.52

Add: Provision during the year - -
Less: Amount paid/transferred during the year - 4.52
Less: Provision written back during the year - - - -
- -

58
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

34. REVENUE FROM OPERATIONS

Sale of products
Domestic 63292.24 55971.08
Exports 2872.64 2243.70
Export incentives 102.42 82.48
Sub Total (a) 66267.30 58297.26
Sale of Services
Service charges 28.53 23.56
Sub Total (b) 28.53 23.56
Other Operating Revenues
Social amenities-recoveries 335.90 337.76
Sale of empties etc. 54.41 80.00
Sundries 281.17 223.78
Sub Total (c) 671.48 641.54
Total ( a+b+c ) 66967.31 58962.36
Desegregation of Revenue
Nature of Goods and Services
The Company is engaged in the manufacturing of Iron and Steel products and generate revenues from sale of Iron and Steel products and the same is only the reportable segment of the
Company.
(1) Primary Geographical Markets
Within India 63292.24 55971.08
Outside India 2975.06 2326.18
Total 66267.30 58297.26
(2) Major Products
Iron and steel 62541.86 55481.04
Other Secondary and By-products 3725.44 2816.22
Total 66267.30 58297.26
Contract Balances
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers receivables which are included in 'Trade
Receivables'.

Trade receivables 4495.05 3869.94

Contract assets - -
Contract liabilities 1456.63 1880.13

35. OTHER INCOME

Interest income
Loans & advances to other companies 0.79 0.78
Customers 133.92 101.78
Employees 13.36 16.75
Bank deposits 5.33 4.84
Others 39.58 41.94
Sub Total (a) 192.98 166.09
Dividend income
Dividend from subsidiaries 4.26 6.31
Dividend from investments 40.18 69.85
(includes dividend from investments carried at fair value through OCI)
Sub Total (b) 44.44 76.16
Other non-operating Income
Subsidy, relief and concession 1.10 6.12
Grant-in-aid 0.62 0.54
Provisions no longer required written back 87.65 90.64
Write back of other liabilities 59.21 81.62
Liquidated damages 101.37 20.02
Others 45.45 43.26
Sub Total (c) 295.40 242.20
Total (a+b+c) 532.82 484.45

59
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

36 : COST OF MATERIALS CONSUMED

Iron ore 5095.08 3818.79

Coal 26041.91 21445.07
Coke 31.32 31.63
Limestone 1355.12 1232.17
Dolomite 591.92 474.80
Ferro manganese 425.17 337.61
Ferro silicon 236.85 201.73
Silico manganese 1323.69 1193.85
Zinc 172.30 176.84
Aluminium 315.65 242.58
Others 1816.72 1299.85
37405.73 30454.92
Less :Inter account adjustments 5114.82 3776.11
32290.91 26678.81

37 : CHANGES IN INVENTORIES OF FINISHED GOODS AND WORK-IN-PROGRESS

Opening stock
Finished goods 4430.95 5822.05
Work in progress 3212.72 3985.00
7643.67 9807.05
Less: Closing stock
Finished goods 6964.53 4430.95
Work in progress 3395.76 3212.72
10360.29 7643.67
(2,716.62) 2163.38
Less : Excise duty on accretion (-) /depletion to stock - 1027.89
(2,716.62) 1135.49

38: EMPLOYEE BENEFITS EXPENSE*

Salaries & wages 6675.15 6461.98

Leave encashment 447.61 357.55
Company's contribution to provident & other funds 901.62 753.71
Travel concession 33.35 61.55
Welfare expenses 524.99 354.63
Gratuity 247.62 860.65
8830.34 8850.07
*Expenditure on employees's remuneration and benefits not included above and charged to:
Expenditure during construction 86.38 100.72
For descriptive notes on disclosure of defined benefit obligation, refer note 50.1

60
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

39: FINANCE COSTS

Interest Cost
Foreign currency loans* 169.24 526.99
Non convertible bonds 834.39 915.78
Bank borrowings - working capital 52.08 42.97
Steel development fund loans 4.94 4.08
Others 2075.14 1319.53
Other borrowing costs 19.13 13.40
3154.92 2822.75
*Including foreign exchange fluctuations loss of `41.69 crore (previous year: `120.04 crore gain)
Expenditure on Interest & Finance charges not included above and charged to Expenditure during Construction:
Foreign currency loans 125.97 94.89
Non convertible bonds 210.97 365.43
Steel development fund loans - Interest 3.24 4.09
Others 363.56 204.11
703.74 668.52

(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

40: OTHER EXPENSES

Consumption of stores & spares

Consumption 4429.88 3614.23

Less: Departmentally manufactured stores 925.98 735.15

Less: Finished products internally consumed as stores and spares 526.62 2977.28 473.26 2405.82

Repairs & maintenance

Buildings 204.40 193.77

Plant & machinery 1003.92 821.56

Others 265.76 1474.08 228.48 1243.81

Handling expenses

Raw material 478.13 425.91

Scrap recovery 335.21 813.34 282.30 708.21

Remuneration to auditors

Audit fees 2.12 1.79

Tax audit fees 0.64 0.51

In other services 1.30 1.16

Out of pocket expenses 0.84 4.90 0.67 4.13

Provisions

Doubtful debts, loans and advances 65.12 85.42

Investments - 13.08

Stores, spares and sundries 177.32 242.44 117.24 215.74

61
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

40: OTHER EXPENSES (CONTD.)

Power and fuel 6052.52 5809.81
Freight outward 2610.60 2241.95
Royalty and cess 2046.24 1271.58
Conversion charges 306.43 306.08
Excise duty on inter-plant transfer/internal consumption 0.09 63.76
Demurrage & wharfage 49.79 38.82
Water charges & cess on water pollution 129.29 115.82
Insurance 27.52 24.87
Postage, telegram & telephone 19.62 16.76
Printing & stationery 8.94 8.22
Rates & taxes 46.24 58.30
Rent 82.50 80.52
Security expenses 591.71 512.39
Travelling expenses 159.98 157.51
Expenditure on temporary suspended mines (refer note - 49.13) 15.94 82.07
Training expenses 44.02 41.81
Expenditure on corporate social responsibility (refer note - 49.6) 31.18 25.70
Foreign exchange fluctuations (net) 163.56 3.73
Loss on sale/scrapping of fixed assets (net) 45.27 72.80
Cost audit fee and reimbursement of expenses 0.09 0.04
Write-offs - Miscellaneous 0.10 2.61
Handling expenses - finished goods 174.25 186.43
Commission to selling agents 14.34 6.53
Export sales expenses 37.36 47.01
Miscellaneous 658.95 523.41
18828.57 16276.24

41: EXCEPTIONAL ITEMS

Volantary retirement compensation 100.72 254.20

Write back of pension liabilities - (458.16)
Provision for illegal mining - 340.72
Reversal of Distrct Mineral Fund - (261.76)
Reversal of wages and salary - (110.82)
Provision for surrender of coal blocks - 209.39
Entry Tax 92.23 -
Royalty Difference 143.54 -
Amortisation on stamp duty and registration charges 52.91 -
389.40 (26.43)

41A: EARNING PER SHARE

Profit for the year (` crore) 2178.82 (481.71)

Number of equity shares 4130525289 4130525289
Earning per share - basic and diluted (`) 5.27 (1.17)
Face value per equity share (`) 10.00 10.00

62
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
42. FINANCIAL INSTRUMENTS
i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are categorized into three levels of a fair value hierarchy. The three levels are
defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data
rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
ii) Financial assets and liabilities measured at fair value - recurring fair value measurements (` crore)

As at 31st March, 2019 Level 1 Level 2 Level 3 Total

Financial assets
Financial instruments at FVTPL
Derivative financial assets 172.29 172.29
Investments at FVOCI
Equity instruments
Quoted 22.34 22.34
Unquoted 116.12 116.12

Total financial assets 22.34 172.29 116.12 310.75

Financial liabilities
Financial instruments at FVTPL
Derivative liability 4.54 4.54

Total financial liabilities - 4.54 - 4.54

Financial assets and liabilities measured at fair value - recurring fair value measurements (` crore)

As at 31st March, 2018 Level 1 Level 2 Level 3 Total

Financial assets
Financial instruments at FVTPL
Derivative financial assets 124.39 124.39
Investments at FVOCI
Equity instruments
Quoted 20.50 20.50
Unquoted 59.99 59.99

Total financial assets 20.50 124.39 59.99 204.88

Financial liabilities
Financial instruments at FVTPL
Derivative liability 65.24 65.24

Total financial liabilities - 65.24 - 65.24

iii) Financial assets and liabilities - for which fair values are disclosed (` crore)
st st
Level As at 31 March, 2019 As at 31 March, 2018

Carrying value Fair Value Carrying value Fair Value

Financial assets
Loans Level-3 617.22 630.80 514.87 544.76
Derivative financial assets Level-2 172.29 172.29 124.39 124.39
Equity instruments
Quoted Level-1 22.34 22.34 20.50 20.50
Unquoted Level-3 116.12 116.12 59.99 59.99

Total financial assets 927.97 941.55 719.75 749.64

Financial liabilities
Borrowings Level-3 46829.65 47150.97 47358.17 47714.31
Other payables Level-3 10775.62 10817.79 9947.63 9988.81
Derivative liability Level-2 4.54 4.54 65.24 65.24

Total financial liabilities 57609.81 57973.30 57371.04 57768.36

63
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(iv) Valuation process and technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) Fair value of interest swap is determined based on dealer or counterparty quotes for similar instruments
(b) Fair value of forward foreign exchange contract and principal swap is determined using forward rate at balance sheet date.
(c) The carrying value of borrowings bearing variable interest rate are considered to be representative of their fair value.
(d) The carrying value of financial assets and liabilities with maturities less than 12 months are considered to be representative of their fair value.
(e) Fair value of fixed interest rate financial assets and liabilities carried at amortised cost (including finance lease obligations) is determined by discounting the cash flows
using a discount rate equevalent to market interest rate applicable to similar assets and liabilities as at the balance sheet date.
(v) Unquoted investments:
Fair value estimates of unquoted equity investments are included in level-3 and are based on information relating to value of investee company's net assets. For investments in co-
operative societies, the Company has determined that cost is appropriate estimate of fair value, therefore, there have been no changes on account of fair values.
vi) The following table presents the changes in value of financial instruments measured at fair value using level 3 inputs: (` crore)

Unlisted equity securities

As at 31st March, 2017 58.39
Gains/losses recognised in other comprehensive income 1.60
As at 31st March, 2018 59.99
Gains/losses recognised in other comprehensive income 56.13
As at 31st March, 2019 116.12

43. FINANCIAL RISK MANAGEMENT

i) Financial instruments by category (` crore)
As at 31st March, 2019 As at 31st March, 2018
Particulars FVTPL FVOCI Amortised FVTPL FVOCI Amortised
cost cost
Financial assets
Investments
Equity instruments* 138.46 80.49
Trade receivables 4495.05 3869.94
Cash and cash equivalents 34.59 79.45
Other Bank Balances 184.83 174.61
Loans 617.22 514.87
Derivative financial assets 172.29 124.39
Other receivables 2247.00 2828.99
Total 172.29 138.46 7578.69 124.39 80.49 7467.86
Financial liabilities
Borrowings 46829.65 47358.17
Trade payable 7264.81 7546.88
Derivative Liability 4.54 65.24
Other payables 10775.62 9947.63
Total 4.54 - 64870.08 65.24 - 64852.68
* Investment in equity of joint ventures and associates have been carried at cost as per Ind AS 27 "Separate financial statements" and hence are not presented here.
ii) Risk Management
The Company is exposed to various risk in relation to financial instruments. The Company's financial asset and liabilities are by category are summarised in note 43(i). The main
types of risks are market risk, credit risk and liquidity risk. The Company’s risk management is co-ordinated at its headquarters, in close cooperation with the board of directors, and
focuses on actively securing the Company’s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are
managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant
financial risks to which the Company is exposed are described below.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Comapny. The Company is exposed to this risk for various financial instruments, for example by
granting loans and receivables to customers, placing deposits, etc. The Company’s maximum exposure to credit risk is limited to the carrying amount of following types financial
assets.
-Cash and cash equivalents
-Derivative financial instruments
-Trade receivables
-Other financial assets measured at amortized cost
The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit
risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company's policy is to
deal only with creditworthy counterparties.

64
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
a) Credit risk management
Cash and cash equivalent
Credit risk related to cash and cash equivalents is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the
country.
Derivative financial instruments
Credit risk related to derivative financial instruments is also managed by only entering into such arrangement with highly rated banks or financial institutions as counterparties.
The company diversifies its holdings with multiple counterparties.
Trade receivables
Credit risk related to trade receivables are mitigated by taking bank guarantees from customers where credit risk is high. The Company closely monitors the credit-worthiness
of the debtors and only sells goods to credit-worthy parties. The Company's internal systems are configured to define credit limits of customers, thereby limiting the credit risk
to pre-calculated amounts.
Other financial assets measured at amortized cost
Other financial assets measured at amortized cost includes loans and advances to employees and others. Credit risk related to these other financial assets is managed by
monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
b) Expected credit losses
Company provides expected credit losses based on the following
Trade receivables
The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach and uses historical information to arrive at loss percentage relevant
to each category of trade receivables:
(` crore)
Ageing (As at 31st March, 2019) 0-3 months 3-12 months 12-24 months 24-36 months more than Total
36 months
Gross carrying amount 3770.89 572.15 124.52 43.46 182.29 4693.31
Expected loss rate 1.80% 0.39% 0.00% 0.05% 70.25% 4.22%
Expected credit loss provision 67.96 2.23 0.00 0.02 128.05 198.26
Carrying amount of trade receivables 3702.93 569.92 124.52 43.44 54.24 4495.05
(Net of impairment)

Ageing (As at 31st March, 2018) 0-3 months 3-12 months 12-24 months 24-36 months more than Total
36 months
Gross carrying amount 2997.57 697.14 92.93 74.74 197.58 4059.96
Expected loss rate 0.03% 0.38% 2.30% 2.81% 92.26% 4.68%
Expected credit loss provision 0.84 2.66 2.14 2.10 182.28 190.02
Carrying amount of trade receivables 2996.73 694.48 90.79 72.64 15.30 3869.94
(Net of impairment)

Reconciliation of Expected credit loss provision

Particulars (` crore)
As at 31st March, 2017 176.48
Changes in provision 13.54
As at 31st March, 2018 190.02
Changes in provision 8.24
As at 31st March, 2019 198.26

Other financial assets measured at amortized cost

Company provides for expected credit losses on "loans advances and other than trade receivables" by assessing individual financial instruments for expectation of any credit losses.
Since this category includes loans and receivables of varied natures and purpose, there is no trend that the company can draw to apply consistently to entire population For such
financial assets, the Company's policy is to provide for 12 month expected credit losses upon initial recognition and for lifetime expected credit losses upon significant increase in
credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature, though incurred loss provisions are
disclosed under each sub-category of such financial assets.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit
facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the
liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the
level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Maturities of financial liabilities
The tables below analyse the company’s financial liabilities into relevant maturity accompanying based on their contractual maturities for all non-derivative financial liabilities and the
amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not
significant.

65
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)
st
Contractual maturities of financial liabilities as at 31 March, 2019 Less than 1-2 year 2-3 year More than Total
1 year 3 years
Non-derivatives
Borrowings* 17626.05 4901.99 5955.80 27521.22 56005.06
Trade payable 7257.99 - - 6.82 7264.81
Other payables 10611.18 111.29 104.45 1409.63 12236.55

Total 35495.22 5013.28 6060.25 28937.67 75506.42

Derivatives
Derivative liability (Net Settled) 4.54 - - - 4.54

Total 4.54 - - - 4.54

Contractual maturities of financial liabilities as at 31st March, 2018 Less than 1-2 year 2-3 year More than Total
1 year 3 years
Non-derivatives
Borrowings* 18348.05 5719.16 4611.01 27190.55 55868.77
Trade payable 7540.49 0.64 0.85 4.89 7546.87
Other payables 10392.85 112.45 96.56 1270.94 11872.80

Total 36281.39 5832.25 4708.42 28466.38 75288.44

Derivatives
Derivative liability 65.24 - - - 65.24

Total 65.24 - - - 65.24

* borrowings excludes finance lease obligations, refer note 49.9(b) for disclosure of maturity profile of finance lease obligations.

C) Market Risk
a) Foreign currency risk
Most of the Company’s transactions are carried out in INR. Exposures to currency exchange rates arise from the Company’s overseas borrowing arrangements, which are primarily
denominated in US dollars (USD).
To mitigate the Company’s exposure to foreign currency risk, non-INR cash flows are monitored and forward exchange contracts are entered into in accordance with the Company’s
risk management policies. Generally, the Company’s risk management procedures distinguish short-term foreign currency cash flows (due within 6 months) from longer-term cash
flows (due after 6 months). Where the amounts to be paid and received in a specific currency are expected to largely offset one another, no further hedging activity is undertaken.
Forward exchange contracts are mainly entered into for significant long-term foreign currency exposures that are not expected to be offset by other same-currency transactions.
Foreign currency risk exposure:
The Company's significant exposures to foreign currency risk at the end of the reporting period expressed in ` crore are as follows:
Particulars As at 31st March, 2019 As at 31st March, 2018
USD Euro USD Euro
Financial assets
Trade receivables 42.62 - 1.89 -
Cash and cash equivalents - - - -
Other Bank Balances - - - -
Loans - - - -
Derivative financial assets (Gross amounts, to hedge borrowings) - - 3343.41 -
Other receivables - - - -

Net exposure to foreign currency risk (assets) 42.62 - 3345.30 -

Financial liabilities
Borrowings 2406.58 344.58 3619.36 327.06
Trade payable 3460.07 366.69 90.63 330.72
Derivative Liability 4.54 29.35
Other payables 20.34 191.77 68.30 137.27

Net exposure to foreign currency risk (liabilities) 5891.53 903.04 3807.64 795.05

Sensitivity
The following table illustrates the sensitivity of profit and equity in regards to the Company’s financial assets and financial liabilities and the USD/INR exchange rate and EUR/INR
exchange rate ‘all other things being equal’. It assumes a +/- 6.82% change of the INR/USD exchange rate for the year ended at 31 March, 2019 (2018:4.24%). A +/- 7.26%
change is considered for the INR/EUR exchange rate (2018: 6.90%). Both of these percentages have been determined based on the average market volatility in exchange rates in the
previous 12 months. The sensitivity analysis is based on the Company’s foreign currency financial instruments held at each reporting date and also takes into account forward
exchange contracts that offset effects from changes in currency exchange rates.

66
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)
st st
Particulars As at 31 March, 2019 As at 31 March, 2018
USD sensitivity
INR/USD- increase by 6.82% (31 March 2019) (398.90)
INR/USD- decrease by 6.82% (31 March 2019) 398.90
INR/USD- increase by 4.24% (31 March 2018) (19.60)
INR/USD- decrease by 4.24% (31 March 2018) 19.60
Euro sensitivity
INR/EUR- increase by 7.26% (31 March 2019) (65.56)
INR/EUR- decrease by 7.26% (31 March 2019) 65.56
INR/EUR- increase by 6.90% (31 March 2018) (54.86)
INR/EUR- decrease by 6.90% (31 March 2018) 54.86

b) Interest rate risk

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term borrowings are therefore usually at fixed rates. At 31 March, 2019,
the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates. Other borrowings are at fixed interest rates. The Company’s
investments in bonds all pay fixed interest rates. The exposure to interest rates for the Company’s money market funds is considered immaterial. The following table illustrates the
sensitivity of profit and equity to a reasonably possible change in interest rates of +/- 1% (2018: +/- 1%). These changes are considered to be reasonably possible based on
observation of current market conditions. The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each
reporting date that are sensitive to changes in interest rates. All other variables are held constant.
i) Liabilities
The company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31st March, 2019, the company is exposed to changes in market interest rates
through bank borrowings at variable interest rates.
Interest rate risk exposure
Below is the overall exposure of the company to interest rate risk: (` crore)
st st
Particulars As at 31 March, 2019 As at 31 March, 2018
Variable rate borrowing (excluding exposures offset by derivatives) - 2998.05
Fixed rate borrowing 46829.65 44360.12

Total borrowings 46829.65 47358.17

Sensitivity
Below is the sensitivity of profit or loss and equity changes in interest rates. (` crore)

Particulars As at 31st March, 2019 As at 31st March, 2018

Interest sensitivity
Interest rates-increase by 100 basis points 468.30 473.58
Interest rates-decrease by 100 basis points -468.30 -473.58

ii) Assets
The company’s fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither
the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
Interest rate risk exposure
Below is the overall exposure of the financial assets: (` crore)

Particulars As at 31st March, 2019 As at 31st March, 2018

Variable rate deposits/ loans - -
Fixed rate deposits/ loans 802.05 689.48

Total deposits 802.05 689.48

c) Price risk
Exposure
The Company is exposed to other price risk in respect of its investment shares of other companies (see Note 8). The Company does not consider changes in value of its investments
in shares as insignificant, therefore is not exposed to price risks on exposures outstanding on the balance sheet date.

67
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
44. CAPITAL MANAGEMENT
The company’ s capital management objectives are
- to ensure the company’s ability to continue as a going concern
- to provide an adequate return to shareholders
The company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
Management assesses the company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the
subordination levels of the company’s various classes of debt. The company manages the capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
(` crore)
st st
Particulars As at 31 March, 2019 As at 31 March, 2018
Net debts 46610.23 47104.11
Total equity 38151.57 35713.67

Net debt to equity ratio 1.22 1.32

Dividends
(i) Equity shares
Final dividend for the year ended 31st March, 2019 @ 5% on the paid up Share Capital 206.53 Nil
(ii) Dividends not recognised at the end of the reporting period 206.53 Nil

45. DETAILS OF ASSETS PLEDGED

(` crore)

st st
Particulars As at 31 March, 2019 As at 31 March, 2018
Current
Inventories and trade receivables (to the extent pledged) 3490.26 2334.39
Non Current
Plant & Machinery (movable assets) - Durgapur steel plant (to the extent pledged) 134.00 198.00
Plant & Machinery (movable assets)-Bokaro & Bhilai Steel Plant (to the extent pledged) 21072.57 16403.26
Land and plant & Machinery(at Mouje-Wadej of city taluka, District Ahemadabad,Gujrat) - ISP 7726.00 11245.00

46. EFFECTIVE TAX RECONCILIATION

(` crore)

Particulars As at 31st As at 31st

March, 2019 March, 2018

Profit/(loss) before tax 3,337.89 (758.94)

Domestic tax rate for PFS 34.944% 34.944%
Expected tax expense [A] 1,166.39 (265.20)
Adjustment for tax-exempt income/ non-deductible expenses 0.74 (12.59)
Adjustment for difference tax rate items (0.44) (1.48)
Tax incentive on specific expenditure (12.46) (16.09)
Tax related to earlier years 4.84 35.73
Increase in Corporate tax rate - (28.39)
Others - 10.79
Total adjustments [B] (7.32) (12.03)
Actual tax expense [C=A+B] 1,159.07 (277.23)
Tax expense comprises:
Current tax expense - -
Deferred tax credit 1,159.07 (277.23)
Tax expense recognized in Statement of profit and loss [D] 1,159.07 (277.23)

68
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
47.1 CONTINGENT LIABILITIES
(` crore)

As at As at
31st March, 2019 31st March, 2018

(i) Claims against the Company pending appellate/judicial decisions :

a) Excise Duty 5080.94 4527.42

b) Sales Tax on inter-state stock transfers from plants to stockyards*. 740.68 739.90

c) Other sales tax matters 591.38 629.13

d) Income Tax 972.39 1416.94

e) Other duties, cess and levies 7226.47 6794.71

f) Civil matters ** 3949.52 3495.56

g) Entry Tax 2038.21 2125.99

h) Miscellaneous ** 3653.27 2942.42

* No liability is expected to arise, as sales tax has been paid on eventual sales.
** includes claims of `26.72 crore (as at 31st March, 2018 `60.97 crore), against which there are counter-claims of
`23.26 crore (as at 31st March, 2018 `35.37 crore).

(ii) Other claims against the Company not acknowledged as debt:

a) Sales Tax 106.53 64.29

b) Duties, cess and levies 288.51 629.27

c) Civil Matters 116.64 98.99

d) Miscellaneous * 2886.45 2757.72

* includes claims of `53.79 crore (as at 31st March, 2018 `100.94 crore) against which there are counter-claims of
`28.78 crore (as at 31st March, 2018 `103.95 crore).

(iii) Disputed income tax/service tax/other demand on joint venture company for which company may be contingently liable 36.35 34.76
under the joint venture agreement

(iv) Bills drawn on customers and discounted with banks. 189.01 68.83

(v) Price escalation claims by contractors/suppliers and claims by employees. 401.96 441.70

47.2 a) (i) The Nine Judges Constitutional Bench of Hon'ble Supreme Court, vide its judgment dated 11.11.2016, has upheld the constitutional validity of levy of Entry Tax Acts
enacted by various States and has laid down principles/tests for consideration. During the year, Hon'ble Allahabad High Court vide its Order dated 4th May, 2018, dismissed
the petition filed by the Company for levy of Entry Tax on goods entering into local areas of Uttar Pradesh. Accordingly, an amount of `92.23 crore has been charged in the
Statement of Profit and Loss under 'Exceptional Items'. The respective regular Benches of other Courts would hear the matters as per laid down principles. Pending
decisions by the regular Benches of other Courts on levy of Entry Tax in the States of Chhattisgarh, Odisha, Uttar Pradesh and Jharkhand, the Entry Tax demands under
dispute of `1092.28 crore, `241.00 crore, ` Nil crore and `5.15 crore respectively upto 31st March, 2019 aggregating to `1338.43 crore (previous year `1092.28 crore,
`241.00 crore, `92.23 crore and `5.15 aggregating to `1430.66 crore upto 31st March, 2018) have been treated as contingent liabilities.
(ii) The West Bengal Finance Act, 2017 has included WB Entry Tax in the jurisdiction of West Bengal Taxation Tribunal. Further, Hon'ble Calcutta High Court, vide its Order
dated 15.06.2018, transmitted the Writ Petition of DSP and ISP on Entry Tax to the West Bengal Taxation Tribunal.
Pending decision by West Bengal Taxation Tribunal the disputed Entry Tax demands amounting to `209.52 crore (upto 31st March, 2018 `Nil crore) have been treated as
contingent liabilities.
Pending final decision by the Hon'ble Calcutta High Court, in the case of levy of Entry Tax in West Bengal, the disputed Entry Tax demands of `89.40 crore upto 31st March,
2019 (upto 31st March, 2018 `295.50 crore) have been treated as contingent liabilities.
b) Hon'ble Supreme Court dismissed the SLP by the Company in respect of dispute with Damodar Valley Corporation(DVC) related to provisional tariff petition of electricity
charges for 2009-14 vide order dated 18th January, 2017, keeping the question of law open. The Order of Central Electricity Regulatory Commission (CERC) dt.7/8/2013
related to Tariff of 2009-14 against Petition No.275/GT/2012 has been challenged before Appellate Tribunal for Electricity (APTEL) (Appeal No.18 of 2014) in which the
Company has also intervened and the order of APTEL is pending. Further, Hon'ble Supreme Court dismissed the civil appeal filed by DVC pertaining to tariff of FY 2004-05
to 2008-09 against the Order of APTEL vide its Order dated 3rd December, 2018 which may also have effect on future tariff orders. The financial implication can only be
ascertained after the finalisation of retail tariff by State Electricity Regulatory Commission (SERC) as directed by APTEL. Pending fixation of Electricity Tariffs, disputed
claims of DVC of ` 587.72 crore upto 31st March, 2019 (upto 31st March, 2018, ` 587.72 crore) has been treated as Contingent Liability and included in Note No. 47.1(i)(f)
above. Against the said claims, the entire amount has been paid to DVC and disclosed under Other Current Assets. Further from 1st April, 2017 onwards full invoice value
has been considered in the Statement of Profit and Loss.
47.3 Under the Jharkhand Mineral Area Development Authority (Amendment) Act, 2015 the State Government of Jharkhand has made a demand of `3701.48 crore upto 31st
March, 2019 (upto 31st March, 2018 `3374.46 crore) towards "Market Fee" on transaction value of coal, iron and steel items. As the matter is sub-judice, the amount has
been disclosed as a Contingent Liability in Note No. 47.1(i)(e) above.
47.4 In its judgement, the Central Administrative Tribunal (CAT), Kolkata has directed that Ministry of Steel shall consider the aspect of payment of arrears of revised perks and
allowances and take appropriate decision of payment of revised perks and allowances amounting to `325.13 crore to the executives for the period 26.11.2008 to
4.10.2009. Ministry of Steel intimated the matter to the Company on 7.12.2016. A stay petition in the matter has been filed on 22.12.2016 and is pending before the Hon'ble
Calcutta High Court. As the matter is sub-judice, the amount has been disclosed as a Contingent Liability in Note No. 47.1(v) above.

69
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
47.5 Indigenous washed coking coal supplies, have been claimed by Bharat Coaking Coal Limited (BCCL) and Central Coalfields Limited (CCL) at unilaterally notified price w.e.f.
13th January, 2017 and 14th January, 2017 respectively, which is in deviation from the mutually agreed price with the Company for the year 2016-17. The Company has
accounted for the supplies based on agreed prices as per jointly signed Memorandum of Understanding, valid for supplies w.e.f. 1st April, 2016 to 31st March, 2017, between
SAIL and BCCL & CCL. The differential claims of BCCL & CCL, amounting to `334.45 crore at unilaterally notified higher rates over and above MOU rates, have been
disclosed as contingent liability in the Note No. 47.1(ii)(d) above.
47.6 The Ministry of Environment & Forest and Climate Change (MoEF& CC) vide their letter No.- 11-599/ 2014-FC dated 1st April 2015 issued revised Guidelines for diversion
of Forest Land for non-forest purpose under the Forest (Conservation) Act, 1980 (FC Act). These revised Guidelines stipulated that in case of existing mining leases having
Forest Land (partially or fully), where approval for only a part of forest land has been obtained under the FC Act, the Central Government accorded general approval under
Section-2(iii) of the FC Act for the remaining area also to be Forest Land, subject to certain conditions, which includes realising Net Present Value (NPV) for the entire forest
land falling in the mining lease, in case NPV of such forest land has not already been realised.
In this matter, as per legal opinion obtained by the Company, Section 2 (iii) of FC Act, 1980 will not apply to Government Corporation and NPV is required to be paid only for
that limited area, which has been approved by MoEF& CC and in which mining activities are proposed to be done and not for the entire forest area. The matter of applicability
of NPV for total forest land has been challenged by the Company in Hon'ble High Court of Jharkhand. The Hon'ble Court, in its order, has directed to place the matter before
Division Bench of this Court.
A writ petition has also been filed in the Hon'ble high Court of Chhattisgarh against the demand of `96.28 crore received during last year from the Office of Principal Chief
Conservator of Forest, Chhattisgarh.
47.7 Pursuant to the Hon'ble Supreme Court Judgment dated 2nd August, 2017 in the Common Cause matter regarding illegal mining, demand/Show cause notices have been
issued for recovery of the price of minerals produced without and beyond the environmental clearances under Section 21(5) of Mines and Mineral Development Regulation
Act, 1957, forest clearance under the Forest Conservation Act 1980, and towards excess production beyond consent to operate. The Company has challenged the
purported demand before the High Court of Jharkhand and Odisha and obtained stay on demand. As the matter is pending for final determination and considering the
implication of existing litigation, the Company has provided as detailed below:
(a) In respect of Iron Ore, by the Government of Odisha and Government of Jharkhand amounting to `245.89 crore and `1768.42 crore (` 212.85 crore and ` 1478.86 crore
as on 31st March 2018) respectively (including interest). Based on internal assessment, the Company has provided an amount of `348.52 crore (`15.07 crore during the
year) on estimated basis. Balance amount of `1665.79 crore (including interest) has been treated as contingent liability in Note No. 47.1(i)(h) above.
(b) In respect of Limestone, by the Government of Jharkhand amounting to `24.88 crore (including interest) (` 20.28 crore as on 31st March 2018). Based on internal
assessment, the Company has provided an amount of `8.91crore (` 1.64 crore during the year) on estimated basis. Balance amount of `15.97crore (including interest) has
been treated as contingent liability in Note No. 47.1(i)(h).
47.8 In respect of Coal, by the Government of Jharkhand amounting to `434.81 crore (including interest) (` 354.54 crore as on 31st March 2018). Revision Application has been
filed under Rule 55 (5) of Mineral Concessions Rule, 1960 read with Section 30 of Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). The Revisional
Authority, Ministry of Coal, has granted Stay to the Company. Accordingly pending disposal, the amount of `434.81 crore (including interest) has been treated as Contingent
Liability in Note No. 47.1(i)(h).
47.9 a) M/s Tata Projects Limited (TPL) & M/s Danieli Corus BV (DC)(in consortium) have filed a case before Arbitral Tribunal in International Chamber of Commerce against SAIL/
Rourkela Steel Plant for resolution of dispute arising out of contract. Arbitral Tribunal has awarded a sum of `626.02 crores on 16-May-2018 against SAIL/Rourkela Steel
Plant.
Against the award the management has filed an appeal before Honb'le High Court at Delhi which has been admitted. Pending disposal of appeal, management has deposited
`300 crores. The sum of `707.43 crores (including interest) has been disclosed under contingent liability in Note No. 47.1(ii)(d) above.
b) M/s JSC Cryogenmash have filed a case before Arbitral Tribunal in International Chamber of Commerce against SAIL/Bhilai Steel Plant for resolution of dispute arising out
of contract. Arbitral Tribunal has awarded a sum of `106.92 crores on 20.07.2018 against SAIL / Bhilai Steel plant.
Against the award the management has filed an appeal before Hon'ble High Court at Delhi which has been admitted. Pending disposal of appeal, the sum of `106.92 crore
(including interest) has been disclosed under contingent liability in Note no 47.1(ii) (d) above.
47.10 Pending settlement of the claims of Bharat Coking Coal Limited (BCCL)an amount of `27.00 crore related to selective loading charges by BCCL and `14.49 crore related
to extra royalty on output quantity, has been shown under Contingent Liabilities in Note No. 47.1(ii)(d) above.
47.11 Land measuring 5.545 acres was allotted to DVC for 30 years i.e. w.e.f. 12.07.1966 on long term lease basis. The Land was given to DVC for setting up of Electrical sub-
station for ensuring supply of power for the benefit of ASP. There was no lease agreement for the subsequent period, i.e., w.e.f. 13/07/1996. In absence of any agreement,
the dues receivables for the said period, could not be ascertained with reasonable certainty. The same will be accounted for in the year of settlement.
47.12 Consequent to the order of Hon'ble Odisha High Court, company's claim towards renewal of lease [total area of 2599.54 acre disclosed under Note No. 4.(ii) (b) ], of land
at Horomoto stands rejected, except surface area of 222.54 acre for which State Govt has been directed to consider as per provisions of Law.
47.13 Wage revision for non-executives is due since 01.01.2017. Keeping in view the affordability and financial sustainability clause in Office Memorandum dated 3rd August,
2017 and 24th November, 2017 issued by the Government of India, Ministry of Heavy Industries & Public Enterprises, Department of Public Enterprises (DPE) in respect of
pay revision of employees and in view of negative figures of average profit before tax of previous three years, pending negotiation with National Joint Committee for the Steel
Industry (NJCS) for such wage revision:
(i) An all-inclusive provision towards salary and wage revision of Non-executive Employees charged to 'Employee Benefit Expenses' for the period from 01.01.2017 to
31.12.2017 amounting to `308.24 crore (including `77.47 crore shown as exceptional Item) had been written back during the financial year 2017-18.
(ii) No provision has been made for the period 01-01-2017 to 31-03-2019
Based on the above facts, opinion of Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) received during the year, and in terms of
paragraph 14 of Ind AS 37, since one of the conditions being 'reliable estimate of the amount of the obligation' is not met at present, the Company has considered not to
make any provision in the accounts.
48.1 Estimated amount of contracts remaining to be executed and not provided for (net of advances) are:
(` crore)
Particulars As at 31st As at 31st
March, 2019 March, 2018

Capital commitments 7031.26 10747.11

Other commitments 2026.68 1824.86

70
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
48.2 The amount due to Micro and Small Enterprises as defined in the The Micro, Small and Medium Enterprises Development Act, 2006 (as disclosed in Note No. 30 Trade
Payables) has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and
Small Enterprises as at 31st March, 2019 are as under:
(` crore)
No. Description As at 31st As at 31st
March, 2019 March, 2018

i. The principal amount remaining unpaid to suppliers as at the end of the Year. 67.45 48.22
ii. The amount of interest accrued during the year and remaining unpaid at the end of the Year. - -
iii. The amount of further interest remaining due and payable even in the succeeding years, until such date when the - -
interest dues as above are actually paid to the small enterprises, for the purpose of disallowance as a deductible
expenditure under section 23.
iv. The interest due thereon remaining unpaid to supplier as at the end of the Year. - -

For the Year ended

31st March, 2019 31st March, 2018

v. The amount of interest paid in terms of section 16, along with the amount of the payment made to the supplier - -
beyond the appointed day during the Year.
vi. The amount of interest due and payable for the period of delay in making payment (which have been paid but - -
beyond the appointed day during the year) but without adding the interest specified under this Act.

48.3 Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmations/reconciliations and consequential adjustment, if any.
Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made. However, Management does not expect to have any
material financial impact of such pending confirmations/reconciliations.
48.4 As per past practice the Company has stock of iron ore fines of 41.52 million tonnes at various mines of the Company. Since the usage/sale of such iron ore fines, involves
elements of uncertainties, as a matter of prudence, no valuation of such fines has been made in the accounts. However, the revenue earned from actual disposal thereof
during the year has been recognised in the books of accounts.
48.5 The Block Land and Land Reforms Office, (Faridpur-Durgapur) and Andal, District: Paschim Bardhaman, Govt. Of West Bengal has raised demand of arrears of land revenue,
cess and interest for part of land of Durgapur Steel Plant henceforth referred to as 'Company'and its Township covering a period of past 40 years aggregating to `494.51
crore vide two demand notices dated 21.02.2018 and 08.03.2018 respectively).
The Company has contested the demands. Part of the land against which demand has been raised was acquired on behalf of the Central Government under Land Acquisition
Act and such acquisition vested in Union of India, while certain other parts of its lands were transferred by State Government to the Central Government and the Company
holds such lands on behalf of President of India. As per Article 285 of the Constitution of India no land revenue is payable on such lands. Moreover, Company had also paid
capitalised value of land revenue and as per judicial pronouncement, no land revenue is payable for lands for which capitalised value is paid. As such Company is of the
opinion that the demand raised against the Company is not tenable at all. Representation on that effect has already been made on 26th April, 2018 and 28th April, 2018. The
matter has been referred to the Directorate of Land Records & Surveys by the District Land & Land Reform Officer on 26th June, 2018. No further communication has been
received from the State Government authorities.
48.6 (i) The Company does not have taxable income in view of brought forward losses, unabsorbed depreciation and other reliefs available under the Income Tax Act, 1961 ('the
Act').
(ii) In view of the book losses during the immediately preceding three years and based on the expert opinions/ judicial pronouncements (including jurisdictional courts), no
provision has been considered necessary during the year for Minimum Alternate Tax(MAT) on book profit as per Section 115 JB of the Act.
49.1 Revenue from operations for the period up to 30th June, 2017 includes excise duty, which is discontinued effective 1st July, 2017 upon implementation of Goods and
Services Tax (GST). In accordance with 'Ind AS 18- Revenue'/ 'Ind AS 115- Revenue from Contracts with Customers', GST amount of `10678.01 crore (Previous Year :
`7864.70 crore) is not included in Revenue from Operations. In view of the aforesaid change, Revenue from Operations for the year ended 31st March, 2019 is not
comparable with corresponding figures for the year ended 31st March, 2018.
49.2 Sales include sale to Government Agencies recognized on provisional contract prices during the year ended 31st March, 2019: ` 5012.76 crore (Previous Year : `4802.50
crore) and cumulatively up to 31st March, 2019 : `17252.66 crore (upto Previous Year : `12271.05 crore).
49.3 As per the Department of Public Enterprises (DPE) guideline, the Company is required to contribute up to 30% of Salary (Basic Pay + Dearness Allowance) in respect of
executive employees as superannuation benefits, which may include Contributory Provident Fund, Gratuity, Pension and Post-Superannuation Benefits. Accordingly the
Company has made provision for pension benefit for executive employees @ 9% of Salary w.e.f. 1st January, 2007 and 3% of Salary w.e.f. 1st April, 2015. Further, pension
benefit for non-executive employees has been provided @ 6% of Salary w.e.f. 1st January, 2012 and 2% of Salary w.e.f. 1st April, 2015.
Pension Scheme was approved in the Meeting of the Board of Directors held on 9th February, 2017 with modification that from the Financial Year 2015-16 and onwards, the
contribution towards Pension shall be measured, as a percentage of Profit Before Tax(PBT) to average Net-worth. If the percentage of PBT to average Net-worth is 8% or
above, amount of Pension contribution shall be limited to 9% of Basic Pay plus DA for Executives and 6% of Basic Pay plus DA for Non-executive, else the amount of
contribution towards Pension will be reduced proportionately. However, a minimum Pension contribution shall be kept at the rate of 3% and 2 % of Basic Pay plus DA for
Executive and Non-Executive employees respectively even in case of loss during a Financial Year. Since the profit earned by the Company during the Financial Year ended
31st March, 2019 is more than 8% of average Net-worth, provision for Other Benefits (including pension) has been made @ 9% and 6% of salary w.e.f. 1st April 2018 for
Executive and Non-executive employees respectively.
As such, on 30th April, 2019, SAIL Pension Scheme/ Trust Deed/ rules containing above terms have been executed by nominees of National Joint Committee for Steels
(NJCS) and Steel Executives Federation of India (SEFI).
The cumulative provision/liability towards pension benefit for executive & non-executive employees, amounting to `2395.76 crore (`359.40 crore during the year) and
`46.25 crore (`4.77 crore during the year) has been charged to `Employee Benefits Expense' and `Expenditure during Construction' respectively.
49.4 The research and development expenditure charged to Statement of Profit & Loss and allocated to Fixed Assets/Capital work-in-progress (Net), during the year, amount to
`305.09 crore (`314.71 crore) and `14.77 crore (`20.79 crore) respectively. The aggregate amount of revenue expenditure incurred on research and development is
shown in the respective head of accounts. The break-up of the amount is as under:

71
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(` crore)
Head of Account For the year ended
31st March 31st March
2019 2018
Raw Materials 144.76 115.05
Employees Benefits Expense 64.81 97.95
Stores & Spares Consumed 12.46 11.40
Power & Fuel 23.37 21.61
Repairs & Maintenance 3.98 6.53
Depreciation and Amortisation Expense 7.69 8.54
Other Expenses 42.96 49.53
Finance Cost 5.06 4.10
Total 305.09 314.71

49.5 The Company considers the assets of one entire plant as Cash Generating Unit (CGU). The Company has internally reviewed whether there are any indicators that the
carrying amount of its assets of CGUs may be impaired on each balance sheet date. If any such indicators exist, the asset recoverable amount is estimated as higher of the
net selling price and the value in use. Value in use is based on present value of estimated future cash flows expected to arise from the continuing use of an asset and from
its disposal at the end of its useful life. An impairment loss is recognised whenever the carrying amounts of assets of a CGU exceed the asset recoverable amount. Further
to the internal assessment, the Company also determines net selling price of the assets of CGU, in which any such indication exists, once every three years by an
independent expert.
Based on the internal assessment done by the Company at its different CGUs as per the accounting policy of the Company, no impairment loss is required to be provided.
49.6 As per Section 135 of the Companies Act, 2013, the Company is required to spend, in every financial year, at least 2% of the average net profits of the Company made during
the three immediately preceding financial years in accordance with its Corporate Social Responsibility (CSR) Policy. Since, the Company reported average net loss during
the three immediately preceding financial years; no amount is required to be spent for the Financial Year 2018-19.
However, against the budgeted amount of `30.00 crore (previous year `26.00 crore), the Company has spent an amount of `31.18 crore (previous year `25.70 crore) on
CSR activities during the Financial Year 2018-19 under the following heads:
(` crore)
Particulars 2018-19 2017-18

Education 12.03 7.65

Healthcare 4.84 5.11
Livelihood Generation 2.71 3.54
Women Empowerment 0.47 0.75
Drinking Water 0.03 1.44
Sanitation 0.73 0.47
Sports 0.79 0.79
Art & Culture 5.39 1.13
Rural Development 1.84 2.07
Social Security 0.35 0.33
Environment Sustainability 1.62 2.20
Project Identification and Monitoring 0.03 0.00
Capacity Building of Personnel 0.36 0.23
Total 31.18 25.70

Further, no expenditure has been made involving the related parties.

49.7 In compliance to General Financial Rule 238(5) & (6), the details of Grants received from Ministry of Steel and it's utilization for Research and Development Projects during
last three years are as under :
(` crore)
Year Grant Received from Central Grant Utilised (from Opening
Government Balance and Current Year)
2018-19 1.47 1.02

2017-18 1.33 2.61

2016-17 2.32 2.15

49.8 Central Government grant of `105.75 crore (Rupees One Hundred Five Crore Seventy Five Lakh only) has been received during 2018-19 against sanctioned budgetary
provision of ` 295.79 crore for the purpose of upgradation of Ispat General Hospital, Rourkela to a Super Speciality Hospital and has been presented as a line item in the
Balance Sheet under the head "Other Liabilities- Deferred Income".

72
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
49.9 Information on leases as per Indian Accounting Standards (Ind AS) 17 on `Leases':
(a) The Company has granted lease of properties to the employees and third parties for varying periods. The lease premium received up-front, after adjusting against book
value, is booked to other revenues. Renewal premium, ground rent and service charges of properties, pending for renewal given on lease are treated as income in the year
of receipt.
(b) Finance lease liabilities (refer note 24 and 31) are secured by the related assets held under finance lease. Future minimum finance lease payments and present value of
minimum lease payments of the respective years are as follows:
(` crore)
Minimum Lease Payment Due
Within 1 year 1-5 years After 5 years Total
st
31 March, 2019
Lease payment 282.32 1062.56 1727.79 3072.67
Finance charge -163.38 -501.00 -948.79 -1613.17
Net present value 118.94 561.56 779.00 1459.50
31st March, 2018
Lease payment 261.85 915.89 2068.04 3245.78
Finance charge -156.70 -527.49 -1092.81 -1777.00
Net present value 105.15 388.40 975.23 1468.78

c) Description of major leasing arrangements

Power plant
The Company has accounted for certain power plants as finance lease under Appendix C of Ind AS 17 by virtue of the power purchase agreement with the supplier. Under
the terms of the power purchase agreement, the Company shall continue to purchase power until the parties decide to terminate the agreement, which has been determined
to be an un-economic proposition considering the specialised nature and location of the asset.
Oxygen Plant
The Company has accounted for certain oxygen plants as finance lease (or operating lease) under Appendix C of Ind AS 17 by virtue of the oxygen purchase agreement with
the supplier. The agreement to purchase oxygen is a 15 year fixed term agreement.
Mining land
The Company has accounted for leasehold lands for mining as finance leases by virtue of its rights under the lease agreement after considering the right/ economic
compulsion for renewal.
d) In respect of assets taken on lease/rent:
(i) The Company has various operating leases for, office facilities, guest houses and residential premises for employees that are renewable on a periodic basis. Rental
expenses for these leases recognised in the Statement of Profit and Loss during the year is `10.16 crore (`18.87 crore).
(ii) As at the Balance Sheet date, the future minimum lease payments under non-cancellable operating leases are:
(` crore)
As at 31st As at 31st
March, 2019 March, 2018

Not later than one year 43.53 43.23

Later than I year and not later than 5 years 173.45 172.23

Later than 5 years 215.29 258.35

49.10 Contributions in cash and kind made for the period from the Financial Year 2006-07 to 2017-18 to Railway authorities for laying out railway line from Rajhara to Rowghat
would be recovered in cash at the rate of 7% per annum for 37 years on total contribution towards redemption of SAIL's contribution after commencement and fulfilment of
assured traffic from Rowghat mines. Management is of view that the criteria laid out in Memorandum of Understanding will be met and interest accrues from the date of
investment. The refund amount comprises principal and interest elements. Accordingly, the interest element has been computed and recognised as income during the year
amounting to `22.51 crore (till date `56.76 crore). As per the opinion of Expert Advisory Committee of The Institute of Chartered Accountants of India, such treatment of
recognition on time proportion basis is in order as in view of Management, no significant uncertainty exists regarding collectability and measurability of revenue.
49.11 The Cabinet Committee on Economic Affairs ( CCEA) in its meeting held on 27th October, 2016 has "in-principle" decided for Strategic Disinvestment of Alloy Steels Plant
(ASP), Durgapur; Visvesvaraya Iron and Steel Plant (VISP), Bhadravati and Salem Steel Plant (SSP), Salem. Further, in line with "in-principle" approval of Government of
India, SAIL Board in its meeting held on 9th February, 2017, approved the Strategic Disinvestment of ASP, VISP and SSP. The Company appointed various Advisors to carry
out the process. Preliminary Information Memorandum (PIM) /Expression of Interest (EoI) for ASP has been published in News papers on 14th February, 2018. The EoI
received in response to the above have been annulled due to non-fulfilment of technical eligibility criteria. Fresh process in this regard has been initiated and revised PIM/
EoI requests of ASP, VISP and SSP will be issued after getting clearances from Government of India.
49.12 New Standards / Amendments to Existing Standard issued but not yet effective upto the date of issuance of the Company's Financial Statement are disclosed below:
Ministry of Corporate Affairs ("MCA"), through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second
Amendment Rules, has notified the following new and amendments to Ind ASs which the Company has not applied as they are effective from 01 April, 2019: The Company
will adopt new standard and amendment to existing standards with effect from April 1, 2019.
a. Ind AS 116: Leases -Ind AS 116 will supersede the existing Ind AS 17. The new standard provides a comprehensive model to identify lease-arrangements and the
treatment thereof in the financial statements of both the lessee and lessor. The new standard requires entities to make more judgments and estimates (e.g., determining
when a customer has the right to direct the use of an identified asset, estimating the incremental rate of borrowing) and make more disclosures (e.g., discount rate,
weighted average lease term, other qualitative and quantitative information).
Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless
the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability

73
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
representing its obligation to make lease payments. Ind AS 17 required classifying leases as finance lease and operating lease, the same in not required under Ind AS 116.
Under Ind AS 116, a lessee measures right-of-use assets similarly to other non-financial assets (such as property, plant and equipment) and lease liabilities similarly to
other financial liabilities.
On initial application the Company will recognise new assets and liabilities for its operating leases of premises and other assets. The nature of expenses related to those
leases will change from lease rent in previous periods to a) amortization change for the right-to-use asset, and b) interest accrued on lease liability.
Requirements with regard to lessor accounting are substantially similar to accounting requirements contained in Ind AS 17. Accordingly, a lessor will continue to classify
its leases as operating leases or finance leases, and to account for those two types of leases differently.
The Company is in the process of evaluating the impact of changes, if any, on the financial statements for FY 2019-2020 onwards
b. Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments: Ministry of Corporate Affairs has notified Ind AS 12 Appendix 'C' Uncertainty over Income Tax
Treatments on March 30, 2019. According to the appendix, the company need to determine the probability of the relevant tax authority accepting each tax treatment, or the
Company of tax treatments, that the companies have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the
expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates. The Company is in the process
of evaluating the impact of changes, if any, on the financial statements for FY 2019-2020 onwards
c. Amendment to Ind AS 12 - Income taxes: Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, 'Income Taxes', in connection with accounting
for dividend distribution taxes accordingly an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity
according to where the entity originally recognised those past transactions or events. It is relevant to note that the amendment does not amend situations where the entity
pays a tax on dividend which is effectively a portion of dividends paid to taxation authorities on behalf of shareholders. Such amount paid or payable to taxation authorities
continues to be charged to equity as part of dividend, in accordance with Ind AS 12. The Company is in the process of evaluating the impact of changes, if any, on the
financial statements for FY 2019-2020 onwards
d. Amendment to Ind AS 19 - plan amendment, curtailment or settlement- Ministry of Corporate Affairs issued amendments to Ind AS 19, 'Employee Benefits', On 30
March, 2019, in connection with accounting for plan amendments, curtailments and settlements. The Company is in the process of evaluating the impact of changes, if
any, on the financial statements for FY 2019-2020 onwards
e. Ind AS 23 - Borrowing Costs -The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that
borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. The Company is in the process of
evaluating the impact of changes, if any, on the financial statements for FY 2019-2020 onwards.
f. Ind AS 28 - Long-term Interests in Associates and Joint Ventures - The amendments clarify that an entity applies Ind AS 109 Financial Instruments, to long-term
interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. The Company
does not currently have any long-term interests in associates and joint ventures.
g. Ind AS 103 - Business Combinations and Ind AS 111 - Joint Arrangements
The amendments to Ind AS 103 relating to re-measurement clarify that when an entity obtains control of a business that is a joint operation, it re-measures previously held
interests in that business. The amendments to Ind AS 111 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not re-
measure previously held interests in that business. The Company will apply the pronouncement if and when it obtains control / joint control of a business that is a joint
operation.
49.13 Based on materiality and comparability, in respect of temporarily discontinuation of operation of mines namely Barsua (w.e.f 17.05.2014), Bhawnathpur (w.e.f 29.04.2013)
and Punapani (w.e.f 01.03.2004.) due to environmental/forestry clearance issues, net expenditure during the year 2018-19, excluding depreciation, of `15.94 crore
(Previous Year `82.07 crore) has been included under Note No.40 'Other Expenses' in Statement of Profit and Loss (refer Note No 40). Head wise bifurcation is as under:
(` crore)
Account Head For the year ended For the year ended
31st March, 2019 31st March, 2018

Salary and Wages 6.94 41.05

Stores and Spares 0.04 3.80

Power purchased 0.85 10.70

Repairs and Maintenance 0.35 8.36

Miscellaneous Expenses and Provisions 8.70 21.21

Total Expenditure 16.88 85.12

Less: Income 0.94 3.05

Net Expenditure 15.94 82.07

49.14 The Board of Directors of SAIL have recommended dividend @ ` 0.50 per equity share of ` 10 each i.e. 5% on the paid up share capital of the Company for the financial
year 2018-19, subject to approval of the shareholders in the forthcoming AGM of the Company.
50.1 DEFINED BENEFIT SCHEMES
50.1.1 General Description of Defined Benefit Schemes:
Gratuity: Payable on separation @15 days pay for each completed year of service to eligible employees who render continuous service of 5 years or more (for service
beyond 30 years, one month's salary for every completed year of service beyond 30 years). Maximum amount of `20 lakhs for executives & non-executives joined on or
after 1st July, 2014 and without any monetary limit for other non-executives, has been considered for actuarial valuation.
Leave Encashment: Payable on superannuation to eligible employees who have accumulated earned and half pay leave, subject to maximum limit of 300 days combined
for earned leave and half pay leave. Encashment of accumulated earned leave was also allowed up to 30 days once in a financial year up to 18th November, 2015 and
stopped thereafter.
Provident Fund: 12% of Basic Pay Plus Dearness Allowance, contributed to the Provident Fund Trusts by the company.
Post Retirement Medical Benefits: Available to retired employees at company's hospitals and/or under the health insurance policy.

74
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
Post Retirement Settlement Benefits: Payable to retiring employees for settlement at their home town.
Long term service Award: Payable in kind on rendering minimum 25 years of service and also on superannuation.
50.1.2 Other disclosures, as required under Ind AS 19 on 'Employee Benefits', in respect of defined benefit obligations are :
(a) Reconciliation of Present Value of Defined Benefit Obligations*:
(` crore)
Sl. Particulars Gratuity Leave Post Post Long Term
No. Encashment Retirement Retirement Service
Medical Settlement Award
Benefits Benefit

i) Present Value of projected benefit obligations, 6339.98 2785.70 963.66 116.66 22.95
as at the beginning of the year. (6153.06) (2740.01) (936.21) (103.73) (23.14)

ii) Service Cost 274.04 71.21 - - 1.16

(288.50) (124.27) (-) (-) (1.52)

iii) Interest Cost 447.86 198.85 67.92 8.51 1.62

(443.02) (198.91) (67.61) (7.65) (1.70)

iv) Actuarial Gains(-) / Losses(+) -306.28 181.63 21.62 14.78 -1.67

(-328.47) (35.10) (76.25) (14.01) (-1.03)

v) Past Service Cost - - - - -

(582.04) (-) (-) (-) (-)

vi) Benefits Paid 737.19 268.81 116.14 6.43 2.78

(798.19) (312.56) (116.44) (8.73) (2.40)

vii) Present Value of projected benefit obligations as 6018.40 2968.58 937.06 133.52 21.27
at the end of the year. (i+ii+iii+iv+v-vi) (6339.96) (2785.73) (963.63) (116.66) (22.93)

(b) Reconciliation of Fair Value of Assets and Obligations

The Company has funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets is mainly based on the information given by the insurance
companies through whom the investments have been made by the Fund. The reconciliation of fair value of assets of the Gratuity Fund and defined benefit gratuity obligations is
as under:
(` crore)
Sl. No. Particulars 2018-19 2017-18

i) Fair Value of plan assets as at the beginning of the year 6308.85 5836.33

ii) Expected return on plan assets 45.27 23.11

iii) Actual Company's contribution 187.28 798.07

iv) Interest Income/Actuarial Gain/Loss(-) 473.17 449.45

v) Benefits payments 737.19 798.19

vi) Fair value of plan assets as at the end of the year 6277.42 6308.85

vii) Present value of defined benefit obligation [50.1.2)(a)(vii)] 6018.40 6339.96

viii) Net liability recognised in the Balance sheet (vii)-(vi) * -259.15 31.11

*The Company does not expect to contribute any amount towards the expenses of Gratuity Fund during the year 2019-20, after considering the return on the investments.

The defined benefit obligations, other than gratuity, are non-funded.

75
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(c) Expenses recognised in the Statement of Profit & Loss for the Year :
(` crore)
Sl. Particulars Gratuity Leave Post Post Long Term
No. Encashment Retirement Retirement Service
Medical Settlement Award
Benefits Benefit

i) Service Cost 274.04 71.21 - - 1.16

(288.50) (124.27) (-) (-) (1.52)

ii) Interest Cost -25.31 198.85 67.92 8.51 1.62

(-6.34) (198.91) (67.61) (7.65) (1.70)

iii) Actuarial Gains (-)/Losses -306.28 181.63 21.62 14.78 -1.67

(-328.47) (34.85) (76.25) (14.01) (-1.03)

iv) Past Service Cost - - - - -

(582.04) ( - ) ( - ) ( - ) ( - )

v) Expected Return on Plan Assets 45.27 - - - -

(23.11) ( - ) ( - ) ( - ) ( - )

vi) Total (i+ii+iii+iv-v) -102.81 451.69 89.54 23.29 1.10

(512.60) (358.02) (143.86) (21.66) (2.19)

vii) Employees' Benefits Expenses :

a) Charged to Profit & Loss Account (Note 39) 247.62 447.61 67.92 23.29 1.10
(860.65) (357.55) (67.61) (21.66) (2.19)

b) Charged to Expenditure During Construction 1.14 4.08 - - -

(Note 5.1) (3.52) (0.47) ( - ) ( - ) ( - )

c) Charged to OCI -351.54 - 21.63 - -

(-351.58) ( - ) (76.25) ( - ) ( - )

d) Charged to Profit & Loss Account- Other Expenses - - - - -

( - ) ( - ) ( - ) ( - ) ( - )

viii) Actual Return on Plan Assets 518.64

(472.50)

(d) Effect of half percentage point change in the Discount rate on Employees' Benefit schemes
(` crore)
Sl. Particulars 0.5 percentage point decrease 0.5 percentage point increase
No. in discount rate in discount rate

i) Gratuity -205.62 193.94

ii) Leave -122.26 114.24

iii) Post Retirement benefit -57.04 52.50

iv) Long Term Service Award -1.37 1.24

v) Retirement Travelling Allowance -5.88 6.10

(e) Effect of one percentage point change in the salary escalation rate on Employees' Benefit schemes
(` crore)
Sl. Particulars One percentage point decrease One percentage point increase
No. in salary escalation rate in salary escalation rate

i) Gratuity 119.37 -111.95

ii) Leave 115.08 -122.08

76
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
(f) Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post-retirement medical benefits scheme.
(` crore)
Sl. Particulars One percentage point increase One percentage point decrease
No. in medical inflation rate in medical inflation rate

i) Post-retirement medical benefits -49.59 45.50

(g) Investments of Gratuity Trust

Particulars % of Investment
As at 31.03.2019 As at 31.03.2018

Insurance Investments 88.68 86.25

Central Government Securities 1.38 1.36

State Government Securities 3.00 4.24

PSU Bonds 6.93 8.12

Cash at Bank 0.01 0.03

Total 100.00 100.00

(h) Actuarial Assumptions

Sl. Description As at 31st March, 2019 As at 31st March, 2018
No.

i) Discount Rate (per annum) 7.50 % 7.70%

ii) Mortality rate IALM (2006-08) Ultimate IALM (2006-08) Ultimate

iii) Withdrawal Rates (per annum) Executives & Non-executives- 0.10% to 0.50% Executives & Non-executives- 0.10% to 0.50%
depending upon the age depending upon the age

iv) Medical Cost Trend Rates (per annum) 5% for hospital cost and Nil for Medi-claim premium. 5% for hospital cost and Nil for Medi-claim premium.

v) Estimated Rate of Return on Plan Assets 7.50% 7.70%

vi) Salary Escalation Executives : 6% p.a. Executives : 6% p.a.

Non-Executives : 6% p.a. Non-Executives : 6% p.a.
All employees- 6% step-up after every 10 years of All employees- 6% step-up after every 10 years of
service starting 2017. service starting 2017.

The estimate of future salary increases considered in actuarial valuation, takes into account inflation rate,
seniority, promotion and other relevant factors

(i) Maturity profile of Defined Benefit Obligations

(` crore)
Period As at 31st March, 2019

Upto 1 year 806.41

Between 1 to 2 years 817.96

Between 2 to 3 years 791.82

Between 3 to 4 years 751.69

Between 4 to 5 years 717.59

Between 5 to 10 years 2923.79

More than 10 years 4045.94

Total Undiscounted Payments related to Past Service 10855.20

Less: Discount for Interest 4836.80

Projected Benefit Obligation 6018.40

77
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
51. GENERAL
51.1 Segment Reporting
i) Business Segments: The five Integrated Steel Plants and three Alloy Steel Plants, being manufacturing units, have been considered as primary business segments for
reporting under Ind AS108, Operating Segments' issued by Ministry of Corporate Affairs.
ii) In the opinion of the management, the captive mines are not a reportable business segment of the Company as per Para 27 of Ind AS108, Operating Segments, issued by
Ministry of Corporate Affairs. As captive mines are supplying raw materials to various plants, the Mines have been treated as cost centre for accounting purpose.
51.2 Related Party
As per Ind AS 24-`Related Party Disclosures' issued by the Ministry of Corporate Affairs, the names of the related parties, are given below: -
A. Name of the related party and nature of relationship SAIL Provident Fund, New Delhi
Hindustan Steel Provident Fund, Ranchi
Subsidiary Companies
Hindustan Steel Limited, Central Purchase Organisation, Sales & Transport, Calcutta
SAIL-Jagdishpur Power Plant Limited
Provident Fund
SAIL Refractory Company Limited
Bharat Refractories Provident Fund, Bokaro
SAIL Sindri Projects Limited
IFICO Provident Fund, Ramgarh
Chhattisgarh Mega Steel Limited
CCSO Provident Fund, Dhanbad
Joint Venture Companies
SAIL RMD Establishment and Administrative Offices Employees Provident Fund, Kolkata
NTPC-SAIL Power Company Limited Bolani Ores Mines Provident Fund , Bolani
Bokaro Power Supply Company Private Limited SAIL Employees' Superannuation Benefit Fund
SAIL Bansal Service Centre Limited SAIL Gratuity Fund
Mjunction Services Limited
B. Key Management Personnel
Bhilai Jaypee Cement Limited
S&T Mining Company Private Limited Shri Anil Kumar Chaudhary
SAIL&MOIL Ferro Alloys Private Limited Shri P.K. Singh (upto 30th June, 2018)
International Coal Ventures Private Limited Shri Raman (upto 31st July, 2018)
SAIL-SCI Shipping Private Limited Dr. G. Vishwakarma
SAIL SCL Kerala Limited Smt Soma Mondal
SAIL-RITES Bengal Wagon Industry Private Limited Shri Harinand Rai (w.e.f. 1st August, 2018)
SAIL Kobe Iron India Private Limited Shri Atul Srivastava
TMTSAL SAIL JV Limited Shri Vivek Gupta (w.e.f. 1st May, 2018)
SALSAIL JVC Limited Shri K K Gupta (w.e.f. 21st December, 2018)
SAIL-Bengal Alloy Castings Private Limited Shri N K Taneja
Prime Gold-SAIL JVC Limited CA K S Chauhan
VSL SAIL JVC Limited Dr. Samar Singh
Abhinav-SAIL JVC Limited Shri Niranjan Sanyal
N.E. Steel & Galvanising Private Limited CA Parmod Bindal
North Bengal Dolomite Limited Smt. Anshu Vaish
Romelt-SAIL (India) Limited Prof. Ashok Gupta
NMDC SAIL Limited Shri M. Ravi (upto 9th October, 2018)
Shri A.K. Rath
Bastar Railway Private Limited
Shri Ashwini Kumar (upto 28th February, 2019)
GEDCOL SAIL Power Corporation Limited
Shri P K Singh
Associate Company
Shri A Dasgupta
Almora Magnesite Limited
Shri D Chattaraj
Other Companies
Shri Kalyan Maity (w.e.f. 8th December, 2018)
ICVL Mauritius
Shri S.K. Saha (upto 31st October, 2018)
Riverdale Mining (PTY) Limited (RML)
Shri P Saidev (upto 31st January, 2019)
Minas De Banga (Mauritius) Limited Mozambique
Shri Kajal Das
ICVL Zambeze Mauritius Limited
Smt. K Raman
Promark Services Limited RPU
Shri N Ramachandran (upto 30th June, 2018)
Benga Power Plant (Mauritius) Limited
Shri P.K.Mishra (upto 31st July, 2018)
Minas De Benga LDA
Shri A.V. Kamlakar (w.e.f. 21st November, 2018)
Benga Energia SA
Shri T S Prakash (upto 30th April, 2018)
IISCO Ujjain Pipe & Foundry Co. Limited
Shri S.K. Mishra
UEC-SAIL Information Technology Limited
Shri Mukul Akhori (upto 30th April, 2018)
Post Employment Benefit Plans
Shri S. K. Singh (5th November, 2018 to 31st December, 2018)
HSL BSP Provident Fund, Bhilai Shri Subir Mondal (w.e.f. 22nd November, 2018)
DSP Provident Fund, Durgapur Shri Ajay Arora (w.e.f. 1st January, 2019)
Hindustan Steel Ltd Contributory Provident Fund, Rourkela Shri Ram Gopal (w.e.f. 1st January, 2019)
Bokaro Steel Employees Provident Fund, Bokaro Shri Mukesh Chand Jain
IISCO Limited Provident Institution, Burnpur Shri R.K. Ahuja (upto 21st November, 2018)
IISCO Limited Provident Institution, Kolkata Shri Atul Saxena (upto 30th June, 2018)
IISCO Limited Works Provident Fund, Burnpur Shri S K Das (1st July, 2018 to 4th November, 2018)
SAIL ASP Provident Fund, Durgapur Shri A. Chidambaram (1st August, 2018 to 20th November, 2018)
Salem Steel Provident Fund, Salem Shri M.V. Zode (From 1st November, 2018 to 31st December, 2018)
Visvesvaraya Iron and Steel Plant Employees Provident Fund Trust, Bhadravati Shri C N Bhattacharya

78
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
C. Details of transactions between the Company and the Related Parties during the Year (` crore)
Sl. Particulars Subsidiary/Associate/ Key Management Total Note No. and Account Head
No. Joint Ventures Personnel
i) Purchase of Investment 35.48 35.48 8 : Investments
(100.07) (100.07)
ii) Advance for purchase - - 11/19 : Other Financial Assets
of shares (-0.66) (-0.66)
iii) Services rendered 11.05 11.05 35: Other income
(8.58) (8.58)
iv) Rental Income 0.26 0.26
(0.12) (0.12)
v) Dividend Received 42.71 42.71
(74.31) (74.31)
vi) Sale of Goods 6.44 6.44 34 : Revenue from Operations
(3.74) (3.74)
vii) Other Operating Revenues 5.47 5.47 34 : Revenue from Operations
(-) (-)
viii) Purchase of Goods 232.41 232.41 25/30 : Trade Payables
(153.51) (153.51)
ix) Purchase of Power 2134.94 2134.94 40 : Other Expenses
(2134.18) (2134.18)
x) Services received 58.06 58.06 40 : Other Expenses
(44.95) (44.95)
1.31 1.31 5 : Capital WIP
(1.48) (1.48)
xi) Interest Income 0.78 0.78
(0.74) (0.74)
xii) Managerial remuneration 8.11 8.11 38 : Employees' Benefits Expenses
(8.63) (8.63)

D. Balances with Related Parties as at the end of theYear (` crore)

Sl. Particulars Subsidiary/Associate/ Note No. and Account Head

No. Joint Ventures

i) Investments 1467.02 8 : Investments

(1431.54)

ii) Provision for investments 17.50

(17.68)

iii) Other Loans and Advances 43.36 24/29: Loans

(39.44)

iv) Provision for Loans and Advances 16.85

(16.85)

v) Advance for Purchase of shares 3.54 11/19 : Other Financial Assets

(3.54)

vi) Trade Receivable 6.69 9/16 : Trade Receivables

(4.93)

vii) Trade Payable 189.01 25/30 : Trade

(153.80) Payables

viii) Security Deposit 0.39 26/31 : Other financial liabilities

(0.33)

79
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
E. Disclosure of Material Transactions with Related Parties (` crore)
For the year ended For the year ended Note No. and
31st March 2019 31st March 2018 Account Head
Purchase of Investment
International Coal Ventures Pvt. Ltd. - 100.00 8 : Investments
Bastar Railway Ltd 35.22 -
NMDC SAIL Limited - 0.01
Chattisgarh mega Steel limited - 0.02
GEDCOL SAIL Power Corporation Limited 0.26 0.04
Advance for Purchase of Shares
SAIL SCL Kerela Limited - -0.66 11/19 :Other Financial Assets
Sale of Goods
Bhilai Jaypee Cement Limited 1.42 3.74 34: Revenue from Operations
SAIL Refractory Co. Ltd 3.92 -
NTPC-SAIL Power Supply Co. Ltd. 1.10 -
Other Operating Revenues
NTPC-SAIL Power Supply Co. Ltd. 5.47 - 34: Revenue from Operations
Purchase of Goods
SAIL Refractory Co. Ltd. 220.67 141.81 25/30 : Trade Payables
Almora Magnesite Ltd 11.74 11.70
Purchase of Power
Bokaro Power Supply Co. Pvt. Ltd. 839.93 815.72 40 : Other Expenses
NTPC-SAIL Power Supply Co. Ltd. 1295.01 1318.46
Dividend Income
Mjunction Services Limited 6.00 5.60 35: Other income
SAIL Refractory Co. Ltd. 4.26 6.31
Bokaro Power Supply Co. Pvt. Ltd. 12.40 12.40
NTPC-SAIL Power Supply Co Ltd. 20.00 50.00
SAIL-Bansal Services Centre Ltd. 0.05
Services Rendered
BhilaiJaypee Cement Limited 0.67 1.46
Mjunction Services Limited 7.08 5.65
SAIL-Bansal Services Centre Ltd. 0.04 1.12
Bokaro Power Supply Co. Pvt. Ltd 1.91 0.35
SAIL Refractory Co. Ltd. 1.35
Auction services
Mjunction Services Limited 58.06 44.95 40 : Other Expenses
1.31 1.48 5 : Capital WIP
Conversion Charges
SAIL-Bansal Services Centre Limited 1.72 1.77 40 : Other Expenses

F. During the year, Sales and Trade Receivables include `10665.71 crore (`11770.05 crore) and `2222.39 crore (`2063.36 crore) for transactions with the Central Government
(including Indian Railways) which constitute 16.09% (20.19 %) and 49.44% (53.31%) of the Sales and Trade Receivables respectively.

51.3 Disclosures of provisions required by Indian Accounting Standards (Ind AS)37 'Provisions, Contingent Liabilities and Contingent Assets:
Brief Description of Provisions :
Mines afforestation costs - Payable on renewal (including deemed renewal)/forest clearance of mining leases to Government authorities, towards afforestation cost at mines for
use of forest land for mining purposes.
Mines closure costs - Estimated liability towards closure of mines, to be incurred at the time of cessation of mining activities.
Overburden backlog removal costs - To be incurred towards removal of overburden backlog at mines over the future years.
(` crore)
Movement of provisions Mines afforestation costs Mines closure costs Over burden removal costs Total
Balance as at 1st April, 2018 202.09 67.30 117.16 386.55
Additions during the Year 0.24 12.74 41.66 54.64
Amounts utilised during the Year 0.25 (0.63) 0.00 (0.38)
Unused amount reversed during the Year 0.00 0.00 7.45 7.45
st
Balance as at 31 March, 2019 202.08 80.67 151.37 434.12

51.4 Particulars in respect of Loans and advances as per the disclosure requirement of regulation 34(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations 2015: (` crore)
Name of the subsidiary Company* Loans and advances in the nature of loans Maximum amount of loans and advances in the
outstanding as at the end of the year nature of loans outstanding during the year

IISCO Ujjain Pipe and Foundry Co. Limited 2.53* 2.53

(under liquidation) (2.53)* (2.53)
* ` 2.53 crore (`2.53 crore), being doubtful of recovery has been provided for in the books of accounts.
i) No loans have been given (other than loans to employees), wherein there is no repayment schedule or repayment is beyond seven years; and
iii) There are no loans and advances in the nature of loans, to firms/companies, in which directors are interested.
51.5 The figures of previous periods have been re-grouped, wherever necessary, so as to conform to the current periods classification.

80
Notes to Standalone Financial Statements for the Year ended 31st March, 2019
52. OPERATING SEGMENT INFORMATION
(` crore)
PARTICULARS BSP DSP RSP BSL ISP ASP SSP VISL OTHERS INTER Total
SEGMENT
SALES

REVENUE
- External Sales
Current Year ended 31st March 2019 16,463.61 8,788.65 14,510.32 16,167.83 7,762.59 630.85 1,687.49 122.88 133.08 66,267.30
Previous Year ended 31st March 2018 15,994.93 7,168.64 12,210.22 14,039.97 6,811.00 442.88 1,344.11 142.18 143.33 58,297.26
- Inter segment sales
Current Year ended 31st March 2019 302.60 263.52 998.51 91.42 168.62 184.05 7.63 52.80 4,862.59 (6,931.74) -
Previous Year ended 31st March 2018 299.80 184.88 217.67 211.33 73.02 206.18 12.70 18.36 3,881.30 (5,105.24) -
- Total Revenue from sale of products
Current Year ended 31st March 2019 16,766.21 9,052.17 15,508.83 16,259.25 7,931.21 814.90 1,695.12 175.68 4,995.67 (6,931.74) 66,267.30
Previous Year ended 31st March 2018 16,294.73 7,353.52 12,427.89 14,251.30 6,884.02 649.06 1,356.81 160.54 4,024.63 (5,105.24) 58,297.26
RESULT
- Operating Profit / (-) Loss before Interest
and Exceptional items
Current Year ended 31st March 2019 1,608.91 586.63 2,109.74 2,290.86 303.46 (5.28) (120.50) (73.49) 181.88 6,882.21
Previous Year ended 31st March 2018 1,240.52 (58.57) 398.70 804.13 (329.50) (25.84) (118.24) (108.34) 234.52 2,037.38
- Finance cost
Current Year ended 31st March 2019 3,154.92
Previous Year ended 31st March 2018 2,822.75
- Exceptional items
Current Year ended 31st March 2019 389.40
Previous Year ended 31st March 2018 (26.43)
- Tax expenses
Current Year ended 31st March 2019 1,159.07
Previous Year ended 31st March 2018 (277.23)
- Profit / Loss (-) for the year
Current Year ended 31st March 2019 2,178.82
Previous Year ended 31st March 2018 (481.71)
OTHER INFORMATION
- Segment assets
Current Year ended 31st March 2019 31,549.20 6,548.52 20,076.32 15,292.37 18,856.76 572.30 2,856.49 419.41 20,266.36 1,16,437.73
Previous Year ended 31st March 2018 28,756.68 6,400.05 19,484.61 14,524.30 18,770.09 518.32 2,459.07 533.47 22,743.21 1,14,189.80
- Segment Liabilities
(including Long Term Borrowing)
Current Year ended 31st March 2019 7,709.02 2,451.24 4,421.29 3,418.32 1,693.55 198.85 368.95 66.57 57,958.37 78,286.16
Previous Year ended 31st March 2018 7,409.47 2,364.33 4,017.17 3,746.95 1,922.70 207.46 383.28 79.88 58,344.89 78,476.13
- Capital expenditure
Current Year ended 31st March 2019 1,304.73 139.23 1,012.87 1,121.28 147.21 2.95 9.18 1.48 207.91 3,946.84
Previous Year ended 31st March 2018 2,481.46 296.50 1,638.38 1,362.65 599.44 2.89 7.82 2.15 386.53 6,777.82
- Depreciation
Current Year ended 31st March 2019 692.29 200.20 754.72 611.36 746.73 9.08 99.23 7.22 263.89 3,384.72
Previous Year ended 31st March 2018 512.86 195.57 721.75 561.87 724.35 11.44 95.74 7.30 234.04 3,064.92
- Non Cash expenses other than
Depreciation
Current Year ended 31st March 2019 26.75 15.34 10.54 6.66 21.86 1.48 0.44 0.10 159.27 242.44
Previous Year ended 31st March 2018 19.00 11.34 15.26 56.00 36.79 2.00 14.17 2.81 58.37 215.74

81
 Annexure-I to the Board’s Report

Independent Auditors’ Report on Standalone Financial Statements

Comments Management’s Replies
Report on the Audit of Standalone Indian Accounting Standards (Ind AS) Financial Statements
Qualified Opinion
We have audited the accompanying Standalone Ind AS Financial Statements of STEEL AUTHORITY OF INDIA
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2019, the Statement of Profit
and Loss, (including Other Comprehensive Income), the Cash Flow Statement, the Statement of Changes in
Equity for the year then ended, and notes to the Standalone Ind AS Financial Statements, including a summary
of significant accounting policies and other explanatory information (hereinafter referred to as "Standalone
Ind AS Financial Statements"), in which are included the Returns of 8 branches for the year ended on that
date audited by the branch auditors of the Company's branches .
In our opinion and to the best of our information and according to the explanations given to us, and based on
the consideration of reports of the branch auditors on separate Ind AS Financial Statements of the branches
referred to in the Other Matters section below, except for the effect of the matters described in the Basis for
Qualified Opinion section of our report, the aforesaid Standalone Ind AS Financial Statements give the information
required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India including Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015
(as amended), of the state of affairs of the Company as at 31st March, 2019 and its profit (including total
comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for Qualified Opinion
The Company has not provided for : In respect of item stated at (i), the Company's view is that the
(i) Demand for Entry tax in various states amounting to `1,637.35 crore as on 31st March, 2019 [Refer Nine Judges Bench of Hon'ble Supreme Court, vide its judgment
Note No. 47.2(a)] and dated 11th November, 2016, upheld the constitutional validity of
levy of Entry Tax by the States and has laid down principles/
(ii) Amount paid to Damodar Valley Corporation (DVC) in earlier years against bills raised for supply of
power and retained as advance to DVC by Bokaro Steel Plant amounting to `587.72 crore as on 31st tests on levy of Entry Tax Acts in various States. The respective
March, 2019 [Refer Note No.47.2(b)]; regular benches of the Apex Court would hear the matters as
per laid down principles. Pending decision by the regular benches
Had the impact of all the above qualifications been considered, Total Comprehensive Income (net of tax) for
of the Apex Cour t on levy of entry tax in the States of
the year ended 31st March, 2019 would have been `990.36 crore against reported Total Comprehensive
Income (net of tax) of `2,437.90 crore, overstatement of other equity as on 31st March 2019 by `1,447.54
Chhattisgarh, Odisha, Jharkhand and in respect of the case
crore, understatement of current liability by `2,225.07 crore and understatement of asset by `777.53 crore. pertaining to West Bengal Taxation Tribunal, the Entry Tax
demands under dispute have been treated as contingent liabilities.
In respect of item stated at (ii), the Company's view is that the
cases are sub-judice and pending for adjudication before the
various judicial authorities for a long time. Further, the civil appeal
filed by DVC pertaining to tariff of 2004-09 against the Order of
the Appellate Tribunal for Electricity (APTEL), have been
dismissed by the Hon'ble Supreme Court of India vide its Order
dated 3rd December, 2018. Accordingly, State Electricity
Regulatory Commission (SERC) will finalise the retail tariff as
directed by APTEL, the financial implication of which can only
be ascertained after the Tariff fixation by SERC.
The above stated disputed demands, stated at (i) and (ii) above,
contested on valid and bonafide grounds, have been treated as
contingent liabilities as it is not probable that present obligations
exist as on 31st March, 2019. Therefore, there is no adverse
impact on Profit for the year.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143
(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities
for the Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together
with the ethical requirements that are relevant to our audit of the Standalone Ind AS Financial Statements
under the provisions of the Companies Act, 2013 and the Rules issued there under and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
opinion.
Emphasis of Matter
We draw attention to the following
I Pending negotiations with National Joint Committee for the Steel Industry (NJCS) for wage revision and
in terms of DPE office memorandums, in view of negative figures of average profit before tax of previous
three years and also based on the opinion of Expert Advisory Committee of ICAI, Company has not
made any provision towards wages revision (pending since 01.01.2017) for non-executive employees
(Refer to Note No.47.13);
II Gross sales include sales to Government agencies for `5,012.76 crore for the year ended 31st March
2019 (cumulative upto 31st March, 2019 `17,252.66 crore) which is recognized on provisional contract
prices (Refer Note No. 49.2).
Our opinion is not qualified in respect of these matters.

82
 Comments Management’s Replies

Information Other than the Financial Statements and Auditors' Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises
the information included in the Management Discussion and Analysis, Board's Report including Annexure to
Board's Report, Business Responsibility Report and Corporate Governance Report, but does not include the
Standalone Ind AS Financial Statements and our auditors' report thereon.
Our opinion on the Standalone Ind AS Financial Statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Ind AS Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent with the
Standalone Ind AS Financial Statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information; we are required to report that fact. We have concluded that such material misstatement of the
other information exists in respect of matters described in the Basis for Qualified Opinion section above.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the Standalone Ind AS Financial Statements of the current period. These matters were addressed in the
context of our audit of the Standalone Ind AS Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. In addition to the matters described in
the Basis for Qualified Opinion and Emphasis of Matter sections, we have determined the matters described
below to be the key audit matters to be communicated in our report:

S.No. Key Audit Matter Auditors' Response to Key Audit Matters

1. Provisions and Contingent Liabilities

The Company is subject to a number of legal, In order to get a sufficient understanding of
regulatory and tax cases for which final outcome litigations and contingent liabilities, we have
cannot be easily predicted and which could discussed the process of identification
potentially result in significant liabilities. implemented by the Management for such
Management's disclosures with regards to provisions through various discussions with
contingent liabilities are presented in Note Nos. Company's legal and finance departments.
47 and 48.5 read with Note No. 3.17 to the We read the summary of litigation matters
Standalone Ind AS Financial Statements. provided by the Company's/ Unit's Legal and
The assessment of the risks associated with the Finance Team.
litigations is based on complex assumptions. We read, where applicable, external legal or
This requires use of judgment to establish the regulatory advice sought by the Company.
level of provisioning, increases the risk that We discussed with the Company's/ Unit's
provisions and contingent liabilities may not be Legal and Finance Team certain material
appropriately provided against or adequately cases noted in the report to determine the
disclosed. Accordingly, this matter is considered Company's assessment of the likelihood,
to be a key audit matter. magnitude and accounting of any liability
that may arise.
In light of the above, we reviewed the amount
of provisions recorded and exercised our
professional judgment to assess the
adequacy of disclosures in the Standalone
Ind AS financial statements.
2. Tax Expenses
Provision for current tax (including Minimum Considered the taxable profits of the
Alternate Tax on Book Profits) is dependent upon Company and taxes paid, obtained details
availability of brought forward losses, of carry forward losses and details of
depreciation as per income tax/ books of estimate of taxable incomes for future
accounts, statement of profit and loss, balance periods.
sheet, etc.
Tested period over which deferred tax assets
Deferred Tax Assets on unabsorbed depreciation on such unabsorbed losses would be
and carry forward losses are to be recognized recovered against future taxable income
to the extent that it is probable that future taxable including Management's underlying
profit will be available against which the unused assumptions.
tax losses and unused tax credits can be utilized.
Reviewed on overall basis, internally as well
Refer Note No. 12 and 48.6 to the standalone as the opinions given by legal/ tax experts
Ind AS Financial Statements. on various issues along with various judicial/
jurisdictional pronouncements available on
certain issues.
3. Property, Plant & Equipment and Intangible
Assets
There are areas where Management judgements We assessed the controls in place, evaluated
impact the carrying value of property, plant and the appropriateness of capitalization
equipment, intangible assets and their respective process, performed tests of details on costs

83
 Comments Management’s Replies

S.No. Key Audit Matter Auditors' Response to Key Audit Matters

depreciation and amortization amounts. These capitalized, the timeliness of the

include the decision to capitalize or expense capitalization of assets and the de-
costs; the annual asset life review; the timeliness recognition criteria for assets retired from
of the capitalization of assets and the use of active use.
Management assumptions and estimates for the In per forming these procedures, we
determination or the measurement and reviewed the judgments made by
recognition criteria for assets retired from active management including the nature of
use. Due to the materiality in the context of the underlying costs capitalized; determination
balance sheet of the Company and the level of of realizable value of the assets retired from
judgements and estimates required, we consider active use; the appropriateness of asset live
this to be a key audit matter. applied in the calculation of depreciation;
useful lives of assets as per the technical
assessment of the management and external
technical experts. We have observed that
there are no material changes.
4. Capital Work-in- Progress We per formed an understanding and
The Company is in the process of executing evaluation of system of internal control over
various projects like installation and expansion the capital work-in-progress, with reference
of mills, facilities, etc. These projects take a to identification and testing of key controls.
substantial period of time to get ready for We assessed the progress of the projects
intended use. Due to the materiality in the context and the intention of the management to carry
of the balance sheet of the Company and the forward and bring the asset to its state of
level of judgements and estimates required, we intended use.
consider this to be a key audit matter.

Management's Responsibility for the Standalone Ind AS 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 Ind AS Financial Statements that
give a true and fair view of the financial position, financial performance (including other comprehensive
income), cash flows and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133
of the Act, read with of the Companies (Indian Accounting Standards) Rules, 2015 (as amended). This
responsibility also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding 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 Standalone Ind AS Financial Statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS Financial Statements, management is responsible for assessing the
Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS Financial Statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
Standalone Ind AS Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Ind AS Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also
responsible for expressing our opinion on whether the company has adequate internal financial controls
system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions

84
 Comments Management’s Replies
that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the Standalone Ind AS Financial Statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the Standalone Ind AS Financial Statements,
including the disclosures, and whether the Standalone Ind AS Financial Statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the Standalone Ind AS Financial Statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
We did not audit the financial statements of 8 branches included in the Standalone Ind AS Financial Statements
of the Company whose financial statements reflect total assets of `46,594.92 crore as at 31st March, 2019
and total revenue from operations of `24,376.35 crore for the year ended on that date. The financial statements
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 modified 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 in terms of sub section 11 of Section 143 of the Act, we give in the Annexure 1, a statement
on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, based on our audit and on the consideration of the reports of
the branch auditors on the separate financial statement of the branches, referred to in other matters
above, we report, to the extent applicable, 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 section above, 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.
(c) The reports on the accounts of the branch offices of the Company audited under Section 143(8)
of the Act by the branch auditors have been sent to us and have been properly dealt with by us in
preparing this report.
(d) The Balance Sheet and the Statement of Profit and Loss including Other Comprehensive Income,
the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in
agreement with the relevant books of account.
(e) Except for the effects of the matters described in the Basis for Qualified Opinion section above, in
our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian Accounting
Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued there
under.
(f) The matters described in the Basis for Qualified Opinion section 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
- 2.
(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 (as amended), 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
Standalone Ind AS Financial Statements (Refer Note No. 47 and 48.5);
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses and

85
 Comments Management’s Replies
iii. The Company has not transferred to the Investor Education and Protection Fund, an amount The Matured Deposits have already been claimed by the successors/
of `120,75,460/-being Unclaimed Matured Deposits which the Company was required to relatives of the individuals but are pending for submission of
transfer to the said Fund since the financial year 2017-18. document of proof of legal heir by the claimants. Appropriate
procedure is being followed for refunding the Matured Deposits to
the legal heirs.

3. As required by section 143(5) of the Act, we give in Annexure - 3, a statement on the matters specified
in the Directions issued by the Comptroller and Auditor General of India in respect of the Company.
4. 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 Act is not applicable to the Government Companies.

For Singhi & Co. For Chatterjee & Co. For and on behalf of Board of Directors
Chartered Accountants Chartered Accountants
Firm Registration No. 302049E Firm Registration No. 302114E

Sd/- Sd/- Sd/-

(Shrenik Mehta) (Bedanta Bhattacharya) (Anil Kumar Chaudhary)
Partner Partner Chairman
M.No. 063769 M.No. 060855

For A.K.Sabat & Co. For V.K. Dhingra & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 321012E Firm Registration No. 000250N

Sd/- Sd/-
(A.K. Sabat) (Vipul Girotra)
Partner Partner
M.No.030310 M.No. 084312

Place : New Delhi Place : New Delhi

Dated : 30th May, 2019 Date : 28th June, 2019

86
Annexure-1 to the Independent Auditors' Report on Standalone Financial Statements
Comments Management’s Replies
We report that:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing in most cases, full particulars including quantitative details and situation Necessary action is being taken to
of its fixed assets. However, the location and the extent of arrear in respect of a few lands needs to be updated in the fixed update location and extent of area in
assets register and have to be reconciled with the revenue records as to the extent of holding and location of land. The delay respective plants in fixed assets
is attributable to procedural matters involved in ascertaining and reconciling with revenue records maintained by the revenue registers. This is a continuous process.
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 manner Necessary action is being taken to evict
so as to generally cover all the assets once in three years. However, it is observed certain land and buildings are under the occupants from land and buildings
encroachments/ unauthorised occupation. As informed, no material discrepancies have been noticed on such verification. In under encroachment/unauthorised
our opinion these periodicity of physical verification is reasonable having regard to the size of the Company and nature of its occupation.
assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
the title/lease deeds of immovable properties are held in the name of the Company except in the following cases:
Particulars Freehold Land Leasehold Land Building

Area not in name of the Company 46587.26 acres 17244.15 acres 571.24 sq mts

Gross Block thereof `crore 175.00 149.10 0.48

Net Block thereof `crore 175.00 126.89 0.31

(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, which were not material, 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, limited liability partnership or other parties covered in the register maintained under section 189 of
the Companies Act, 2013. Hence, the clauses (iii) (a), (iii) (b) and (iii) (c) of the paragraph 3 of the order are not applicable to the
Company.
(iv) In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of
Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made. The Company has not provided any
guarantees and security, covered under Section 185 and 186 of the Companies Act, 2013.
(v) The Company has not accepted any deposits from public within the meaning of Sections 73 to 76 of the Companies Act 2013 and
rules framed there-under during the year. Accordingly paragraph 3(v) of the order is not applicable to the Company.
(vi) Pursuant to the rules made by the central government of India, the Company is required to maintain Cost Records as specified under
section u/s 148(1) of the Act in respect of its products.
We have broadly reviewed the same and are of the opinion that prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of the records with a view to determine whether these are
accurate and complete.
(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, Goods and Service Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Taxes,
Cess and other Statutory Dues with 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, 2019.
b. According to the information and explanations given to us, there are disputed statutory dues, which have not been deposited
as on 31st March, 2019 as given herein below:
Statute Nature of Dues Amount Forum where disputes
(` crore) are pending
Sales Tax Sales Tax and VAT Demands 10.45 Supreme Court
& VAT 494.15 High Courts
597.33 Sales Tax Tribunal
186.32 Sales Tax Department
Goods and Services GST demands 16.63 High Court
Tax
Entry Tax Entry Tax Demands 1257.26 Supreme Court
484.06 High Courts
758.68 Tribunal
48.22 Department

87
 Comments Management’s Replies

Central Excise Act, Excise Duty 295.95 Supreme Court

1944 333.37 High Courts
4109.99 CESTAT
518.03 Department
0.32 BIFR
Service Tax Service Tax 34.32 High Courts
64.07 CESTAT
202.58 Department
Customs Duty Customs Duty 4.20 CESTAT
1.71 Department
Income Tax Act, 1961 TDS on Perks 2.32 Supreme Court
134.60 High Court
Other TDS matters 0.22 ITAT
21.93 Department
Income Tax Disputes 194.52 High Courts
552.99 ITAT
47.61 Department
TOTAL 10,371.83

(viii) The Company has not defaulted in repayment of loans or borrowings to 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) According to the information and explanations given to us, the Company has not raised any money by way of initial public offer or
further public offer (including debt instrument). Term loans from banks and financial institutions have been applied for the purpose
for which they were obtained.
(x) To the best of our knowledge and belief and according to the information and explanations given to us and based on the audit
procedures performed, we report that no case of material fraud by the Company or on the Company by its officers or employees has
been noticed or reported during the year.
(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 Act is not applicable to the Government Companies. Accordingly, paragraph 3 (xi) of the Order is not applicable to the
Company.
(xii) In our opinion and 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 177 and 188 of the Act where applicable and details of such transactions
have been disclosed in the Standalone Ind AS Financial Statements as required under Ind AS 24 'Related Party Disclosures' specified
under Section 133 of the Act read with relevant rules.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the
Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the
year. Accordingly, paragraph 3 (xiv) of the Order is not applicable to the Company.
(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 to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph
3(xvi) of the Order is not applicable to the Company.

For Singhi & Co. For Chatterjee & Co. For and on behalf of Board of Directors
Chartered Accountants Chartered Accountants
Firm Registration No. 302049E Firm Registration No. 302114E

Sd/- Sd/- Sd/-

(Shrenik Mehta) (Bedanta Bhattacharya) (Anil Kumar Chaudhary)
Partner Partner Chairman
M.No. 063769 M.No. 060855

For A.K.Sabat & Co. For V.K. Dhingra & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 321012E Firm Registration No. 000250N

Sd/- Sd/-
(A.K. Sabat) (Vipul Girotra)
Partner Partner
M.No.030310 M.No. 084312
Place : New Delhi
Place : New Delhi Date : 28th June, 2019
Dated : 30th May, 2019

88
Annexure-2 to the Independent Auditors' Report on Standalone Financial Statements
Comments Management’s Replies

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of the Steel Authority of India Limited ("the
Company") as of 31 March, 2019 in conjunction with our audit of the Standalone Ind AS Financial Statements of
the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial reporting considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company's policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable financial information, as required under the Companies
Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of
Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such controls operated effectively
in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including
the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due
to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of Standalone Ind AS Financial Statements for
external purposes in accordance with generally accepted accounting principles. A Company 's internal financial
control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
Standalone Ind AS Financial Statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the Company are being made only in accordance with authorisations of Management
and Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the Company's assets that could have a material effect on the
Standalone Ind AS Financial Statements.

89
 Comments Management’s Replies

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of
collusion or improper management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to
future periods are subject to the risk that the internal financial control over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over
financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st
March, 2019, based on the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Singhi & Co. For Chatterjee & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 302049E Firm Registration No. 302114E

Sd/- Sd/-
(Shrenik Mehta) (Bedanta Bhattacharya)
Partner Partner
M.No. 063769 M.No. 060855

For A.K.Sabat & Co. For V.K. Dhingra & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 321012E Firm Registration No. 000250N

Sd/- Sd/-
(A.K. Sabat) (Vipul Girotra)
Partner Partner
M.No.030310 M.No. 084312

Place : New Delhi

Dated : 30th May, 2019

90
Annexure-3 to the Independent Auditors' Report on Standalone Financial Statements
Comments Management’s Replies

On the directions issued by the Comptroller and Auditor General of India under sub section 5 of section 143 of the Companies Act,
2013, based on the verification of records of the Company and information and explanations given to us, we report that:

A. Directions under Section 143(5) of Companies Act, 2013

QUESTIONS AUDITOR'S COMMENTS

1. Whether the Company has a system The company uses SAP software for processing accounting transactions in respect
in place to process all the accounting of four integrated steel plants and central marketing organisation. In respect of
transactions through IT system? If other plants/ units Company uses legacy software systems.
yes, the implications of processing of
accounting transactions outside IT Based on our audit, on test basis, and based on reports received from the branches,
system on the integrity of the wherever the accounting transactions are based on workings outside IT system,
accounts along with the financial no instances of lack of integrity of accounts and no financial implications has been
implications, if any, may be stated. noted/ reported.

2. Whether there is any restructuring of As per information and explanations obtained there was no restructuring of an
an existing loan or cases of waiver/ existing loan or cases of waiver/ write off of debts/loans/interest etc., made by a
write off of debts/loans/interest etc., lender to the company due to the company's inability to repay the loan.
made by a lender to the company due
to the company's inability to repay the
loan? if yes, the financial impact may
be stated.

3. Whether funds received/ receivable To the best of our information, checks applied by us during the course of our audit
for specific schemes from Central/ and based on reports received from the branches/ units, we are of the opinion that
State agencies were properly funds received/ receivable for specific schemes from Central/ State agencies were
accounted for/ utilized as per its terms properly accounted for/ utilized as per its terms and conditions.
and conditions? List the cases of
deviation.

For Singhi & Co. For Chatterjee & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 302049E Firm Registration No. 302114E

Sd/- Sd/-
(Shrenik Mehta) (Bedanta Bhattacharya)
Partner Partner
M.No. 063769 M.No. 060855

For A.K.Sabat & Co. For V.K. Dhingra & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 321012E Firm Registration No. 000250N

Sd/- Sd/-
(A.K. Sabat) (Vipul Girotra)
Partner Partner
M.No.030310 M.No. 084312

Place : New Delhi

Dated : 30th May, 2019

91
 Annexure-II to the Board’s Report
Comments of C&AG
COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT,
2013 ON THE STANDALONE FINANCIAL STATEMENTS OF STEEL AUTHORITY OF INDIA LIMITED FOR THE YEAR ENDED
31 MARCH 2019

The preparation of Financial Statements of STEEL AUTHORITY OF INDIA LIMITED for the year ended 31 March 2019 in accordance with the financial reporting
framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The Statutory Auditors appointed by the
Comptroller and Auditor General of India under Section 139(5) of the Act are responsible for expressing opinion on the Financial Statements under section 143 of
the Act based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the Act. This is stated to have been done by
them vide their Audit Report dated 30 May, 2019.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 143(6)(a) of the Act of the Financial Statements
of STEEL AUTHORITY OF INDIA LIMITED for the year ended 31 March, 2019. This supplementary audit has been carried out independently without access to the
working papers of the Statutory Auditors and is limited primarily to inquiries of the Statutory Auditors and company personnel and a selective examination of some
of the accounting records. On the basis of my audit, nothing significant has come to my knowledge which would give rise to any comment upon or supplement to
Statutory Auditors' Report.

For and on the behalf of the

Comptroller & Auditor General of India

Sd/-
(Indu Agrawal)
Principal Director of Commercial Audit &
Ex-Officio Member, Audit Board, Ranchi

Place : Ranchi
Dated : 27th July, 2019

92
 Annexure-III to the Board’s Report

Secretarial Audit Report

Form No. MR-3
{Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 and Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015}

To, (c) The Securities and Exchange Board of India (Issue and Listing
The Members, of Debt Securities) Regulations, 2008;
Steel Authority of India Limited.
(d) The Securities and Exchange Board of India (Registrars to an
We have conducted the Secretarial Audit of the compliance of applicable Issue and Share Transfer Agents) Regulations, 1993 regarding
statutory provisions and the adherence to good corporate practices by Steel the Companies Act and dealing with client;
Authority of India Limited (hereinafter called SAIL/the Company). Secretarial
Audit was conducted in a manner that provided us a reasonable basis for (e) The Securities and Exchange Board of India (Issue of Capital
evaluating the corporate conducts/statutory compliances and expressing our and Disclosure Requirements) Regulations, 2009; Not
opinion thereon. applicable

(f) The Securities and Exchange Board of India (Employee Stock

Based on our verification of the SAIL's books, papers, minute books, forms
Option Scheme and Employee Stock Purchase Scheme)
and returns filed and other records maintained by the Company and also the
Guidelines, 1999; Not applicable
information provided by the Company, its officers, agents and authorized
representatives during the conduct of secretarial audit, we hereby report that,
(g) The Securities and Exchange Board of India (Delisting of Equity
in our opinion, the Company has, during the audit period covering the financial
Shares) Regulations, 2009; Not applicable
year ended on 31st March, 2019 complied with the statutory provisions listed
hereunder and also that the Company has proper Board- processes and (h) The Securities and Exchange Board of India (Buyback of
Compliance-mechanism in place to the extent, in the manner and subject to Securities) Regulations, 1998; Not applicable
the reporting made hereinafter:
(vi) Compliances/processes/systems under following specific applicable
We have examined the books, papers, minute books, forms and returns filed Laws (as applicable to the industry) to the Company are being verified
and other records maintained by SAIL for the financial year ended on on the basis of periodic certificate submitted to the Board of Directors
31st March, 2019 according to the provisions of: of the Company:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder; (a) Mines Act, 1952

(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules (b) Mines and Mineral (Regulation and Development) Act, 1957
made thereunder;
(c) The Factories Act, 1948
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed
(d) Explosives Act, 1884
thereunder;

We have also examined compliance with the applicable clauses of the following:
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations
made thereunder to the extent of Foreign Direct Investment, Overseas (a) Secretarial Standards, as amended from time to time, issued by the
Direct Investment and External Commercial Borrowings; Institute of Company Secretaries of India. Generally complied with.

(v) The following Regulations and Guidelines prescribed under the (b) The Securities and Exchange Board of India (Listing Obligations &
Securities and Exchange Board of India Act, 1992 ('SEBI Act'), as Disclosure Requirements) Regulations, 2015 with National Stock
applicable:- Exchange of India Limited & BSE Limited.

(a) The Securities and Exchange Board of India (Substantial (c) DPE Guidelines on Corporate Governance for CPSE.
Acquisition of Shares and Takeovers) Regulation, 2011;
During the period under review the Company has complied with the provisions
(b) The Securities and Exchange Board of India (Prohibition of of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above,
Insider Trading) Regulations, 2015; subject to the following observations:

93
Observation No. 1 Non-compliance of Regulation 17(10) & 25(4) of Securities We further report that there are adequate systems and processes in the
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Company commensurate with the size and operations of the Company to
Regulations, 2015, the Company has not carried out the performance monitor and ensure compliance with applicable laws, rules, regulations and
evaluation of the Directors. guidelines.

Observation No. 2 Non-compliance of Regulation 19 (4) read with Schedule We further report that during the audit period, there were no specific events/
II Part D (A) of Securities and Exchange Board of India (Listing Obligations actions having a major bearing on the Company's affairs in pursuance of the
and Disclosure Requirements) Regulations, 2015, the Nomination and above referred laws.
Remuneration Committee has not formulated the policies and criteria's as
defined under the regulation.

We further report that the Board of Directors of the Company was not duly
constituted with proper balance of Executive Directors, Non- Executive Directors For Agarwal S. & Associates,
and Independent Directors for the period from 07th May, 2018 to 30th June,
Company Secretaries,
2018. The changes in the composition of the Board of Directors that took
place during the period under review were carried out in compliance with the Sd/-
provisions of the Act. CS Sachin Agarwal
Partner
Generally, adequate notice is given to all Directors to schedule the Board FCS No. : 5774
Meetings, agenda and detailed notes on agenda were sent at least seven days C.P No. : 5910
in advance, and a system exists for seeking and obtaining further information
Place: New Delhi
and clarifications on the agenda items before the meeting and for meaningful
Date: 19.07.2019
participation at the meeting from Directors.

All the decisions made in the Board/Committee meeting(s) were carried out
This report is to be read with our letter of even date which is annexed as
with unanimous consent of all the Directors/Members present during the
"Annexure A" and forms an integral part of this report.
meeting and dissent, if any, have been duly incorporated in the Minutes.

Annexure 'A' to Secretarial Audit Report

To, 5. The Compliance of the provisions of corporate and other applicable
The Members, laws, rules, regulations, standards are the responsibility of
Steel Authority of India Limited management. Our examination was limited to the verification of
procedures on test basis and to give our opinion whether Company
Our report of even date is to be read along with this letter.
has proper Board-processes and Compliance-mechanism in place or
1. Maintenance of secretarial record is the responsibility of the not.
management of the Company. Our Responsibility is to express an
6. The Secretarial Audit Report is neither an assurance as to future viability
opinion on these secretarial records, based on our inspection of records
of the Company nor of the efficacy or effectiveness with which the
produced before us for Audit.
management has conducted the affairs of the Company.
2. We have followed the audit practices and processes as were appropriate
to obtain reasonable assurance about the correctness of the contents
of the secretarial records. The verification was done on test basis to
ensure that correct facts are reflected in secretarial records. We believe For Agarwal S. & Associates,
that the processes and practices, we followed provide a reasonable
Company Secretaries,
basis for our opinion.

3. We have not verified the correctness and appropriateness of financial Sd/-

records and Books of Accounts of the Company and our report is not CS Sachin Agarwal
covering observations/ comments/ weaknesses already pointed out Partner
by the other Auditors. FCS No. : 5774
C.P No. : 5910
4. Where ever required, we have obtained the Management representation
about the compliance of laws, rules and regulation and happening of Place: New Delhi
events etc. Date: 19.07.2019

94
 Annexure-IV to the Board’s Report

CORPORATE GOVERNANCE REPORT 2018-19

(a) Company's Philosophy
The philosophy of the Company in relation to Corporate Governance is to ensure transparency, disclosures and reporting that conforms fully to laws,
regulations and guidelines including DPE guidelines, and to promote ethical conduct throughout the Organization, with the primary objective of enhancing
shareholders value, while being a responsible corporate citizen. The Company is committed to conforming to the highest standards of Corporate Governance
in the Country. It recognizes that the Board is accountable to all shareholders and that each member of the Board owes his/her first duty for protecting and
furthering the interest of the Company.
(b) Board of Directors
As on 31st March, 2019, the Board of Directors comprised of a full time Chairman, 5 Whole Time Directors (i.e. Executive Directors) and 10 Non-Executive
Directors (consisting of 2 Government Nominee Directors and 8 Independent Directors). During the year, 8 Board meetings were held on 27.04.2018,
30.05.2018, 03.08.2018, 20.09.2018, 02.11.2018, 21.12.2018, 07.02.2019 and 27.03.2019.
The names of Director(s), their attendance at the Board meeting(s) held during 2018-19 as also at the last Annual General Meeting and number of other
directorships held by each of them, as disclosed, are as follows:
Name of the Director Category of Directorship No. of Board Attend- No. of other No. of Board
Meetings ance at Directorships Committee(s) as
attended last AGM held as on Chairman/Member
during 2018-19 31.03.2019* as on 31.03.2019**
1. Shri P.K. Singh Executive Chairman 2 - - -
(upto 30.06.2018)
2. Shri Anil Kumar Chaudhary$ Executive Chairman 8 Yes - -
(from 22.09.2018)
3. Prof. Ashok Gupta Independent Director 8 Yes - M-1
4. CA Parmod Bindal Independent Director 8 Yes - C-1
5. Mrs. Anshu Vaish Independent Director 7 Yes - M-1
6. Dr. G. Vishwakarma Executive Director 8 Yes 3 -
7. Shri Raman Executive Director 2 - - -
(upto 31.07.2018)
8. Shri Saraswati Prasad$ Non-Executive Director 8 Yes 4 -
(Govt. Nominee)
9. Dr. Samar Singh Independent Director 7 Yes - C-1
M-1
10. Shri Nilanjan Sanyal Independent Director 8 Yes - M-1
11. Ms. Soma Mondal Executive Director 8 Yes - -
12. CA K.S. Chauhan Independent Director 8 Yes - M-1
13. Prof. N.K. Taneja Independent Director 8 Yes - -
14. Shri Atul Srivastava Executive Director 8 Yes - M-1
15. Shri Puneet Kansal Non-Executive Director 6 - - -
(from 07.05.2018) (Govt. Nominee)
16. Shri Harinand Rai Executive Director 6 Yes 2 M-1
(from 01.08.2018)
17. Shri K. K. Gupta Independent Director 2 - 1 C-1
(from 21.12.2018)
18. Shri Vivek Gupta Executive Director 1 - 1 M-1
(from 27.03.2019)
* Includes Directorship in Private companies.
** Only Audit Committee and Stakeholders' Relationship Committee are considered for this purpose.
M = Member, C = Chairman
$ Shri Anil Kumar Chaudhary prior to being appointed as Chairman, was Director (Finance) of the Company. Shri Saraswati Prasad was holding Additional
Charge of Chairman from 01.07.2018 to 21.09.2018.
None of the above Directors, other than Shri Saraswati Prasad, was on the Board of listed entity during 2018-19 except SAIL. Shri Saraswati Prasad is on
the Board of NMDC Limited and KIOCL Limited also.
(c) Audit Committee:
(i) Terms of reference:
The primary function of the Audit Committee is to assist the Board of Directors in fulfilling its oversight responsibilities by reviewing the Financial Reports; the
Company's systems of internal financial controls, accounting and legal compliance that Management and the Board have established; and the Company's
auditing, accounting and financial reporting process generally.

95
 The Audit Committee reviews reports of the Internal Auditors, meets exemptions to Government Companies from certain provisions of the
Statutory Auditors, discusses their findings, suggestions and other Companies Act, 2013 which, inter-alia, provides that Sub Sections (2),
related matters and reviews Accounting Policies followed by the (3) & (4) of Section 178 regarding appointment, performance evaluation
Company. The Audit Committee reviews with the Management, the and remuneration shall not apply to Directors of Government Companies.
Quarterly and Annual Financial Statements before their submission to The appointment of Functional Directors as well as Part Time Non-
the Board. Official Directors (Independent Directors) on the Board of SAIL is made
The minutes of the Audit Committee meetings are circulated to the Board, based on nomination/appointment by Government of India (GOI). Further,
discussed, and taken note of. terms & conditions of appointment as well as tenure of all Directors are
(ii) Composition: also decided by GOI and there is a well laid down procedure for evaluation
of Functional Directors and CMD by the Administrative Ministry.
The Audit Committee of the Board was initially formed in 1998 and has
been reconstituted from time to time. As on 31st March, 2019, the (ii) The details of remuneration to Whole Time Directors are given below:
Audit Committee comprised of CA. Parmod Bindal (Chairman), Prof. (`)
Ashok Gupta, Mrs. Anshu Vaish, Dr. Samar Singh, Shri Nilanjan Sanyal Name of Salary* Perquisites, Total
and Director (Technical). During the last year, the Committee met 9 the Director etc.
times and attendance of the Members at the meetings is given below: Shri P.K. Singh 12,70,312 1,41,662 14,11,974
Name of the Director Status No. of meetings (upto 30.06.2018)
attended Shri Anil Kumar 39,38,243 4,24,454 43,62,697
CA Parmod Bindal, Chairman 9 Chaudhary
Independent Director Dr. G. Vishwakarma 35,73,914 3,70,176 39,44,090
Prof. Ashok Gupta, Member 9 Shri Raman 21,02,241 1,62,775 22,65,016
Independent Director (upto 31.07.2018)
Mrs. Anshu Vaish, Member 8 Ms. Soma Mondal 35,75,492 4,36,064 40,11,556
Independent Director
Shri Atul Srivastava 44,29,043 - 44,29,043
Shri Nilanjan Sanyal, Member 9
Independent Director Shri Harinand Rai 24,03,202 2,10,498 26,13,700
(from 01.08.2018)
Dr. Samar Singh, Member 9
Independent Director Shri Vivek Gupta 3,21,410 - 3,21,410
(from 27.03.2019)
Shri Raman, Member 1
Director (Technical) Total 2,16,13,857 17,45,629 2,33,59,486
(upto 31.07.2018)
*Salary includes Pension
Shri Harinand Rai, Member 7
Director (Technical) (iii) The Non-Executive Directors (other than Government Nominee Directors)
(from 01.08.2018) are paid only sitting fee of `20,000/- for each Board/Board Sub-
Committee/Independent Directors Meeting attended by them.
(d) Nomination & Remuneration Committee (iv) The salary of the Whole Time Directors is governed by pay scales and
(i) SAIL, being a Government Company, the nomination and fixation of Rules issued by the Department of Public Enterprises. No variable
terms and conditions for appointment of its Director, is made by incentive is being paid to the Directors except Performance Related
Government of India. However, the Company has constituted a Pay(PRP), paid to them on annual basis as per DPE Guidelines. No
Nomination & Remuneration Committee (NRC) to, inter-alia, look into Bonuses and Stock Options were paid during the financial year
various HR issues, matters prescribed under the Companies Act, 2013 2018-19.
and SEBI Regulations, finalization of Performance Related Pay (PRP) (v) Terms & Conditions
for the executives of the Company in terms of Department of Public The Whole Time Directors are nominated by Government of India for
Enterprises Guidelines on Corporate Governance for Central Public appointment as Director for a period of five years or till the age of
Sector Enterprises, etc. superannuation or until further orders, whichever is the earliest. They
As on 31st March, 2019, the Nomination & Remuneration Committee are initially appointed by the Board of Directors as Additional Directors
comprised of Mrs. Anshu Vaish (Chairperson), Shri Anil Kumar and, thereafter, by the Shareholders in the Annual General Meeting in
Chaudhary, Chairman, SAIL, Prof. Ashok Gupta, Independent Director, terms of the provisions of the Companies Act, 1956/2013.
Shri Nilanjan Sanyal, Independent Director, Prof. N.K. Taneja, Independent The appointment may, however, be terminated by either side on three
Director, and Joint Secretary, Ministry of Steel (Government Nominee months' notice or on payment of three months' salary in lieu thereof.
Director) as Members.
(e) Stakeholders' Relationship Committee
As per Section 178(2) of the Companies, 2013, the Nomination and
Remuneration Committee (NRC) shall identify persons who are qualified (i) A Stakeholders' Relationship Committee under the Chairmanship of Dr.
to become directors and who may be appointed in senior management Samar Singh with CA K.S. Chauhan, Independent Director and two Whole
in accordance with the criteria laid down, recommend to the Board Time Directors, i.e. Director (Finance) and Director (Personnel), as
their appointment and removal and shall specify the manner for effective Members, is functioning to consider and resolve the grievances of the
evaluation of performance of the Board, its committees and individual security holders of the Company including complaints related to transfer
directors. The evaluation is to be carried out either by the Board, NRC of shares, non-receipt of balance sheet, non-receipt of dividend, etc.
or by an independent external agency and NRC shall review the (ii) Name of Compliance Officer: Shri M.C. Jain, ED(F&A) and Company
implementation and compliance of the evaluation system. Further, Secretary.
Regulation 17(10) & 25(4) of SEBI (LODR) 2015 and the Code for (iii) There was no complaint pending for redressal as on 31st March, 2018.
Independent Directors pursuant to Section 149(8) of the Companies Number of shareholders' complaints received during the year from 1st
Act, 2013 requires the performance evaluation of Independent Directors April, 2018 to 31st March, 2019 was 18. All the 18 complaints were
to decide their continuance or otherwise. The Ministry of Corporate resolved and no complaint was pending for redressal as on 31st March,
Affairs(MCA) has vide its Notification dated 5th June, 2015 notified 2019.

96
(f) Risk Management Committee: The Company has constituted SAIL (h) During the year, constitution of the Board Sub Committees (BSCs) was
Risk Management Committee (SRMC) and the Chief Risk Officer of the reviewed and some of the BSCs were reconstituted. At present, besides
Company is acting as the Secretary of the Committee. Chairman, Audit mandatory committees, the following BSCs have been constituted by
Committee is the Chairman of the SRMC and majority of the members the Company so that the issues are examined in detail before the same
are Directors on the Board of the Company. The Company has formulated are considered by the Board of Directors:
a Risk Management Policy for dealing with different kinds of risks which • Strategic Issues & Joint Ventures Committee- To examine and
it faces in the day to day operations. The Risk Management Policy is recommend to the Board the issues relating to formation of
comprehensive and processes faster risk updation in a dynamic Strategic Alliance(s) and Joint Ventures of the Company and
business environment. The SRMC oversees the risk management review their performance.
function in SAIL by addressing issues pertaining to policy formulation • Projects Committee- To monitor and recommend to the Board
as well as evaluation of the risk management function to assess its the matters regarding taking up of new projects, monitoring
continuing effectiveness. implementation of major capital projects vis-a-vis approved plan,
(g) Corporate Social Responsibility Committee: Corporate Social etc.
Responsibility is the Company's commitment to its stakeholders to • Operational Issues Committee- To review production
conduct business in an economically, socially and environmentally performance, sales & marketing performance, operational
sustainable manner, whereby organisations serve the interests of the performance of the mines & collieries; to review coordination
society, by taking responsibility for the impact of their activities. The amongst Mines and Plants for availability of the required quantity
Board of Directors of the Company has constituted Corporate Social and quality of raw materials for the Plants, etc.
Responsibility Committee and has also approved Corporate Social
• Health, Safety & Environment Committee- To review the policy,
Responsibility Policy of the Company. The Policy is available on the
procedures and systems on Health, Safety and Environmental
website of the Company-www.sail.co.in. As on 31st March, 2019, CA
matters in respect of Plants & Mines.
K.S. Chauhan, Independent Director, was Chairman of the Committee.
(i) Details of Meetings of various Board Sub Committees held during the year and Directors' attendance therein:
Board Audit Projects Strategic Nomination & Corporate Health, Safety Stake holders Operational
Sub-Committee Committee Committee Issues & Joint Remuneration Social & Environment Relationship Issues
Ventures Committee Responsibility Committee Committee Committee
Committee Committee
1. 2. 3. 4. 5. 6. 7. 8. 9.
Meetings held 9 3 2 7 2 2 1 4
Directors Attendance
Shri P.K. Singh - - - - - - - -
(upto 30th June, 2018)
Shri Saraswati Prasad - - - 1 - - - -
(Chairman from 01.07.18
to 21.09.18)
Shri Anil Kumar Chaudhary, - - - 3 - - - -
Chairman (from 22.09.2018)
Shri Anil Kumar Chaudhary, - 1 - - 1 - 1 3
Director (Finance)
(upto 21.09.2018)
Prof. Ashok Gupta 9 - - 7 2 2 - 4
CA Parmod Bindal 9 3 2 - - - - 4
Mrs. Anshu Vaish 8 - 2 7 2 2 - -
Dr. G. Vishwakarma - 3 2 - - - - -
Shri Raman* 1 1 - - - - - 2
(upto 31st July, 2018)
Dr. Samar Singh 9 - 2 - 2 - 1 -
Shri Nilanjan Sanyal 9 3 2 7 - 2 - 4
Ms. Soma Mondal - - - - - - - 4
CA K.S. Chauhan - 3 - - 2 - 1 4
Prof. N.K. Taneja - 3 2 7 - - - 4
Shri Atul Srivastava - - - - 2 2 1 -
Shri Puneet Kansal - 2 2 7 - - - 3
(from 7th May, 2018)
Shri Harinand Rai* 7 2 - - 1 2 - 2
(from 01.08. 2018)
Shri K.K. Gupta - 1 - - 1 1 - -
(from 21.12. 2018)
Shri Vivek Gupta - - - - - - - -
(from 27.03.2019)

* For part of the year, Shri Raman and Shri Harinand Rai were holding additional charge of Director (Raw Materials & Logistics).

97
(j) In addition to above, 1 meeting of Independent Directors was held during the Financial Year 2018-19.
(k) General Body Meetings:
Location and time where last three AGMs held:
Financial Year Date Time Location
2017-18 20.09.2018 10.30 a.m. NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001.
2016-17 22.09.2017 10.30 a.m. NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001.
2015-16 21.09.2016 10.30 a.m. NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001.
(i) In the last 3 years, four Special Resolutions were passed in the has been established for employees to report concerns about unethical
Annual General Meetings and none through Postal Ballot, as behaviour, actual or suspected fraud or violation of Code of Conduct. It
detailed below: also provides for adequate safeguards against the victimization of
Financial Year No. of Special Resolutions Passed employees who avail the Mechanism and allows direct access to the
Chairperson of the Audit Committee in exceptional cases. The Vigil
2015-16 1 Mechanism has been posted on the website of the Company -
2016-17 2 www.sail.co.in.
2017-18 1 (vi) The Company has complied with the mandatory requirements of the
(ii) No Special Resolution is proposed to be conducted through Postal SEBI (Listing Obligations and Disclosure Requirements) Regulations,
Ballot upto the ensuing Annual General Meeting. 2015 and the Guidelines on Corporate Governance for Central Public
Sector Enterprises issued by the Department of Public Enterprises,
(l) Disclosures: Government of India, during the Financial Year 2018-19. However, there
(i) Pecuniary Relationship: There were no transactions by the Company of was shortfall of one Independent Director for a brief period of less than
material nature with Promoters, Directors or the Management, their two months during the Financial Year 2018-19. SAIL being a Government
Subsidiaries, relatives, etc. that may have potential conflict with the Company, the Directors on its Board are appointed, based on nomination
interests of the Company at large. The Board has taken note of the by the Government of India. The matter of nominating the requisite
declaration and confirmation regarding meeting the criteria of number of Independent Directors on the Board of SAIL was taken up
independence submitted by the Independent Directors. The Non- with the Ministry of Steel, Government of India. Further, the Company
Executive Directors had no pecuniary relationships or transactions vis- has not fully adopted non-mandatory requirements of the SEBI (Listing
à-vis the Company during the year except receipt of sitting fee paid to Obligations and Disclosure Requirements) Regulations, 2015 and
Independent Directors for attending the meetings of the Board/Board amendments thereof.
Sub-Committee. None of the Non-Executive Directors held any share/ (vii) There were two woman Directors on the Board of the Company as on
convertible instrument of the Company. 31st March, 2019.
(ii) Maximum tenure of an Independent Director: SAIL being a Government (viii) Presidential Directives for revision of pay scales of Board level and
Company, the nomination and fixation of terms and conditions for below Board level executives in SAIL were issued by the Ministry of
appointment of Independent Directors is made by Government of India. Steel vide file No.7(12)/2008-SAIL(PC) dated 5th October, 2009 w.e.f.
(iii) Letter of appointment to Independent Directors: SAIL being a Government 1st January, 2007 for ten years i.e.upto 31st December, 2016. The
Company, Directors on its Board are nominated/appointed by the Company has complied with the same and also the Presidential
Government of India. During the Financial Year 2018-19, 1 Independent Directives on reservation for SC/ST/OBC. The Presidential Directives
Director was nominated by the Government of India on the Board of the for revision of pay scales of Board level and below Board level executives
Company. The letter of appointment was issued to the Independent in SAIL w.e.f. 1st January, 2017 are yet to be issued by the Ministry of
Director based on the Terms and Conditions mentioned by Government Steel.
of India while nominating/appointing the Independent Director. (ix) The Independent Directors have submitted the declaration of
(iv) Familiarization programme for Independent Directors: An induction cum independence, as required under Section 149(7) of the Companies Act,
familiarization programme for Independent Directors is organized on 2013 stating that they meet the criteria of independence as provided in
their appointment, where an overall view of the Company is presented sub-section (6) of Section 149 of the Companies Act, 2013.
to them which includes, inter-alia, details of Organization Structure, (x) Code of Conduct: The Board has laid down a Code of Conduct covering
Company's Plants & Units, Product portfolio, Financial and Operational the requirements to be complied with by all the Board Members and
Performance, Modernization and Expansion Programme, etc. The Senior Management Personnel of the Company. An affirmation of
Company also organizes visits of the Directors to various Plants/Units compliance with the Code is received from them on annual basis. The
of the Company for first- hand knowledge of the operations of the Plants/ Code of Conduct has been placed on the website of the Company -
Units. Further, the Directors are nominated to the training programmes www.sail.co.in.
organised by various institutions such as DPE, SCOPE, IOD, etc. on
issues related to Corporate Governance, etc. The details of familarisation (xi) Policy on Related Party Transactions: In terms of the Listing Agreement,
programmes imparted to Independent Directors are available on the the Board of Directors of the Company has adopted a Policy on Related
website of the Company - www.sail.co.in. Party Transactions. The Policy is placed on the website of the Company
- www.sail.co.in.
(v) The Company has adopted Whistle Blower Policy of Central Vigilance
Commission (CVC) and it has not denied access to any personnel to (xii) Policy on Material Subsidiaries: The Board of Directors of the Company
approach the Audit Committee/ Management on any issue. The Whistle has adopted a Policy for determination of Material Subsidiaries. The
Blower Policy is available on the website of the Company - Policy is placed on the website of the Company - www.sail.co.in. The
www.sail.co.in. The Company has also formulated a Vigil Mechanism Company did not have any Material Subsidiary during 2018-19.
for conducting the affairs in a fair and transparent manner by adopting (xiii) In terms of the Regulation 43A of SEBI(Listing Obligations and Disclosure
highest standards of professionalism, honesty, integrity and ethical Requirements) Regulations, 2015, the Board of Directors of the
behaviour. All employees of the Company and Directors on the Board Company has adopted Dividend Distribution Policy and the same is
of the Company are covered under this Mechanism. This Mechanism uploaded on the website of the Company-www.sail.co.in.

98
(xiv) The financial statements are signed by the Chairman and Director Corporate Affairs or any such other Statutory Authority.
(Finance) of the Company, who are CEO and CFO respectively of the (xviii) An amount of `4.91 crore was paid as total fees for all services by the
Company. Company and its subsidiaries, on a consolidated basis, to the statutory
However, in absence of appointment of a full time Director (Finance), auditors and all entities in the network firm/ network entity of which
Chairman of the Company was assigned the Additional Charge of the statutory auditors are part.
post of Director(Finance) w.e.f. 22.09.2018, for a period of 3 months (xix) Disclosure under the Sexual Harassment of Women at Workplace
i.e. upto 22.12.2018 which was extended for a period of another 3 (Prevention, Prohibition and Redressal) Act, 2013:
months i.e. till 22.03.2019. Further, Director (Projects and Business
Planning) was assigned Additional Charge of the post of The Company has set up Internal Complaints Committees in line with
Director(Finance) w.e.f. 23.03.2019 for a period of 3 months, which the requirements of the Sexual Harassment of Women at the Workplace
was extended till further orders. (Prevention, Prohibition and Redressal) Act, 2013. These Committees
have been set up to redress complaints received regarding sexual
(xv) Directors on the Board of the Company are nominated/appointed by harassment. All employees of the Company are covered under these
the Government of India. Therefore, preparation of a chart or a matrix Rules. The details of sexual harassment complaints received and
setting out the skills/ expertise/competence of the Board of Directors is disposed of during the year 2018-19 are as under:
outside the purview of the Board of SAIL.
Number of complaints filed during the financial year : 7
(xvi) During the Financial Year 2018-19, no funds have been raised through
preferential allotment or qualified institutions placement. Number of complaints disposed of during the financial year : 5

(xvii) Pursuant to Regulation 34(3) and Schedule V Para C clause 10(i) of the Number of complaints pending as on 31.03.2019 : 2
SEBI(Listing Obligations and Disclosure Requirements) Regulations, (xx) During the financial year 2018-19, no independent director has resigned
2015, M/s. Agarwal S. & Associates, Practising Company Secretaries, before their respective tenure.
has certified that none of the Directors on the Board of SAIL have been (xxi) No non-executive director has held shares/convertible instruments
debarred or disqualified from being appointed or continuing as Directors except CA Parmod Bindal who holds 5000 equity shares of M/s. Vayu
of companies by the Securities Exchange Board of India/Ministry of Agro Farm Private Limited.

(xxii) Credit Ratings obtained along with any revision thereto during the Financial Year 2018-19 are as under:
A. India Ratings ` in crore Current Rating Previous Rating
Particulars Rated 09.11.2018 Status 02.08.2017
amount
Long Term Bonds 17000 IND AA - Stable Outlook Revised IND AA - Negative Outlook
Short Term (CPs) 8000 IND A1+ Reaffirmed IND A1+
Fund-Based Working Capital based 4500 IND AA- Stable Outlook / IND A1+ Revised IND AA- Negative Outlook / IND A1+
limits*
Non-Fund-Based Working Capital limits 2000 IND A1+ (Reaffirmed) Reaffirmed IND A1+
Non-Fund-Based limits 7000 IND AA- Stable Outlook Revised IND AA- Negative Outlook
Bank Loan 2000 IND AA- Stable Outlook Revised IND AA- Negative Outlook
Public Deposits 1000 IND tAA Stable Outook Revised IND tAA Negative Outook
* Bank sanctioned limits INR 7000 crore as on date.
B. CARE Ratings ` in crore Current Rating Previous Rating
Particulars Rated 27.09.2018 Status 27.09.2017
amount
Long Term Bonds Programme 19000 CARE AA - Outlook Stable Revised CARE AA - Outlook Negative
Long Term Public Deposits 1000 CARE AA - Outlook Stable Revised CARE AA - Outlook Negative
Short Term CP / ICD Programme 8000 CARE A1+ Reaffirmed CARE A1+ *
06.03.2019
Long Term Fund Based bank facilities 30000 CARE AA - Outlook Stable Assigned N.A.
(Term Loans)
* Letter dated 24.11.2017
C. Brickworks Ratings ` in crore Current Rating Previous Rating
Particulars Rated 12.09.2018 Status 31.08.2017
amount
Long Term Bonds Programme 5000 BWR AA Negative Outlook Reaffirmed BWR AA Negative Outlook

99
(xxiii) Risk w.r.t. Commodities: Pursuance to Circular No. SEBI/HO/CFD/ releases also on its website.
CMD1/ CIR/ P/ 2018/0000000141 dated 15th November, 2018, SAIL (n) General Shareholders Information:
does not perceive any risk with respect to commodities, as it has taken (i) Annual General Meeting is scheduled to be held on 30th August, 2019
adequate steps to ensure uninterrupted supply of major materials. SAIL at NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001.
has diversified sourcing of coal and is procuring coal through Long
(ii) Financial Year: 1st April, 2018 - 31st March, 2019.
Term Agreements from different geographical locations from five
countries, i.e., Australia, USA, Canada, Indonesia and Mozambique. (iii) Date of Book Closure: 24th August, 2019 to 30th August, 2019, both
For iron ore, SAIL has its own captive iron ore mines which meet its days inclusive.
requirement. Similarly, for refractories and ferro-alloys, SAIL has its (iv) The Shares of the Company are listed at the following stock exchanges:
own captive Plants and SAIL is procuring limestone under Long Term Bombay Stock Exchange Ltd.,
Agreement. Phiroze Jeejeebhoy Towers,
(m) Means of Communication: Dalal Street, Fort Mumbai-400001
Quarterly results have been published in prominent daily newspapers (Stock Code No.500113)
as per the requirement, on the following dates: The National Stock Exchange of India Limited,
Quarter 30.06.2018 30.09.2018 31.12.2018 31.03.2019 Exchange Plaza, Plot No. C/1, G Block, Bandra Kurla Complex,
Ending Bandra (E) Mumbai- 400051
Date of 04.08.2018 03.11.2018 08.02.2019 31.05.2019 (Code: SAIL)
Publication The GDRs issued by the Company in 1996 are listed at the London
Name of the Mint (E) Financial Mint (E) Business Stock Exchange, 10 Paternoster Square, London EC4M 7LS, UK.
Newspapers Hindustan(H) Express(E) Hindustan(H) Line(E) The Annual Listing fee for 2018-19 has been paid to each of the Stock
E-English Jansatta(H) Amar Ujala (H) Exchange(s).
H-Hindi
(v) The monthly high and low quotes of the Company's shares during each
The Quarterly/Annual results are also made available at the website of month in the Financial Year 2018-19 at the Bombay Stock Exchange
the Company- www.sail.co.in. The Company displays official news (BSE) and National Stock Exchange (NSE) are indicated below:

SENSEX SAIL at BSE (`) NIFTY SAIL at NIFTY (`)

MONTH & YEAR
HIGH LOW HIGH LOW HIGH LOW HIGH LOW
APRIL' 18 35,213.30 32,972.56 81.30 70.70 10759.00 10,111.30 81.30 70.55
MAY'18 35,993.53 34,302.89 80.00 68.15 10929.20 10,417.80 80.00 68.15
JUNE' 18 35,877.41 34,784.68 91.10 71.15 10893.25 10,550.90 91.10 71.05
JULY' 18 37,644.59 35,106.57 83.55 69.85 11366.00 10,604.65 83.55 69.85
AUGUST' 18 38,989.65 37,128.99 82.00 73.70 11760.20 11,234.95 82.00 73.65
SEPT.MBER '18 38,934.35 35,985.63 81.20 67.70 11751.80 10850.30 81.25 67.80
OCTOBER' 18 36,616.64 33,291.58 71.30 61.75 11035.65 10004.55 71.35 61.80
NOVEMBER '18 36,389.22 34,303.38 70.95 54.40 10922.45 10341.90 71.10 54.45
DECEMBER' 18 36,554.99 34,426.29 57.35 49.05 10985.15 10333.85 57.30 49.00
JANUARY' 19 36,701.03 35,375.51 56.90 45.60 10987.45 10583.65 56.80 45.55
FEBRUARY'19 37,172.18 35,287.16 50.40 44.10 11118.10 10585.65 50.40 44.00
MARCH' 19 38,748.54 35,926.94 56.60 49.00 11630.35 10817.00 56.60 48.90

(vi) Registrar and Share Transfer Agent (viii) Distribution of Shareholdings as on 31st March, 2019:
M/s. MCS Share Transfer Agents Limited, Shareholding Shareholders Amount
F-65, 1st Floor, Okhla Industrial Area Number % of Total In ` % of Total
Phase-I, New Delhi-110020
Phone No.011-41406149 (1) (2) (3) (4) (5)
Upto 500 311310 86.51 400925390 0.97
(vii) Share Transfer System:
501 - 1000 24308 6.75 198183030 0.48
The equity shares of the Company are mandatorily traded in the
dematerialized form. The Share Transfer Committee of the Board meets 1001 - 2000 12337 3.43 189451050 0.47
at regular intervals, to expedite the process of transfer of shares well 2001 - 3000 4008 1.11 103456860 0.25
within the time limit prescribed in this respect under the Listing
3001 - 4000 1854 0.51 66993030 0.16
Agreement.
4001 - 5000 1615 0.45 77140450 0.19
5001 - 10000 2394 0.67 178992930 0.43
10001 - 50000 1603 0.45 332149760 0.80
50001 100000 165 0.05 119745010 0.29
Above 100000 259 0.07 39638215380 95.96
Total 359853 100.00 41305252890 100.00

100
(ix) Shareholding pattern as on 31st March, 2019: (xi) The Company’s Plants/Units/Subsidiaries are located at:
Category No. of %age of STEEL PLANTS
Shares held Shareholding • Bhilai Steel Plant, Bhilai-490001, Chhattisgarh
• Durgapur Steel Plant, Durgapur-713203, West Bengal
A. Promoters' holding
• Rourkela Steel Plant, Rourkela-769011, Odisha
1 Promoters • Bokaro Steel Plant, Bokaro Steel City-827001, Jharkhand

- Indian Promoters v.i.z., 3097767449 75.00 • IISCO Steel Plant, Burnpur-713325, West Bengal
the Govt of India • Alloy Steels Plant, Durgapur-713208, West Bengal
- Foreign Promoters - - • Salem Steel Plant, Salem-636013, Tamil Nadu

Persons acting in Concert - - • Visvesvaraya Iron & Steel Plant, Bhadravati-577031, Karnataka
• Chandrapur Ferro Alloy Plant, Chandrapur, Maharashtra
Sub-Total 3097767449 75.00
UNITS
B Non-Promoters Holding
• Central Coal Supply Organisation, Dhanbad-828127, Jharkhand
3 Institutional Investors
• Central Marketing Organisation, Ispat Bhawan, 40, Jawahar Lal Nehru
a Mutual Funds and UTI 125978984 3.05 Road, Kolkata-700 071, West Bengal
b Banks & Financial Institutions 75751320 1.83 • Centre for Engineering & Technology, Ranchi-834002, Jharkhand

c Insurance Companies 413794834 10.02 • Environment Management Division, SAIL House, 3rd Floor, 50,
Jawaharlal Nehru Road, Kolkata-700071, West Bengal.
d Foreign Institutional Investors (FIIs) 169385488 4.10
• Growth Division, SAIL House, 3rd Floor, 50, Jawaharlal Nehru Road,
Sub-Total 784910626 19.00 Kolkata-700071, West Bengal.
4 Others • Management Training Institute, Ranchi-834002, Jharkhand

a Private Corporate Bodies 60672027 1.47 • Raw Materials Division, 10, Camac Street, Industry House, Kolkata-
700017, West Bengal
b Indian Public 165196124 4.00
• Research & Development Centre for Iron & Steel, Ranchi-834002,
c NRIs/OCBs 19900901 0.48 Jharkhand
d GDR 116435 0.00 • SAIL Consultancy Division, 16-20 Floor, SCOPE Minar, North Tower,
Laxmi Nagar District Centre, Delhi-110092
e Any other -IEPF 1961727 0.05
• SAIL Safety Organisation, Ranchi-834002, Jharkhand
Sub-Total 247847214 6.00
• SAIL Refractory Unit, Bokaro-827001, Jharkhand
GRAND TOTAL 4,13,05,25,289 100.00 SUBSIDIARIES
• IISCO-Ujjain Pipe & Foundry Company Limited, Kolkata (under
(x) Status of dematerialization as on 31.03.2019: liquidation)
Particulars No. of Shares % of No. of • SAIL Refractory Company Limited, Salem-636013, Tamilnadu
Capital Accounts
• Chhattisgarh Mega Steel Limited, Bhilai, Chhattisgarh
NSDL 4048765152 98.02 213833
• SAIL Jagdishpur Power Plant Limited, New Delhi-110003(under process
CDSL 77404740 1.87 122812 of Striking Off)
• SAIL Sindri Projects Limited, Chasnala-828135, Jharkhand(under
Total Dematerialised 4126169892 99.89 336645
process of Striking Off)
Physical 4355397 0.11 23208 (xii) Address for correspondence from shareholders for queries/
Total 4130525289 100.00 359853 complaints, if any:
M/s. MCS Share Transfer Agents Limited,
Government of India's shares are held in Demat form. F-65, 1st Floor, Okhla Industrial Area, Phase-I,
New Delhi-110020
Phone No.91-11-41406149,
Fax No. 91-11-41709881
E-mail:[email protected]

For and on behalf of the Board of Directors

Sd/-
(Anil Kumar Chaudhary)
Chairman
Place: New Delhi
Dated: 31st July, 2019

101
Auditors' Certificate on Compliance of Conditions of Corporate Governance

To
The Members of
Steel Authority of India Limited
We have examined the compliance of the conditions of Corporate Governance by Steel Authority of India Limited (CIN:L27109DL1973GOI006454) ("the Company")
for the year ended 31st March, 2019, as stipulated in regulations 17 to 27, clauses (b) to (i) of Sub-regulation (2) of Regulation 46 and paragraphs C, D and E of
Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the Regulation") and in the Guidelines
on Corporate Governance for Central Public Sector Enterprises issued by the Department of Public Enterprises, Government of India, to the extent applicable during
the year.
The compliance of the conditions of Corporate Governance is the responsibility of the Management. Our examination was carried out in accordance with the
Guidance Note on Certification of Corporate Governance issued by the Institute of Chartered Accountants of India and was limited to a review of the procedures and
implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression
of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, subject to the following:
The Company does not have any CFO from 23rd March, 2019 till the date of signing of this Report.
The Company has not complied with the requirements of minimum number of independent directors in the composition of Board of Directors during the period
from 7th May, 2018 to 30th June, 2018 for the year ended 31st March, 2019
We certify that the Company has complied with other conditions of Corporate Governance.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management
has conducted the affairs of the Company.

For Singhi & Co. For Chatterjee & Co For V.K. Dhingra & Co. For A.K. Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FRN: 302049E FRN: 302114E FRN:000250N FRN:321012E

Sd/- Sd/- Sd/- Sd/-

(Shrenik Mehta) (Bedanta Bhattacharya) (Vipul Girotra) (A.K. Sabat)
Partner Partner Partner Partner
(M. No.063769) (M. No.060855) (M.No.084312) (M.No.030310)

Place : New Delhi

Date : 30th May, 2019

102
 Business Responsibility Report

Section A: General Information about the Company 5. List of activities in which expenditure in 4 above has been incurred:
1. Corporate Identity Number (CIN): L27109 DL 1973 GOI 006454 A) Promotion of Healthcare including Drinking Water facilities and Sanitation
2. Name of the Company: Steel Authority of India Limited B) Promotion of Education, Income Generation & Skill/Vocational Training
3. Registered Address: Ispat Bhawan, Lodhi Road, New Delhi - 110003 C) Empowerment of Women, Care for Sr. Citizens and Differently-abled persons
4. Website: www.sail.co.in D) Environmental Sustainability
5. Email id: [email protected] E) Promotion of Art & Culture
6. Financial Year reported: 2018-19 F) Promotion of Sports
7. Sector(s) that the Company is engaged in (industrial activity code-wise): G) Rural Development: Infrastructure Development
Manufacture of Steel and Steel products Section C: Other Details
National Industrial Classification (NIC) Code: 330 1. Does the Company have any Subsidiary Company / Companies?
8. List three key products / services that the Company manufactures / provides (as in A. SAIL Refractory Company Limited.
balance sheet):
B. SAIL Jagdishpur Power Plant Limited. (Under Process of Striking Off)
(i) Manufacture of Hot Rolled and Cold Rolled steel products
C. SAIL Sindri Projects Limited. (Under Process of Striking Off)
(ii) Manufacture of Rails
D. Chhattisgarh Mega Steel Limited.
(iii) Manufacture of Reinforcement Bar, Wire Rods, Structurals, etc.
E. IISCO Ujjain Pipe & Foundry Co. Limited(Under Liquidation)
9. Total number of locations where business activity is undertaken by the Company:
2 Do the Subsidiary Company / Companies participate in the BR initiative of the
(i) International locations: Nil parent Company? If yes, then indicate the number of such subsidiary
(ii) SAIL operates and owns five Integrated Steel Plants at Bhilai, Durgapur, Bokaro, company(s).
Rourkela and Burnpur & three Special Steel Plants at Salem, Durgapur and Business Responsibility initiatives of the parent company are applicable on the
Bhadravati. Another Unit, Chandrapur Ferro-Alloy Plant (CFP) produces Ferro- subsidiary companies.
alloys. It also has SAIL Refractory Unit (SRU) at Bokaro, with four refractory
manufacturing Units in Jharkhand and Chhattishgarh. 3 Do any other entity / entities (e.g. suppliers, distributors etc.) that the company
does business with; participate in the BR initiatives of the Company? If yes,
Apart from these, the other Units of SAIL are as follows: then indicate the percentage of such entity / entities?[Less than 30%, 30-60%,
• SAIL Growth Works at Kulti, West Bengal; More than 60%]
• Raw Materials Division (RMD)- Iron Ore Mines at Kiriburu, No
Meghahatuburu, Gua, Manoharpur (Chiria) in Jharkhand, Bolani, Kalta,
Barsua(including Taldih), in Odisha; Section D: BR Information
• BSP Mines(Iron Ore) at Rajhara Group, Dalli Group, Rowghat in 1. Details of Director / Directors responsible for BR:
Chhattisgarh; a) Details of the Director / Directors responsible for BR policy/policies:
• RMD flux mines at Kuteshwar in MP; Bhawanathpur, Tulsidamar in • DIN Number 07957068
Jharkhand;
• Name: Shri Atul Srivastava
• BSP Flux Mines at Nandini, Hirri, Baraduar in Chhattisgarh;
• Designation: Director (Personnel)
• VISP Flux Mines at Bhadigund, Kenchapuda in Karnataka;
• Details of the BR head
• Collieries Division(Coal Mines) at Chasnalla, Jitpur, Tasra, Sitanala in
Jharkhand and Ramnagore in West Bengal; Sl.No Particulars Details
1 DIN Number (if applicable) NA
• Central Marketing Organisation, HQ at Kolkata;
2 Name M.B. Balakrishnan
• Central Coal Supply Organisation, Dhanbad;
3 Designation Company Secretary
• SAIL Consultancy Division at Delhi; 4 Telephone number 011-24368105
• R & D Center for Iron & Steel, SAIL Safety Organisation, Centre for 5 e-mail id [email protected]
Engineering & Technology and Management Training Institute at Ranchi;
2. Principal-wise (as per NVGs) BR Policy/Policies (Reply in Y/N)
• Environment Management Division and Growth Division at Kolkata.
The National Voluntary Guidelines on Social, Environmental and Economic
• Central Power Training Institute at Rourkela;
Responsibilities of Business (NVGs) released by the Ministry of Corporate Affairs
• Transport & Shipping at Kolkata; has adopted nine areas of Business Responsibility. These briefly are as under:
SAIL has a pan India distribution network of 37 Branch Sales Offices (BSOs), P1 - Businesses should conduct and govern themselves with Ethics, Transparency
10 active Customer Contact Offices, 25 Departmental Warehouses and 20 and Accountability.
functional Consignment Agency yards.
P2 - Businesses should provide goods and services that are safe and contribute to
10. Markets served by the Company - Local / State / National / International: National sustainability throughout their life cycle.
& International
P3 - Businesses should promote the well-being of all employees.
Section B: Financial Details of the Company P4 - Businesses should respect the interests of, and be responsive towards all
1. Paid up capital (INR) : ` 4,130.53 crore stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
2. Total turnover (INR) : ` 66,267.30 crore P5 - Businesses should respect and promote human rights.
3. Total Profit after taxes (INR) : ` 2,178.82 crore P6 - Businesses should respect, protect, and make efforts to restore the environment.
4. Total spending on CSR as% of Profit after Tax(%): P7 - Businesses, when engaged in influencing public and regulatory policy, should do
so in a responsible manner.
The Company incurred losses during the Financial Years 2015-16 to 2017-18. As
such, it was not required to incur expenditure on CSR activities during Financial P8 - Businesses should support inclusive growth and equitable development.
Year 2018-19. However, as a responsible Corporate Citizen, the Company fulfilling P9 - Businesses should engage with and provide value to their customers and
its obligations towards CSR initiatives, spent ` 31.18 crore during 2018-19 on consumers in a responsible manner
CSR activities.

103
 Engagement & CSR

Customer Relations
Business Ethics

Responsibility

Human Rights
Well Being of

Public Policy
Environment
Stakeholder
Employees
Sl.

Product
Questions

CSR
No.

P1 P2 P3 P4 P5 P6 P7 P8 P9
1 Do you have a policy / policies for...... Y Y Y Y Y Y N Y N
The Company has This is included in
Quality and Company's Code of
Environment Conduct , HR policies
policies which and various other HR
ensure production practices
of safe and
sustainable
products.
2 Has the policy been formulated in consultation with the relevant Y – Y Y – Y – Y –
stakeholders?
3 Does the policy conform to any national / international Y – Y N – Y – Y –
standards?
4 Has the policy been approved by the Board? If yes, has it been Y – Y Y – Y – Y –
signed by MD/Owner/CEO/appropriate Board Directors?
5 Does the company have a specified Committee of the Board/ Y – Y Y – Y – Y –
Director/ Official to oversee the implementation of the policy?

6 Indicate the link for the policy to be viewed online? – – – @ – * – @ –

7 Has the policy been formally communicated to all relevant Y – Y Y – Y – Y –
internal and external stakeholders?
8 Does the Company have in-house structure to implement the Y – Y Y – Y – Y –
policy/policies?
9 Does the Company have a grievance redressal mechanism Y – Y N – N – N –
related to the policy/policies to address stakeholders'
grievances related to the policy/policies?
10 Has the Company carried out independent audit / evaluation of N – N N – Y – Y –
the working of this policy by an internal or external agency?

2a. if answer to Sl. No. 1 against any principle , is 'No', please explain why: (Tick up to 2 options)
Sl. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No.
1 The Company has not understood the – – – – – – – – –
Principles
2 The Company is not at a stage where it finds – – – – – – – – –
itself in a position to formulate and implement
the policies on specified Principles
3 The Company does not have financial or – – – – – – – – –
manpower resources available for the task
4 It is planned to be done within next six months – – – – – – – – –
5 It is planned to be done within next one year – – – – – – – – –
6 Any other reason (Please specify) – – – – – – The Company has leadership The Company has systems and
position in the steel sector and procedures to assess customer
has a record of pioneering needs and addressing them. The
achievements which has Customer Satisfaction Index is
benefitted Steel Industry of the calculated based on the feedback
country at large by having from customers on a regular
dialogue with MoS, GoI. basis and system for customer
Therefore need for formal complaint redressal is also in
policy has not been felt. vogue.

* - http://sail.co.in/pdf/corporateenvironmentalpolicy.pdf
@ - http:// sail.co.in/pdf/csrpolicy.pdf

104
• The Company is not engaged in a business influencing public and regulatory helps to conserve natural resources and energy sources without sacrificing
policy. desired safety of structure.
3. Governance related to BR: iii) IS 2062 E250 BR MB250 & NPB250 Structural sections were developed for
• Indicate the frequency with which the Board of Directors, Committee increasing efficiency and safety of the structure by providing optimum sectional
of the Board or CEO assess the BR performance of the Company. Within profile for a given strength and intended application. The aim is to reduce
3 months, 3-6 months, Annually, More than 1 year. overall weight of the structure by providing lighter and efficient section. This
helps to conserve natural resources and energy sources without sacrificing
Annually. desired safety of structure.
• Does the Company publish a BR or a Sustainability Report? What is 2. For each such product, provide the following details in respect of resource use
the hyperlink for viewing this report? How frequently it is published? (energy, water, raw material, etc.) per unit of product (optional):
Yes, the Company publishes printed versions of its Sustainability Report. i) Reduction during sourcing / production / distribution achieved since the
An electronic version of the report is uploaded on the Company's website previous year throughout the value chain
in the intervening year as a web update. The hyperlink for viewing the
Sustainability report of the Company is http://www.sail.co.in/ Consumption per unit of Current Previous
production in SAIL Year year
Section E : Principle-wise Performance
Specific Water conservation (m3/TCS) 3.44 3.62
Principle 1: Business should conduct and govern themselves with Ethics, Transparency
and Accountability Particulate Matter Emission Load (Kg/TCS) 0.70 0.74
1. Does the policy relating to ethics, bribery and corruption cover only the Company?
Does it extend to the group / joint ventures / suppliers / contractors / NGOs / Coke Rate (kg/THM) 453 456
Others?
ii) Reduction during usage by consumers (energy, water) has been achieved
No, the policies implemented by SAIL, in these regards cover employees of the since the previous year?
Company as well as suppliers / contractors / bidders, etc.
The information is not available.
As a responsible corporate citizen, SAIL not only seeks to conduct its business in
the most ethical manner, it also motivates and encourages its employees to maintain 3. Does the Company have procedures in place of sustainable sourcing (including
the same ethical standards and carry forward the influence among the surrounding transportation)? If yes, what percentage of your inputs was sourced sustainably?
communities. Also, provide details thereof, in about 50 words or so.
The Company has put in place Conduct, Discipline and Appeal (CDA) Rules which In addition to regular supplies from captive mines of SAIL, certain key input materials
prescribe the code of conduct as applicable mostly to the executives of the Company like coking coal, fluxes (limestone, dolomite), etc. are sourced either through
whereas the non-executive workmen are covered under the code of conduct / competitive buying or long term agreements with established suppliers. Environment
misconduct as mentioned in the Standing Orders (tripartite agreement between Management System (EMS) is in place with ISO-14000 certification of Plants and
Union and Government representatives) for respective Plants / Units of SAIL. In Units. There are continuous efforts to minimize impact of carbon footprint.
July 2007, the Company implemented Integrity Pact for all contracts / procurements Transportation of all raw materials from mines and ports to Plants is carried mainly
valuing `100 crores and above. Subsequently, to cover more contracts / through rail. Well laid out systems and procedures of competitive buying reinforce
procurements, threshold value has been reduced to `20 crores and all tenders sustainable sourcing of Company's requirement.
related to handling contracts in CMO departmental warehouses, irrespective of 4. Has the Company taken any steps to procure goods and services from local and
threshold value, are also covered under Integrity Pact. Guidelines on banning of small producers, including communities surrounding their place of work? If
business dealings with bidders / contractors / agencies dealing with SAIL have yes, what steps have been taken to improve the capacity and capability of local
been implemented in the Company and made part of the Integrity Pact wherein it and small vendors?
has been envisaged that appropriate action shall be taken against the signatories of In line with extant policy of Government of India, certain categories of goods &
Integrity Pact, if they are found involved in unethical practices including corruption services are procured from Small & Medium Enterprises (SMEs). Thrust is given to
and bribery. local procurement as per "Make in India" Policy of Government of India. Additionally,
To propagate ethical behaviour in the society at large, Ethics Clubs were formed in major Plants have local level Policy which enables procurement of goods & services
the schools of SAIL's Bhilai Steel Plant in 2011. Encompassing the core values of from local and small producers including communities like Mahila Samiti / Samaj,
Honesty, Integrity, Responsibility, Compassion, Unity and Patriotism, etc., value Self Help Groups(SHGs), etc. in the vicinity of Plant locations. Vendor Development
education through Ethics Clubs is as an extra-curricular activity. Schools of other Programs are organized periodically by the SAIL Plants which help in capacity and
SAIL townships at Rourkela, Bokaro, Burnpur, Durgapur, Salem and Bhadravati capability building of local and small vendors. Further, Plants/Units are buying
soon joined the movement and today, Ethics Clubs members in SAIL run into many materials through GeM Portal, where about 30% of suppliers are from MSEs.
thousands. Membership to the club is voluntary for students in the age group of 11 5. Does the Company have a mechanism to recycle products and waste? If yes,
to 16 years. Members of the club are designated as Young Champions of Ethics. what is the percentage of recycling of products and waste? (Separately as <5%,
SAIL believes that ethical values imbibed in the Young Champions of Ethics at an 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
early age will lead to ethically sustainable growth in the years to come.
SAIL Plants and Units have been striving to enhance the utilization of different solid
2. How many stakeholder complaints have been received in the past financial wastes like slag, flue dust, waste refractory bricks, etc. based on the principle of
year and what percentage was satisfactorily resolved by the management? 4Rs (reduce, recover, recycle and reuse). The BF slag, contributing major portion
A total of 842 complaints from various sources including those referred by Central of total solid wastes as generated, is processed through slag granulation plants for
Vigilance Commission and Ministry of Steel were received in SAIL Vigilance during its further use as input material to cement industry. On the other hand, BOF slag is
2018-19. The complaints were examined vis-à-vis extant Systems and Procedures, utilised through sinter making to a limited extent and as a partial substitute of
Policies, Rules, etc. followed in the Company and actions as per Rules including limestone in blast furnace for iron making. Further, BOF slag is utilized internally for
systemic improvements were advised against the irregularities noticed in these road making and also as rail track ballasts inside Plant premises. During 2018-19,
complaints and the same were agreed to by the Management for implementation. 95.89% of BF slag and 55.94% of BOF slag were utilised.
Hence, it may be construed that almost 100% complaints were satisfactorily resolved Other wastes like mill scale and lime/dolo fines are recycled entirely through sinter
as per procedure in vogue. making and waste refractory bricks are fully utilized either through selling to external
Principle 2: Business should provide goods and services that are safe and contribute agencies or through reusing internally. Belief of reuse and recycling of wastes is
to sustainability throughout life cycle firmly embedded in the Environmental Policy of SAIL and several initiatives have
1. List up to 3 of your products or services whose design has incorporated social accordingly been adopted to maximise utilisation of solid wastes arising from various
or environmental concerns, risks and / or opportunities. operations.
i) High Strength IPE600 Structural without Micro-alloying were developed for During 2018-19, around 23% of solid wastes were re-cycled/reused out of 85.17%
conservation of micro-alloying elements like Nb, V and Ti and also the use of of solid wastes utilisation. Moreover, by-product gases like Coke Oven gas, BF gas
high strength steels will entail lower sections in the design of structures that and BOF gas are used as fuel in different processes.
will lead to the use of less amount of steel leading to the use of fewer amounts Principle 3: Business should promote the well-being of all employees
of raw materials/resources and lower energy consumption required for the 1. Please indicate the Total number of employees in SAIL.
production of the steel. This will have direct impact on environment in terms
As on 01.04.2019 total number of employees in SAIL: 72339 (Executives:11851;
of mining, lower pollution levels, etc.
Non-Executives: 60488)
ii) IS 2062E250 BR NPB200 & MB300 Structural sections were developed for
2. Please indicate the total no. of employees hired on temporary/contractual/
increasing efficiency and safety of the structure by providing optimum sectional
casual basis.
profile for a given strength and intended application. The aim is to reduce
overall weight of the structure by providing lighter and efficient section. This As on 01.04.2019, number of contract labour engaged at SAIL Plants/Units: 69121

105
3. Please indicate the Number of permanent women employees. the sports coaching. The Cadets have brought laurels proving their might in
As on 01.04.2019, permanent women employees in SAIL: 4157 (Executives: 913; national and international championships.
Non-Executives: 3244) iii) With the objective to facilitate homely environment with honour and respect,
4. Please indicate the Number of permanent employees with disabilities. 34 senior citizens have been accommodated at Siyan Sadan in 20 fully-
furnished rooms with recreational facilities. Bhilai Steel Plant is arranging
As on 01.04.2019, total no. of permanent employees with disabilities in SAIL Plants/
daily meals, regular health check-ups, cultural programs like Kavi Sammelan,
Units: 782 (Executives :132; Non-Executives: 650)
Musical Evening, Bhajan Sandhya and festival celebrations for welfare and
5. Do you have an employee association that is recognized by Management? recreation of these elderly inmates.
Recognition to trade unions having majority representation of non-executive Principle 5: Business should respect and promote human rights
employees is graded as per process at the Plant/Unit level. At apex level, National
Joint Committee for Steel Industry (NJCS), a bipartite forum consisting of 1. Does the policy of the Company on human rights cover only the Company or
representatives from five Central Trade Union viz. INTUC, AITUC, CITU, HMS & extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?
BMS and representatives from recognized union of main Plants, provides The Company does not have a stated Human Rights Policy. However, most of the
representation to all non-executive employees. Executives are represented by the aspects are covered in the Company's Code of Business Conduct and Ethics as
respective Officer Associations (OA) of their Plants/Units which are affiliated to well as in various human resource policies and practices.
Steel Executives Federation of India (SEFI), the apex body representing executives 2. How many stakeholder complaints have been received in the past financial
in SAIL. year and what percent was satisfactorily resolved by the management?
6. What percentage of your permanent employees is members of this recognized 18 number of complaints were received from the stakeholders during 2018-19 and
employee association? all the complaints were resolved during 2018-19.
Almost all employees of SAIL are members of either Trade Unions or Officers' Principle 6: Business should respect, protect, and make efforts to restore the
Associations. environment
7. Please indicate the Number of complaints relating to child labour, forced labour,
1. Does the policy of the related Principle 6 cover only the Company or extends to
Involuntary labour, Sexual harassment in the last financial year and pending as
the Group/Joint Ventures/Suppliers/Contractors/NGOs and others?
on the end of the financial year.
Policy and Strategy formulation at SAIL is a well-structured process guided by
Category No.of No. of complaints
Company's Vision and Credo. Elements of Sustainability are ingrained in SAIL's
complaints filed pending at end
vision, strategies, and policies. The basket of policies includes Quality, Environmental,
during the Financial of the
and Safety, etc. all of which encompass concepts of Sustainability. The policies on
Year 2018-19 Financial Year
Human Resource, Occupational Health and Safety, Communication, Maintenance,
Child/Forced/Involuntary Nil Nil Township, Energy Management and Social Accountability, etc. at the Plant level
Labour also promote concept of Sustainable Development.
The Corporate Environmental Policy of SAIL affirms to maintain a clean and
Sexual Harassment 7 2 sustainable environment in and around its Plants and Mines through sound
Discriminatory Employment Nil Nil environmental practices in all its activities, through adoption of cleaner and energy-
efficient technologies, restore the mined out landscapes and abandoned sites
8. Percentage of your under mentioned employees were given safety and skill ecologically. The Policy also commits to ensure regular monitoring and review of
upgradation training in the last year? environmental performance through a robust audit mechanism and a transparent
reporting system and monitor emission, discharge and ambient air quality and
Training need of each individual in the organisation is assessed. Under the
make data available in the public domain.
Performance Management System, each executive is asked to inform the
Management as to what training needs are to be given to him/her to help him/her Implementation of an Environment Management System linked to ISO 14001
perform his/her duties in a better way. standards, which is essentially a voluntary initiative, has become an effective tool
Also occupational training, safety and skill up-gradation training (technical/ for safeguarding the environment. Through adoption of this system, SAIL addresses
the concerns of the stakeholders.
managerial / functional) are imparted to all permanent employees including female
employees and differently-abled employees. During the year 2018-19, total 44,369 2. Does the company have strategies/initiatives to address global environmental
(61 % of total employees) regular employees were trained on various safety & skill issues such as climate change/global warming etc.? Y/N. If yes, please give
up-gradation related programme. SAIL is in the process of implementation of current hyper link for web page, etc.
Modernization & Expansion Programme wherein contractual workers are engaged Yes. SAIL, as a responsible corporate entity, has taken up various initiatives for
in various activities. 100 % of contractual workers are given safety awareness climate change mitigation through technology up-gradation, sourcing of good quality
training which is mandatory for issuing gate pass for entry to Plant premise. Skill of raw materials, retrofitting of new pollution control facilities and revamping of
up-gradation of contractual worker is also taken care of while on job at their work- existing pollution control systems, etc. All these efforts, with a special thrust on
place. adoption of cleaner and energy -efficient technologies, have achieved a reduction
Principle 4: Businesses should respect the interests of, and be responsive towards in specific carbon dioxide emission by around 3% during the last five years.
all stakeholders, especially those who are disadvantaged, vulnerable and SAIL intends to assess its carbon footprint and potential of sequestration of CO2
marginalized. through its existing biotic resources. A project on carbon sequestration through
1. Has the Company mapped its internal and external stakeholders? afforestation has been taken up at the site of Rourkela Steel Plant, aiming at reduction
Yes of CO2 emission as well as sequestration of generated carbon back into the system.
2. Out of the above, has the Company identified the disadvantaged, vulnerable SAIL has also adopted Sustainable Development Policy and has been publishing its
and marginalized stakeholders? Corporate Sustainability Report, as per Global Reporting Initiative (GRI) Guidelines,
since last eight years. The Report is available in the Corporate Citizenship section
There has never been any discrimination in the treatment and rights available to of the Company's website (www.sail.co.in).
stakeholders.
Company's strategies/initiatives to address global environmental issues such as
3. Are there any special initiatives taken by the Company to engage with the climate change/global warming is available on website. The hyperlink for the same
disadvantaged, vulnerable and marginalized stakeholders? If so, provide details is: https:// www.sail.co.in/ sites/ default/ files/Climate_Change.pdf.
thereof, in about 50 words or so.
3. Does the Company identify and assess potential environmental risk? Y/N.
Some of the special initiatives undertaken by the Company are :
Yes. The Company has adopted the Enterprise Risk Management (ERM) Policy and
i) In an attempt to bring the future generations of tribals to the mainstream, has also established a well-defined mechanism for identification and assessment
about 524 tribal children are being provided free Education along with boarding, of potential environmental risks.
lodging, nourishing and wholesome food, clothing, free medical treatment,
sports and cultural opportunities in a conducive atmosphere at Gyanodya 4. Does the company have any project related to Clean Development Mechanism?
Chatrawas, Bhilai & BSP School Rajhara, Birhors (a tribe near extinction) If so, provide details thereof, in about 50 words or so. Also, if yes, whether any
under Gyanjyoti Yojna at Bokaro, Saranda Suvan Chhatravas, Kiriburu, RTC environmental compliance report is filed.
Residential Public School, Manoharpur Ore Mines. SAIL had long ago identified several energy-efficient projects which were
ii) Eklavya Archery Academy set up at Kiriburu mines is providing sports platform implemented during the modernization cum expansion program for availing the
to 21 youths (09 girls & 12 boys) from neighbouring tribal belt, who are Clean Development Mechanism (CDM) benefits. Out of that, six projects as given
undergoing rigorous 'Modern Recurve Archery' coaching free of cost. RMD below were validated as Verified Emission Reduction (VER) projects under the
is providing them free schooling, hostel, food, and other facilities along with guidance of the VCS and ISO Standards:

106
 1. Introduction of Blast furnace gas firing system in Boiler No.6 of PBS (PP-1) at 7. Number of show cause/legal notices received from CPCB/SPCB which are
Bhilai Steel Plant. pending (i.e. not resolved to satisfaction) as on end of financial year.
2. Introduction of Blast furnace gas firing system in Boiler Unit B of Power Plant Two directions from the Central Pollution Control Board (CPCB) were received by
at IISCO Steel Plant. two different Plants during the Financial Year 2018-19. Time bound action plans
3. Installation of Multi-slit Burners in both the strands of Sinter Plant-I at Rourkela have been made in consultation with the respective authorities and the conditions
Steel Plant. of both the directions have mostly been complied with.
4. Heat recovery system from sinter cooler of Sinter Plant No.3 at Bhilai Steel Principle 7: Businesses, when engaged in influencing public and regulatory policy,
Plant. should do so in a responsible manner
5. Thyristorisation of Blast Furnace Nos.3 & 4 skip hoist electric supply for better 1. Is your Company a member of any trade and chambers or association? If yes,
operation efficiency and energy conservation at Bhilai Steel Plant. name only those major ones that your business deals with.
6. Installation of multi-slit burners in Sinter Plant at Bokaro Steel Plant. The Company is a Member of:
Around 1.37 Million Tonnes of CO2 equivalent carbon credits have accrued. A. Federation of Indian Chambers for Commerce and Industry (FICCI)
It's a voluntary approach. So, there is as such no mandatory requirement to file its B. Associated Chambers of Commerce and Industry of India (ASSOCHAM)
compliance. C. Centre for Organisation Development(COD)
5. Has the company undertaken any other initiatives on clean technology, energy D. All India Management Association (AIMA)
efficiency, renewable energy etc.? Y/N. If yes, please give hyper link for web
page etc. E. Consultancy Development Centre (CDC)
Yes. The Company has already implemented latest state-of-the-art clean technologies F. Forum of Women in Public Sector (WIPS)
vis-à-vis energy-efficient technologies during the modernization cum expansion G. Indian Institute of Metals (IIM)
program. Some of such major clean technologies are: Taller Coke Oven Batteries
H. Indian Institute of Plant Engineers (IIPE)
with Coke Dry Cooling Plant (CDCP), bigger Blast Furnaces with Top gas pressure
Recovery Turbine (TRT) & Pulverized Coal Injection (PCI) System, Sinter Plants I. Indo USSR Chamber of Commerce and Industries (IUCCI)
with heat recovery facility from sinter cooler, Walking Beam Reheating Furnace in J. Institute of Public Enterprises (IPE)
Rolling Mills, Gas-fired boilers for power generation, etc.
K. Institute of Rail Transport (IRT)
L. Project Management Associate (PMA)
M. The Energy and Research Institute (TERI)
N. World Confederation of Productivity Science (WCPS)
O. Standing Conference of Public Enterprises (SCOPE)
P. Indian Steel Association (ISA)
Q. Indian Society for Training and Development (ISTD)
R. All India Organisation of Employers (AIOE)
2. Have you advocated / lobbied through above associations for the advancement
or improvement of public good? Yes / No; if yes, specify the broad areas (drop
box: Governance and Administration, Economic Reforms, Inclusive Development
Polices, Energy Security, Water, Food Security, Sustainable Business Principles,
Solar panels of the Power Plant at RSP.
Others)
No.
As a corporate entity, SAIL is promoting use of renewable energy at its Plants and Principle 8: Businesses should support inclusive growth and equitable development
Units. Following projects have already been implemented in recent years: 1. Does the Company have specified programmes / initiatives / projects in pursuit
• 1 MW ground mounted Solar Power Plant connected with electrical grid system of the policy related to Principle 8? If yes, details thereof.
of the State Electricity Board at RSP. Yes, SAIL's Social Objective is synonymous with Corporate Social Responsibility
• 3 MW roof top solar power units on various buildings at Plants and Units. (CSR). Apart from the business of manufacturing steel, the objective of the Company
In addition, the following projects/schemes for harnessing renewable energy are is to conduct business in ways that produce social, environmental and economic
under progress: benefits to the communities in which it operates. For any organization, CSR begins
with being aware of the impact of its business on society.
• 10 MW Hydel power plant at Mandira Dam, RSP, for which a Joint Venture
Agreement was signed between RSP and Green Energy Development With the underlying philosophy and a credo to make a meaningful difference in
Corporation of Odisha Limited (GEDCOL). people's lives, SAIL has been structuring and implementing CSR initiatives right
from the inception. These efforts have seen the erstwhile obscure villages, where
• 6.195 MW roof-top solar units on different buildings under Ministry of New SAIL Plants are located, turn into industrial hubs today.
and Renewable Energy (MNRE) scheme.
SAIL's CSR initiatives are undertaken in conformity to 'The Companies Act, 2013'
SAIL has also set a target of generating approximately 240 MW of renewable energy and CSR Rules, 2014. SAIL carries out CSR projects in and around steel townships,
at following locations: mines and far flung locations across the Country in the area of rural development,
• 120 MW capacity solar power plant at Bokaro. including maintenance of Model Steel Villages (MSVs), Providing Medical and Health-
• 50 MW capacity solar power plant at Salem. Care, Immunization, Ante and post-natal care, Education, Access to water facilities,
Roadside tree plantation, Environment Sustainability, Women Empowerment,
• 40 MW capacity solar power plant at Rourkela. Sustainable Income Generation through Self Help Groups, Assistance to Sr. Citizens,
• 25 MW capacity solar power plant at Kulti. Divyangs (PwD), Promotion of Sports, Art & Culture, etc.
• 7 MW capacity solar power plant at Bhilai. 2. Are the programmes / projects undertaken through in-house team / own
Initiatives towards application of clean technology, energy-efficiency, renewable foundation / external NGO / government structures / any other organization?
energy etc. may be referred to the hyperlink, as mentioned https://www.sail.co.in/ Under the guidance of the Board level CSR Committee, the CSR activities/projects
sites/ default/files/ClimateChange.pdf. listed in the approved Annual Plan of SAIL, are implemented using internal resources
6. Are the Emissions/Wastes generated by the Company within the permissible or through an identified suitable external agency or through providing financial
limits given by CPCB/SPCB for the financial year being reported? assistance to NGOs/specialized agencies/ institutions/societies as per the provisions
of Companies Act, 2013, CSR Rules and CSR Policy of the Company.
The "Consent to Operate" certificates are issued to SAIL Plants and Mines by the
respective State Pollution Control Boards (SPCBs). As per the conditions stipulated Since CSR projects are long term/continuous in nature like providing education,
in the "Consent to Operate", the applicable norms for air emission and effluent healthcare, mid-day meals, sustainable livelihood generation through Self-Help
discharge quality are mostly complied with. In addition, various wastes generated Groups (SHGs), etc., some of the projects are implemented through specialised
are handled and disposed in environment-friendly manner as per the existing set of agencies, depending on the expertise available with them like Mid-day meals project
guidelines/rules. Compliance reports to this effect are also reported to the CPCB/ through Akshaya Patra Foundation at Bhilai & Rourkela, Comprehensive Water &
SPCB on regular basis. Sanitation Project in the peripheral villages of Rourkela in association with Gram

107
 Vikas, Sustainable livelihood generation projects at Bokaro through Jharcraft and Healthcare: SAIL's extensive & specialised Healthcare Infrastructure provided basic
different projects at various Plant/Unit locations through RamaKrishna Mission, and specialized healthcare to about 1.72 crore people living in the vicinity of its
etc. Plants/Units during the period 2011-18.
Except in cases where financial assistance is provided for a specific CSR project About 3050 health camps have been organised for providing medical facilities like
proposed by a specific agency, the external implementation partner having strong free health check-up, lab investigations, medicine, immunization, at the doorsteps
credentials & track records, are identified for undertaking CSR projects, as defined of over 60,000 natives and through Ambulances/MMUs among 44,000 villagers
in 'The Companies Act, 2013'. during Financial Year 2018-19.
3. Have you done any impact assessment of your initiative? Vocational and specialised skill development trainings have been imparted to 710
In SAIL, every Plant/Unit has a high level committee headed by senior EDs/GMs, village youths & 1168 women folk in 2018-19 in industrial & agriculture techniques,
which recommends the CSR projects to be taken up by the respective Plant/Unit. soft skills, handlooms, empowering them to bond with the mainstream. About 816
The same committee monitors the progress & execution of these projects as well rural youths have been sponsored for ITI trainings at various ITIs.
as undertakes audits of social benefits achieved from the CSR initiatives undertaken. Rural Development: Over 79.03 Lakh people across 450 villages have been
The impact assessment/social audit of the Company's CSR & Sustainability initiatives connected to mainstream by SAIL since its inception by constructing and repairing
has also been done through external professional agencies in the years 2015 and of roads. Over 8176 water sources have been installed during last five years thereby
2016. enabling easy access to drinking water to about 50 lakh people living in far-flung
areas.
In addition, SAIL has a strong internal mechanism to monitor the activities/ initiatives
undertaken under CSR & Sustainability. The Board Sub-Committee on CSR reviews/ Environment Sustenance: SAIL is maintaining parks, water bodies & botanical
monitors CSR & Sustainability activities on regular basis. gardens in its townships and plantation & maintenance of over 5 Lakh trees at
various locations has also been carried out for environment conservation.
4. What is the Company's direct contribution to community development projects
- Amount in INR and the details of the projects undertaken? Sports, Art & Culture: SAIL is regularly organizing inter-village sports tournaments,
extending support to major national sports events & tournaments. Also, supporting
In accordance with the CSR provisions of Company's Act, 2013, at least 2% of the and coaching aspiring sportsmen and women through its residential spor ts
average net profit of the immediately preceding three financial years is allocated for academies at Bokaro (Football), Rourkela (Hockey), Bhilai (Athletics for boys),
undertaking CSR activities in a fiscal. In spite of the fact that SAIL incurred losses Durgapur (Athletics for girls) and Kiriburu, Jharkhand (Archery).
during FY 2015-16 to 2017-18, SAIL Board allocated budget in order to sustain the
ongoing CSR activities (in consonance with Schedule-VII of The Companies Act, 5. Have you taken steps to ensure that this community development initiative is
2013). CSR budget allocation and expenditure since FY 2016-17 are as follows: successfully adopted by the community? Please explain in 50 words, or so.
(` crore) SAIL Plants/Units have always conducted informal stakeholder engagements in
their respective areas. This exercise supports in identifying their needs, local issues
Year CSR Allocation CSR Expenditure requiring attention and intervention. For peripheral villages, dialogues are normally
held with the local representatives as and when required in connection with the
2016-17 29.34 29.05 peripheral developmental activities. A well structured organizational mechanism is
(includes unspent amount of in place at SAIL Plants/Units for planning CSR activities in consultation with local
`24 crs. of FY 2015-16) authorities and various stakeholders.
2017-18 26.00 25.70 Further, reforms/updates of the processes based on the feedback received from
(includes unspent amount of the beneficiaries are carried out so that the sense of ownership is generated among
`0.29 crs. of FY 2016-17) the community and social intervention is adopted in letter and spirit.
Principle 9: Businesses should engage with and provide value to their customers and
2018-19 30.00 31.18 consumers in a responsible manner
(includes unspent amount of
`0.30 crs. of FY 2017-18) 1. What percentage of customer complaints / consumer cases is pending as on
the end of financial year?
Apart from the exclusive CSR budget, SAIL also spends to the tune of `350 crores No customer complaints were pending with the Company in the beginning of the
annually for providing social facilities to Non-SAIL populace residing in the peripheral financial year 2018-19. During the year, a total of 2,497 complaints were received
areas of SAIL Plants/Units, either free or at a very nominal cost, such as Healthcare, from various customers, out of which 2466 complaints were satisfactorily settled
Education, Sanitation, Drinking water availability, Sports Coaching, promotion of within the year and 31 complaints (about 1.24%) were pending at the end of the
Art and Culture, etc. year.
SAIL Plants/Units are located mostly in backward areas that are inhabited by majority 2. Does the Company display product information on the product label, over and
of disadvantaged, vulnerable, marginalized, SC, ST and minorities. above what is mandated as per local laws? Yes / No / N.A. / Remarks (additional
The details of CSR activities undertaken are as follows: information)
SAIL had achieved 100% compliance by construction of 672 toilets in schools SAIL provides detailed Test Certificates to customers with each supply. Packet/
without toilets/having dysfunctional toilets falling within the peripherals of SAIL Coil/Heat number, size, quality of the Item is displayed on the label for source
Plants & Units acknowledging the Prime Minister's ambitious drive for promotion of authentication. In case of branded products, product brand is also displayed.
sanitation and hygiene in remote areas, under "Swachch Vidyalay Campaign". 3. Is there any case filed by any stakeholder against the Company regarding unfair
SAIL is providing healthy & nutritious Mid-Day Meals to around 64,000 students trade practices, irresponsible advertising and / or anti-competitive behaviour
daily in more than 600 Govt. schools in Bhilai and Rourkela, in association with the during the last five years and pending as of end of financial year? If so, provide
Akshya Patra Foundation. details thereof, in about 50 words or so.
Education: In order to develop the society through education, SAIL is supporting There is no such case pending as of end of financial year.
over 77 schools within and outside its steel townships to provide modern education 4. Did your Company carry out any consumer survey / consumer satisfaction trends?
to more than 40,000 children. Special Schools (Kalyan Vidyalaya) for BPL category
students are run at integrated steel plant locations with facilities of free education, Yes, Customer satisfaction is measured in a structured in the form of Customer
mid-day meals, uniforms, shoes, text books, stationary items, school bag, water Satisfaction Index (CSI), which is computed every month in respect of Key Account
bottles and transportation under CSR. customers of the Company, based on the feedback collected from them on
parameters pertaining to Product Quality, Service and Price.

108
Consolidated Balance Sheet Annexure-V to the Board’s Report
As at 31st March, 2019 (` crore)

Note No. As at As at
31st March, 2019 31st March, 2018
ASSETS
Non-current assets
(a) Property, Plant and Equipment 4 59922.27 57169.57
(b) Capital work-in-progress 5 16013.61 18395.43
(c) Investment Property 6 1.09 0.83
(d) Intangible assets 7 1451.14 1455.03
(e) Investments accounted for using the equity method 2839.60 2555.01
(f) Financial assets
(i) Investments 8 135.23 73.85
(ii) Trade receivables 9 - -
(iii) Loans 10 563.98 448.28
(iv) Other financial assets 11 254.87 162.64
(g) Deferred tax assets (net) 12 2866.77 4161.98
(h) Current tax assests (net) 13 154.09 190.39
(i) Other non-current assets 14 1356.60 1078.54
85559.25 85691.55
Current Assets
(a) Inventories 15 19510.33 17024.30
(b) Financial assets
(i) Trade receivables 16 4497.48 3870.99
(ii) Cash and cash equivalents 17 (i) 65.58 94.00
(iii) Other bank balances 17 (ii) 222.11 251.55
(iv) Loans 18 54.04 63.92
(v) Other financial assets 19 2161.21 2772.38
(c) Other current assets 20 5870.83 5639.78
32381.58 29716.92
Assets classified as held for sale 21 11.47 32.50
TOTAL ASSETS 117952.30 115440.97
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 22 4130.53 4130.53
(b) Other equity 23 35515.62 32816.12
(c) Non-controlling interest 0.01 0.01
39646.16 36946.66
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 24 30802.66 29777.16
(ii) Trade payables 25
(a) total outstanding dues of micro enterprises and small enterprises - -
(b) total outstanding dues of creditors other than micro enterprises and small enterprises 6.82 6.38
(iii) Other financial liabilities 26 1330.62 1179.36
(b) Provisions 27 4295.64 3974.42
(c) Other non-current liabilities 28 253.19 138.33
36688.93 35075.65
Current liabilities
(a) Financial liabilities
(i) Borrowings 29 10631.22 12244.32
(ii) Trade payables 30
(a) total outstanding dues of micro enterprises and small enterprises 67.45 48.22
(b) total outstanding dues of creditors other than micro enterprises and small enterprises 7157.79 7478.42
(iii) Other financial liabilities 31 14738.09 14190.32
(b) Other current liabilities 32 6707.26 7144.75
(c) Provisions 33 2315.40 2312.63
(d) Current tax liabilities (net) 33a - -
41,617.21 43,418.66
TOTAL EQUITY AND LIABILITIES 117952.30 115440.97
Significant Accounting Policies 3
The accompanying notes are an integral part of these consolidated financial statements.

For and on behalf of Board of Directors

Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN: 03256818
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Shrenik Mehta ] [ Bedanta Bhattacharya ] [ Vipul Girotra ] [A K Sabat ]
Partner Partner Partner Partner
M. No. 063769 M. No. 060855 M. No. 084312 M. No. 030310
Place : New Delhi
Dated : May 30, 2019

109
Consolidated Statement of Profit & Loss
For the year ended 31st March, 2019
(` crore)
st st
Note No. Year ended 31 March, 2019 Year ended 31 March, 2018

Income
Revenue from operations 34 66973.58 58966.16
Other income 35 494.52 415.19
Total Income 67468.10 59381.35
Expenses
Cost of materials consumed 36 32402.97 26737.90
Changes in inventories of finished goods and work in progress 37 (2716.16) 1138.82
Excise duty - 1406.14
Employee benefits expense 38 8849.10 8865.87
Finance costs 39 3154.92 2822.75
Depreciation and amortisation expense 3385.34 3065.97
Other expenses 40 18676.16 16181.82
Total expenses 63752.33 60219.27
Profit/(Loss) before Exceptional items, share of net profits of 3715.77 (837.92)
investment accounted for using equity method and tax
Share of Profit/(Loss) in investments accounted for using equity method 222.87 284.86
Profit/(Loss) before Exceptional items and tax 3938.64 (553.06)
Less: Exceptional items 41 389.40 (26.43)
Profit/(Loss) before tax 3549.24 (526.63)
Tax expense
Current tax 8.67 7.06
Deferred tax 1,186.99 (287.90)
Earlier years 4.87 35.61
Total tax expense 1,200.53 (245.23)
Profit/(Loss) for the year 2348.71 (281.40)
Other Comprehensive income
A (i) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans 330.01 275.32
Gain and losses from investments in equity instruments designated at fair value through OCI 57.96 8.79
(ii) Income tax relating to items that will not be reclassified to profit or loss (128.82) (97.80)
B (i) Items that will be reclassified to profit or loss
Share of the OCI of associate and joint ventures accounted for using the equity method 95.75 0.49
(ii) Income tax relating to items that will be reclassified to profit or loss - -
Other Comprehensive Income/(Loss) for the year 354.90 186.80
Total Comprehensive Income/(Loss) for the year 2703.61 (94.60)
Profit attributable to owners
Owners of the parent 2348.71 (281.40)
Non-controlling interest - -
2348.71 (281.40)
Total Comprehensive Income/(Loss) for the year
Owners of the parent 2703.61 (94.60)
Non-controlling interest - -
2703.61 (94.60)
Earnings per equity share
Number of equity shares (face value ` 10/- each) 4130525289 4130525289
Basic and diluted earnings per share (`) 41A 5.69 (0.68)
Significant Accounting Policies 3
The accompanying notes are an integral part of these consolidated financial statements.

For and on behalf of Board of Directors

Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN: 03256818
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Shrenik Mehta ] [ Bedanta Bhattacharya ] [ Vipul Girotra ] [A K Sabat ]
Partner Partner Partner Partner
M. No. 063769 M. No. 060855 M. No. 084312 M. No. 030310
Place : New Delhi
Dated : May 30, 2019

110
Consolidated Statement of Changes in Equity
For the year ended 31st March, 2019

A. Equity Share Capital (` crore)

Particulars Balance as at Changes in equity Balance as at
1st April, 2017 share capital 31st March, 2018

Equity shares with voting rights 4,130.41 - 4,130.41

Equity shares without voting rights 0.12 - 0.12
Balance as at Changes in equity Balance as at
1st April, 2018 share capital 31st March, 2019

Equity shares with voting rights 4,130.41 - 4,130.41

Equity shares without voting rights 0.12 - 0.12

B. Other Equity (` crore)

Reserves and Surplus Other comprehensive

income - Reserve
Capital Securities General Bond Retained Equity Investment Total Non- Total
Reserve Premium Reserve Redemption Earnings Instruments accounted other controlling
Reserve through for as equity interest
Other equity
Comprehensive method
Income

Balance as at 1st April, 2017 504.33 235.10 5,102.76 1,973.64 25,041.72 2.80 51.38 32,911.73 0.01 32,911.74
(Loss) for the year - - - - (281.40) - - (281.40) - (281.40)
Other comprehensive income/(loss) - - - - 177.52 8.79 0.49 186.80 - 186.80
for the year
Total comprehensive income/ (loss) for the year - - - - (103.88) 8.79 0.49 (94.60) - (94.60)
Transfer from bond redemption reserve - - - (239.75) 239.75 - - - - -
Transfer to bond redemption reserve - - - 606.80 (606.80) - - - - -
Transfer to general reserve - - 1.38 - (1.38) - - - - -
Changes due to additional investment in 6.59 - - - - - - 6.59 - 6.59
joint ventures
Transaction with owners in their capacity -
as owners
Dividends - - - - (6.31) - - (6.31) - (6.31)
Tax on dividends - - - - (1.28) - - (1.28) - (1.28)
Transaction with non-controlling interest - - - - (0.01) - - (0.01) - (0.01)
Balance as at 31st March, 2018 510.92 235.10 5,104.14 2,340.69 24,561.81 11.59 51.87 32,816.12 0.01 32,816.13
Balance as at 1st April, 2018 510.92 235.10 5,104.14 2,340.69 24,561.81 11.59 51.87 32,816.12 0.01 32,816.13
(Loss) for the year - - - - 2,348.71 - - 2,348.71 - 2,348.71
Other comprehensive income/(loss) for the year - - - - 214.69 44.46 95.75 354.90 - 354.90
Total comprehensive income/ (loss) for the year - - - - 2,563.40 44.46 95.75 2,703.61 - 2,703.61
Transfer from bond redemption reserve - - - (730.10) 730.10 - - - - -
Transfer to bond redemption reserve - - - 383.55 (383.55) - - - - -
Transfer to general reserve - - 2.18 - (2.18) - - - - -
Changes due to additional investment in 1.02 - - - - - - 1.02 - 1.02
joint ventures
Transaction with owners in their capacity as owners -
Dividends - - - - (4.26) - - (4.26) - (4.26)
Tax on dividends - - - - (0.88) - - (0.88) - (0.88)
Transaction with non-controlling interest - - - - 0.01 - - 0.01 - 0.01
Balance as at 31st March, 2019 511.94 235.10 5,106.32 1,994.14 27,464.45 56.05 147.62 35,515.62 0.01 35,515.63

For and on behalf of Board of Directors

Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN: 03256818
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Shrenik Mehta ] [ Bedanta Bhattacharya ] [ Vipul Girotra ] [A K Sabat ]
Partner Partner Partner Partner
M. No. 063769 M. No. 060855 M. No. 084312 M. No. 030310
Place : New Delhi
Dated : May 30, 2019

111
Cash Flow Statement
For the year ended 31st March, 2019 (` crore)

For the year ended For the year ended

31st March, 2019 31st March, 2018

A. CASH FLOW FROM OPERATING ACTIVITIES

Profit/(Loss) before tax 3549.24 (526.63)
Adjustments for:
Depreciation and amortisation expenses 3385.34 3065.97
Loss/(Gain) on disposal of fixed assets (net) 45.27 72.80
Interest income (128.32) (9.79)
Dividend income (1.73) (1.85)
Finance costs 3113.23 2822.75
Unrealised Loss/(Gain) on foreign exchange fluctuations 41.69 -
Bad debts and provision for doubtful advances/receivables 65.12 85.42
Other provisions 177.52 130.78
Share of profit from joint ventures (222.87) (284.86)
Unclaimed balances and excess provisions written back (146.86) (172.26)
Operating Profit/(Loss) before working capital changes 9877.63 5182.33
Changes in assets and liabilities:
Trade receivables (677.57) (849.46)
Loans, other financial assets and other assets (38.00) (1747.53)
Trade payable (300.96) 2307.25
Other financial liabilities, other liabilities and provisions 999.82 2813.91
Inventories (2647.93) (1405.91)
Cash flow from operating activities post working capital changes 7212.99 6300.59
Income tax paid (net) 2.16 (137.05)
Net cash flow from operating activities (A) 7215.15 6163.54
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant & equipment (including capital work-in-progress) and intangibles (3981.19) (6757.62)
Proceeds from sale/disposal of property, plant & equipment 100.71 153.09
Purchase of current and non-current investments 26.50 126.65
Movement in fixed deposits (net) 29.44 (13.36)
Interest received 128.32 9.79
Dividend received 1.73 1.85
Net cash flows/(used) in investing activities (B) (3694.49) (6479.60)
C. CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings (net) 1374.42 10689.68
Proceeds from short-term borrowings (net) (1613.10) (7568.72)
Finance cost paid (3310.40) (2851.54)
Net cash flows/(used) in financing activities (C) (3549.08) 269.42
Increase in cash and cash equivalents (A+B+C) (28.42) (46.64)
Cash and cash equivalents at the beginning of the year 94.00 140.64
Cash and cash equivalents at the end of the year (Note No. 17(i)) 65.58 94.00
The amendments to Ind AS 7 - Statement of Cash Flows requires the entity to provide disclosures that enables users of financial statements to evaluate changes in liabilities arising from
financial activities, including both changes arising from cash flows and non cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in Balance
Sheet for liabilities arising from financial activities, to meet the disclosure requirement. This amendment has become effective from 1st April, 2017 and the required disclosure is made
below. There is no other impact on the financial statements due to this amendment.
(` crore)
Non cash changes
As at Cash Flows Fair Value Current/Non Current As at
31.03.2018 Changes Classification 31.03.2019
Borrowings - Non Current 29777.16 1,303.22 3,329.99 (3,607.71) 30802.66
Current Maturities of Long Term Debt 3271.71 (3,271.71) - 3607.71 3607.71
Borrowings - Current 12244.32 (1,223.77) (389.33) - 10631.22

The cash flow statement has been prepared under the indirect method as set out in Ind AS-7, Statement of Cash Flows.
The accompanying notes are an integral part of these consolidated financial statements.
For and on behalf of Board of Directors
Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN: 03256818
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Shrenik Mehta ] [ Bedanta Bhattacharya ] [ Vipul Girotra ] [A K Sabat ]
Partner Partner Partner Partner
M. No. 063769 M. No. 060855 M. No. 084312 M. No. 030310
Place : New Delhi
Dated : May 30, 2019

112
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
1. Corporate Information time of acquisition, as the case may be, which will be inherent in investment.
Nature of Operations The carrying amount of the investment is adjusted thereafter for the post
acquisition change in the share of net assets of the investee, adjusted where
Steel Authority of India Limited (‘SAIL’ or the ‘Parent Company’), a public sector necessary to ensure consistency with the accounting policies of the Group. The
undertaking conferred with Maharatna status by Government of India and it’s consolidated statement of profit and loss includes the Group's share of the results
subsidiaries (the Parent Company and its subsidiaries together referred to as of the operations of the investee. Dividends received or receivable from associate
the ‘Group’), it’s joint ventures and it’s associate is engaged primarly in steel ventures are recognised as a reduction in the carrying amount of the investment.
manucturing business in the country. Unrealised gains on transactions between the Group and associates are eliminated
General information and statement of compliance with Ind AS to the extent of the Group's interest in these entities.
The consolidated financial statements of the Group and joint ventures & Joint ventures
associates have been prepared in accordance with the Indian Accounting
Investments in joint arrangements are classified as either Joint operations or
Standards as notified under Section 133 of the Companies Act, 2013 read with
Joint ventures. The classification depends on the contractual rights and
the Companies (Indian Accounting Standards) Rules, 2015 (by Ministry of
obligations of each investor, rather than the legal structure of the Joint
Corporate Affairs ('MCA')). The Group and joint ventures & associates have
arrangement.
uniformly applied the accounting policies during the periods presented.
• Joint ventures - Interest in joint venture are accounted for using the equity
The consolidated financial statements for the year ended 31st March, 2019 were
method, after initially being recognised at cost. The carrying amount of
authorized and approved by the Board of Directors on 30th May, 2019.
the investment is adjusted thereafter for the post acquisition change in
2. Summary of significant accounting policies the share of net assets of the investee, adjusted where necessary to
a) Overall consideration ensure consistency with the accounting policies of the Group. The
consolidated statement of profit and loss includes the Group's share of
The consolidated financial statements have been prepared using the significant the results of the operations of the investee. Dividends received or
accounting policies and measurement bases summarised below, which were receivable from joint ventures are recognised as a reduction in the carrying
applied uniformly during the period presented: amount of the investment. Unrealised gains on transactions between the
Basis of preparation Group and joint ventures are eliminated to the extent of the Group's interest
The financial statements have been prepared on going concern basis under the in these entities.
historical cost basis except for the following : • Joint operations - The Group recognises its direct right to the assets,
• certain financial assets and liabilities which are classified as fair value liabilities, revenue and expenses of Joint operations and its share of any
through profit and loss or fair value through other comprehensive income; jointly held or incurred assets, liabilities, revenue and expenses. These
and have been incorporated in the financial statement under the appropriate
heading.
• assets held for sale, at the lower of the carrying amounts and fair value
less cost to sell When the Group's share of losses in an equity-accounted investment equals or
exceeds its interest in the entity, including any other unsecured long-term
• defined benefit plans - plan assets measured at fair value. receivables, the Group does not recognise further losses, unless it has incurred
Basis of consolidation obligations or made payments on behalf of the other entity.
Subsidiaries b) Business combinations
Subsidiaries are all entities (including structured entities) over which the Group The Group applies the acquisition method in accounting for business
has control. The Group controls an entity when the Group is exposed to, or has combinations. The consideration transferred by the Group to obtain control of a
rights to, variable returns from its involvement with the entity and has the ability subsidiary is calculated as the sum of the fair values of assets transferred on
to affect those returns through its power to direct the relevant activities of the acquisition-date, liabilities incurred and the equity interests issued by the Group,
entity. Subsidiaries are fully consolidated from the date on which control is which includes the fair value of any asset or liability arising from a contingent
transferred to the Group. They are deconsolidated from the date when control consideration arrangement. Acquisition costs are expensed as incurred.
ceases. Profit/(loss) and Other Compresensive Income ('OCI') of subsidiaries
acquired or disposed of during the period are recognised from the effective date Identifiable assets acquired and liabilities and contingent liabilities assumed in a
of acquisition, or up to the effective date of disposal, as applicable. All the business combination are measured initially at their fair values on acquisition-
consolidated subsidiaries have a consistent reporting date of 31 March, 2019. date.
The Group consolidate the financial statements of the parent and its subsidiaries Goodwill is initially measured at cost, being the excess of the aggregate of the
on line by line basis adding together the items of assets, liabilities, equity, income consideration transferred and the amount recognised for non-controlling interests,
and expenses. Intercompany transactions, balances and unrealised gains on and any previous interest held, over the net identifiable assets acquired and
transactions between group companies are eliminated. Unrealised losses are liabilities assumed. If the fair value of the net assets acquired is in excess of the
also eliminated unless the transaction provides evidence of an impairment of aggregate consideration transferred, the resulting gain on bargain purchase is
the transferred asset. Accounting policies of subsidiaries have been changed recognised in OCI and accumulated in equity as capital reserve. However, if
where necessary to ensure consistency with the policies adopted by the Group. there is no clear evidence of bargain purchase, the entity recognise the gain
directly in equity as capital reserve, without routing the same through OCI.
Non-controlling interests, presented as part of equity, represent the portion of a
subsidiary's statement of profit and loss and net assets that is not held by the Where settlement of any part of cash consideration is deferred, the amount
Group. Profit/(loss) and each component of OCI are attributed to the equity payable in future is discounted to their present value as at the date of exchange.
holders of the Parent Company and to the non-controlling interests, even if this The discount rate used is the Group's incremental borrowing rate, being the rate
results in the non-controlling interests having a deficit balance. The Group at which the similar borrowing could be obtained from an independent financier
attributes total comprehensive income or loss of the subsidiaries between the under comparable terms and condition.
owners of the parent and the non-controlling interests based on their respective Contingent consideration is classified either as equity or financial liability. Amount
ownership interests. classified as financial liability are subsequently re-measured to fair value with
The Group treats transactions with non-controlling interests that do not result in changes in fair value recognised in statement of profit and loss.
a loss of control, as transactions with equity owners of the group. Such a change Business combinations involving entities or businesses under common control
in ownership interest results in an adjustment between the carrying amounts of have been accounted for using the pooling of interest method. The assets and
the controlling and non-controlling interests to reflect their relative interests in liabilities of the combining entities are reflected at their carrying amounts. No
the subsidiary. Any difference between the amount of the adjustment to non- adjustments have been made to reflect fair values, or to recognise any new
controlling interests and any consideration paid or received is recognised within assets or liabilities except changes made to harmonise the accounting policies.
equity.
c) Current versus Non-current classification
Associates and joint ventures
The Group presents assets and liabilities in the balance sheet based on current/
Associates non-current classification. An asset is classified as current when it is:
Investment in entities in which there exists significant influence but not a • Expected to be realised or intended to sold or consumed in normal
controlling interest are accounted for under the equity method i.e. the investment operating cycle
is initially recorded at cost, identifying any goodwill/capital reserve arising at the
• Held primarily for the purpose of trading

113
 • Expected to be realised within twelve months after the reporting period,
or Asset category Estimated useful life (in years)
• Cash or cash equivalent unless restricted from being exchanged or used Factory Buildings 35 to 40
to settle a liability for at least twelve months after the reporting period Plant and Machinery 10 to 40
All other assets are classified as non-current. Water Supply & Sewerage 25 to 40
A liability is classified as current when: Railway Lines & Sidings 35 to 40
• It is expected to be settled in normal operating cycle For these classes of assets, based on technical evaluation carried out by external
• It is held primarily for the purpose of trading technical experts, the Group believes that the useful lives as given above best
represent the period over which Group expects to use these assets. Hence, the
• It is due to be settled within twelve months after the reporting period, or useful lives for these assets are different from the useful lives as prescribed
• There is no unconditional right to defer the settlement of the liability for at under Part C of Schedule II of the Companies Act 2013.
least twelve months after the reporting period The estimated useful lives and residual values of depreciable/ amortisable assets
All other liabilities are classified as non-current. are reviewed at each year end, with the effect of any changes in estimate
accounted for on a prospective basis.
The operating cycle is the time between the acquisition of assets for processing
and their realisation in cash and cash equivalents. Deferred tax assets and Where the historical cost of a depreciable asset undergoes a change, the
liabilities are classified as non-current assets and liabilities. depreciation on the revised unamortised depreciable amount is provided over
the residual useful life of the asset. Depreciation on addition/ deletion during the
2.1 Functional and Presentation Currency year is provided on pro-rata basis with reference to the month of addition/ deletion.
The Financial Statements have been presented in Indian Rupees (`), which is Assets costing up to ` 5000/- are fully depreciated in the year in which they are
the Group's functional currency. All financial information presented in ` have put to use.
been rounded off to the nearest two decimals of Crore unless otherwise stated.
Depreciation on Bhilai Expansion Power Project (pp-II) located at Bhilai is charged
2.2 Use of Estimates and Management Judgement on straight line method following the rates and methodology notified by the
In preparing the financial statements in conformity with Group's Accounting CERC Tariff Regulations in accordance with Schedule II of the 'Companies Act,
Policies, management is required to make estimates and assumptions that affect 2013.
reported amounts of assets and liabilities and the disclosure of contingent Depreciation on capital spares is provided over the useful life of the spare or
liabilities as at the date of the financial statements, the amounts of revenue and remaining useful life of the mother asset, as reassessed, whichever is lower.
expenses during the reported period and notes to the Financial Statements.
3.2 Intangible assets
Actual results could differ from those estimates. Any revision to such estimates
is recognised in the period in which the same is determined. 3.2.1 Recognition and measurement
3 SIGNIFICANT ACCOUNTING POLICIES Mining Rights
A summary of the significant accounting policies applied in the preparation of Mining Rights are treated as Intangible Assets and all related costs thereof are
the financial statements is given below. These accounting policies have been amortised on the basis of annual production to the total estimated mineable
applied consistently to all the periods presented in the financial statements. reserves. In case the mining rights are not renewed, the balance related cost
will be charged to revenue in the year of decision of non- renewal.
3.1 Property, Plant and Equipment
3.1.1 Recognition and Measurement Acquisition Cost i.e. cost associated with acquisition of licenses, and rights to
explore including related professional fees, payment towards statutory forestry
Tangible Assets clearances, as and when incurred, are treated as addition to the Mining Rights.
Property, plant and equipment held for use in the production or/and supply of Other Intangible Assets
goods or services, or for administrative purposes, are stated in the balance
sheet at cost, less any subsequent accumulated depreciation and impairment Software which is not an integral part of related hardware, is treated as intangible
losses. The initial cost at cash price equivalence of property, plant and equipment asset and amortised over a period of five years or its licence period, whichever
acquired comprises its purchase price, including import duties and non- is less.
refundable purchase taxes, any directly attributable costs of bringing the assets Research and development
to its working condition and location and present value of any obligatory
Development expenditure is capitalised only if it can be measured reliably and
decommissioning costs for its intended use. Plant and Machinery also include
the related asset and process are identifiable and controlled by the Group.
assets held under finance lease.
Research and other development expenditure is recognised as revenue
In case of self-constructed assets, cost includes the costs of all materials used expenditure as and when incurred.
in construction, direct labour, allocation of overheads, directly attributable
3.2.2 Subsequent Cost
borrowing costs including trial run expenses (net of revenue)
Subsequent expenditure is capitalised only when it increases the future economic
Spares having useful life of more than one year and having value of ` 10 lakhs
benefits embodied in the specific asset to which it relates. All other expenditure
or more in each case, are capitalised under the respective heads as and when
is recognised in the Statement of Profit and Loss.
available for use.
3.3 Impairment of Non-Financial Assets
Profit or loss arising on the disposal of property, plant and equipment is recognised
in the Statement of Profit and Loss. The Group reviews the carrying amount of its assets on each Balance Sheet
3.1.2 Subsequent Cost date for the purpose of ascertaining impairment indicators if any, by considering
assets of entire one Plant as Cash Generating Unit (CGU). If any such indication
Subsequent expenditure is recognised as an increase in the carrying amount of exists, the assets' recoverable amount is estimated, as higher of the Net Selling
the asset or recognised as a separate asset, as appropriate, only when it is Price and the Value in Use. An impairment loss is recognised whenever the
probable that future economic benefits derived from the cost incurred will flow carrying amount of an asset exceeds its recoverable amount.
to the Group and the cost of the item can be measured reliably. The carrying
amount of replaced item (s) is derecognised. . Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of its
Any repairs of ` 50 lakhs or more of property, plant and equipment are recognised recoverable amount, so that the increased carrying amount does not exceed
in the carrying amount of the item if it is probable that the future economic the carrying amount that would have been determined had no impairment loss
benefits of the costs incurred will flow to the Group. The carrying amount of the been recognised for the asset (or cash-generating unit) in prior years. A reversal
replaced item (s) is derecognised. of an impairment loss is recognised immediately in the Statement of Profit and
3.1.3 Depreciation Loss.
Depreciation on tangible assets and investment property is provided on straight 3.4 Stripping Cost
line method, considering residual value of 5% of the cost of the asset, over the The stripping cost incurred during the production phase of a surface mine is
useful lives of the assets, as specified in Schedule II of the Companies Act, recognised as an asset if such cost provides a benefit in terms of improved
2013 except in case of Factory Buildings, Plant and Machinery, Water Supply & access to ore in future periods and following criteria are met:
Sewerage and Railway Lines & Sidings and components thereof, where useful
life is determined by technical experts. The useful life assumed by the technical • It is probable that the future economic benefits (improved access to an
experts is as under: ore body) associated with the stripping activity will flow to the entity,

114
 • The entity can identify the component of an ore body for which access 3.9 Employee Benefits
has been improved, and
Defined Contribution Plan
• The costs relating to the improved access to that component can be
A defined contribution plan is a plan under which the Group pays fixed
measured reliably.
contributions into a separate entity. Payments to defined contribution retirement
The expenditure, which cannot be specifically identified to have been incurred benefit plans are recognised as an expense when employees have rendered
to access ore is charged to revenue, based on stripping ratio as per 5 year service entitling them to the contributions. Contributions towards Provident Funds
mining plan for mines, except collieries which is based on project report. are charged to the Statement of Profit and Loss of the period when the
contributions to the Funds are due.
3.5 Borrowing costs
Defined Benefit Plan
Borrowing costs directly attributable to the acquisition or construction of a
qualifying asset, which takes substantial period of time, are capitalised as a part Defined benefit plans are the amount of the benefit that an employee will receive
of the cost of that asset, during the period of time that is necessary to complete on completion of services by reference to length of service, last drawn salary or
and prepare the asset for its intended use. direct costs related to such benefits. The legal obligation for any benefits remains
with the Group.
The Group considers a period of twelve months or more as a substantial period
of time. The liability recognised for Defined Benefit Plans is the present value of the
Defined Benefit Obligation (DBO) at the reporting date less the fair value of plan
Transaction costs in respect of long-term borrowings are amortised over the
assets, together with adjustments for unrecognised actuarial gains or losses
tenor of respective loans using effective interest method. Other borrowing costs
and past service costs. Management estimates the present value of the DBO
are recognised in the Statement of Profit & Loss in the period in which these are
annually through valuations by an independent actuary using the projected unit
incurred.
credit method. Actuarial gains and losses are included in Statement of Profit
3.6 Inventories and Loss or Other Comprehensive Income of the year.
Raw materials, Stores & Spares and Finished/Semi-finished products (including Remeasurement, comprising of actuarial gains and losses, the effect of the
process scrap) are valued at lower of cost and net realisable value of the items changes to the asset ceiling (if applicable) and the return on plan assets (excluding
of the respective Plants/Units. In case of identified obsolete/ surplus/ non-moving interest), is reflected in the balance sheet with a charge or credit recognised in
items, necessary provision is made and charged to revenue. The net realisable other comprehensive income in the period in which they occur. Remeasurement
value of semi-finished special products, which have realisable value at finished recognised in other comprehensive income is reflected immediately in retained
stage only, is estimated for the purpose of comparison with cost. earnings and will not be reclassified to the statement of profit and loss.
Residue products and other scrap are valued at estimated net realisable value. Short Term Employee Benefits
The basis of determining cost is: Short term employee benefits comprise of employee costs such as salaries,
Raw materials - Periodical weighted average cost bonus, ex-gratia, annual leave and sick leave which are accrued in the year in
which the associated services are rendered by employees of the Group.
Minor raw materials - Moving weighted average cost
Liabilities recognised in respect of short-term employee benefits are measured
Stores & Spares - Moving weighted average cost at the undiscounted amount of the benefits expected to be paid in exchange for
Materials in-transit - at cost the related services.
Finished/Semi-finished products - material cost plus appropriate share of labour, Expenditure incurred on Voluntary Retirement Scheme is charged to the Statement
related overheads and duties. of Profit and Loss immediately.
3.7 Government Grants 3.10 Revenue Recognition
Government grants are recognised when there is reasonable assurance that the Revenue is measured at the fair value of consideration received or receivable.
Company will comply with the conditions attaching to them and that the grants
will be received. Sale of goods

Government grants are recognised in Statement of Profit and Loss on a systematic Sales are net of Goods and Services Tax (GST), rebates and price concessions.
basis over the periods in which the Company recognises as expenses the related Sales are recognised when it satisfy performance obligation by transferring
costs for which the grants are intended to compensate. Where the Grant relates promised goods or services (i.e. assets) to the customers and the customers
to an asset value, it is recognised as deferred income, and amortised over the obtain control of those goods or services. Where the contract prices are not
expected useful life of the asset. Other grants are recognised in the statement of finalised with government agencies, sales are accounted for on provisional basis.
Profit & Loss concurrent to the expenses to which such grants relate/ are intended Marine export sales are recognised on:
to cover.
i) the issue of bill of lading, or
Where the Company receives non-monetary grants, the asset and the grant are
recorded gross at fair amounts and released to the income statement over the ii) negotiation of export bills upon expiry of laycan period, in cases where
expected useful life and pattern of consumption of the benefit of the underlying realisation of material value without shipment is provided in the letters of
asset. credit of respective contracts, whichever is earlier.
3.8 Foreign Currency Transactions Export incentives under various schemes are recognised as income on certainty
Foreign currency transactions are translated into the functional currency of the of realisation.
Group using the exchange rates prevailing at the date of the transactions. Foreign The iron ore fines not readily useable/saleable are included in inventory and
exchange gains and losses resulting from the settlement and re-measurement revenue is recognised on disposal.
of monetary items denominated in foreign currency are recognised in the
Statement of Profit and Loss at period-end exchange rates. Interest and dividend income

The Group opted for accounting the exchange differences arising on reporting Interest income is reported on an accrual basis using the effective interest
of long term foreign currency monetary items in line with Companies (Accounting method. Dividends are recognised at the time the right to receive is established.
Standards) Amendment Rules 2009 relating to Accounting Standard-11 notified 3.11 Adjustment pertaining to Earlier Years
by Government of India on 31st March, 2009 (as amended on 29th December
2011), which will continue in accordance with Ind-AS 101 for all pre-existing Income/Expenditure relating to a prior period, which do not exceed 0.5% of
long term foreign currency monetary items as at 31st March 2016. Accordingly, Turnover in each case, are treated as income/expenditure of current year.
exchange differences (including arising out of forward exchange contracts)
3.12 Claims for Liquidated Damages and Price Escalation
relating to long term monetary items, arising during the year, in so far as they
relate to the acquisition of fixed assets, are adjusted in the carrying amount of Claims for liquidated damages are accounted for as and when these are
such assets. considered recoverable by the Parent Company. These are adjusted to the capital
Non-monetary items are not retranslated at period-end and are measured at cost or recognised in Statement of Profit and Loss, as the case may be on final
historical cost (translated using the exchange rates at the transaction date), settlement of Liquidated damages.
except for non-monetary items measured at fair value which are translated using Suppliers' and Contractors' claims for price escalation are accounted for to the
the exchange rates at the date when fair value was determined. extent such claims are accepted by the Parent Company.

115
3.13 Leases 3.17 Provisions, Contingent Liabilities and Contingent Assets
Group as a Lessee Provisions and Contingent Liabilities
Finance leases A Provision is recognised when the Group has present obligation as a result of
Finance leases, which effectively transfer to the lessee substantially all the risks a past event and it is probable that an outflow of resources will be required to
and benefits incidental to ownership of the leased item, are capitalised at the settle the obligation in respect of which a reliable estimate can be made. Provisions
lower of the fair value and present value of the minimum lease payments at the are discounted to their present value, where the time value of money is material.
inception of the lease term and disclosed as leased assets. Lease payments When some or all of the economic benefits required to settle a provision are
under such leases are apportioned between the finance charges and reduction expected to be recovered from a third party, the receivable is recognised as a
of the lease liability based on the implicit rate of return. Finance charges are separate asset if it is virtually certain that reimbursement will be received and
charged directly against income. Lease management fees, legal charges and the amount of the receivable can be measured reliably.
other initial direct costs are capitalised.
Contingent liability is a possible obligation arising from past events and the
If there is no reasonable certainty that the Group will obtain the ownership by existence of which will be confirmed only by the occurrence or non-occurrence
the end of lease term, capitalised leased assets are depreciated over the shorter of one or more uncertain future events not wholly within the control of the Group
of the estimated useful life of the asset or the lease term. or a present obligation that arises from past events but is not recognised because
Operating leases it is not possible that an outflow of resources embodying economic benefit will
Assets acquired on leases where a significant portion of risk and rewards of be required to settle the obligations or reliable estimate of the amount of the
ownership are retained by the lessor are classified as operating leases. Lease obligations cannot be made. The Group discloses the existence of contingent
rental are charged to statement of profit and loss on straight-line basis except liabilities in Other Notes to Financial Statements.
where scheduled increase in rent compensate the lessor for expected inflationary In cases where the possible outflow of economic resources as a result of present
costs. obligation is considered improbable or remote, no Provision is recognised or
Group as a Lessor disclosure is made.
Finance leases Contingent Assets
Leases which effectively transfer to the lessee substantially all the risks and Contingent assets usually arise from unplanned or other unexpected events that
benefits incidental to ownership of the leased item are classified and accounted give rise to the possibility of an inflow of economic benefits. Contingent Assets
for as finance lease. Lease rental receipts are apportioned between the finance are not recognised though are disclosed, where an inflow of economic benefits
income and capital repayment based on the implicit rate of return. Contingent is probable.
rents are recognised as revenue in the period in which they are earned. 3.18 Income Taxes
Operating leases Tax expense recognised in statement of profit and loss comprises the sum of
Leases in which the Group does not transfer substantially all the risks and rewards deferred tax and current tax not recognised in Other Comprehensive Income
of ownership of an asset are classified as operating leases. The respective leased (OCI) or directly in equity.
assets are included in the balance sheet based on their nature. Rental income is Current income tax is measured at the amount expected to be paid to the tax
recognized on straight-line basis over the lease term except where scheduled authorities in accordance with the Indian Income-tax Act. Current income tax
increase in rent compensates the Group with expected inflationary costs. relating to items recognised outside statement of profit and loss is recognised
3.14 Investment Properties either in OCI or in equity.
Investment properties are properties held to earn rentals and/or for capital Deferred income taxes are calculated using the liability method. Deferred tax
appreciation. Investment properties are measured initially at cost including liabilities are generally recognised in full for all taxable temporary differences.
transaction costs. Subsequent to initial recognition, investment properties are Deferred tax assets are recognised to the extent that it is probable that the
stated at cost less accumulated depreciation and impairment losses. Any gain underlying tax loss, unused tax credits (MAT Credit entitlement) or deductible
or loss on disposal of investment property is determined as the difference between temporary difference will be utilised against future taxable income. Unrecognised
net disposal proceeds and the carrying amount of the property and is recognised deferred tax assets are re-assessed at each reporting date and are recognised
in the Statement of Profit and Loss. to the extent that it has become probable that future taxable profits will allow the
3.15 Non-current assets held for sale deferred tax asset to be recovered.
Group classifies a non-current asset as held for sale if its carrying amount will Deferred tax assets and liabilities are measured at the tax rates that are expected
be recovered principally through a sale transaction. This condition is regarded to apply in the year when the asset is realised or the liability is settled, based on
as met only when the asset is available for immediate sale in its present condition tax rates (and tax laws) that have been enacted or substantively enacted at the
and its sale is highly probable. reporting date. Deferred tax relating to items recognised outside statement of
Non-current assets including discontinued operations, classified as held for sale profit and loss is recognised either in OCI or in equity.
are measured at the lower of the carrying amounts and fair value less costs to 3.19 Cash and Cash Equivalents
sell and presented separately in the financial statements. Once classified as
Cash and cash equivalents comprise cash on hand and demand deposits,
held for sale, the assets are not subject to depreciation or amortisation.
together with other short-term highly liquid investments (original maturity less
Any profit or loss arising from the sale or re-measurement of discontinued than 3 months) that are readily convertible into known amount of cash and are
operations is presented as part of a single line item in statement of profit and subject to an insignificant risk of changes in value.
loss.
3.20 Segment reporting
3.16 Mine Closure
The Group has 8 operating/reportable segments: the five integrated steel plants
Mine Closure Provision include the dismantling and demolition of infrastructure, and three alloy steel plants, being separate manufacturing units, have been
the removal of residual materials and the remediation of disturbed areas for considered reportable segments. In identifying these operating segments,
mines. This provision is based on all regulatory requirements and related management generally considers the Group's separately identifiable
estimated cost based on best available information. Mine closure costs are manufacturing operations representing its main operations.
provided for in the accounting period when the obligation arises based on the
net present value of the estimated future costs of restoration to be incurred Each of these operating segments is managed separately as each requires
during the life of the operation and post closure. different technologies, raw materials and other resources. All inter-segment
transfers are carried out at arm's length prices based on prices charged to
The initial close-down and restoration provision is capitalised within "Property, unrelated customers in standalone sales of identical goods or services.
Plant and Equipment". Subsequent movements in the close-down and restoration
provisions for on-going operations, including those resulting from new For management purposes, the Group uses the same measurement policies as
disturbance related to expansions or other activities qualifying for capitalisation, those used in its consolidated financial statements.
updated cost estimates, changes to the estimated lives of operations, changes In addition, corporate assets which are not directly attributable to the business
to the timing of closure activities and revisions to discount rates are also activities of any operating segment are not allocated to a segment. This primarily
capitalised within "Property, Plant and Equipment". These costs are depreciated applies to the Group's administrative head office and mining operations.
over the lives of the assets to which they relate. Any changes in closure provisions
relating to closed operations are charged /credited to the Statement of Profit and There have been no changes from prior periods in the measurement methods
Loss. The amortisation or "unwinding" of the discount applied in establishing used to determine reported segment profit or loss. No asymmetrical allocations
the provisions is charged as Finance Cost. have been applied between segments.

116
3.21 Equity and Reserves ECL is the difference between all contractual cash flows that are due to the
Share Capital represents the nominal value of shares that have been issued. Group in accordance with the contract and all the cash flows that the Group
Securities premium includes any premium received on issue of Share Capital. expects to receive.

Other components of equity include the following: Trade Receivables

• Re-measurement of defined benefit liability comprises the actuarial gain The Group applies approach as specified in Indian Accounting Standards (Ind
or loss from changes in demographic and financial assumptions and return AS) 109 Financial Instruments, which requires expected lifetime losses to be
on plan assets. recognised from initial recognition of receivables.
• Bond Redemption Reserve. Other Financial Assets
• Other transactions recorded directly in Other Comprehensive Income. For recognition of impairment loss on other financial assets and risk exposure,
the Group determines whether there has been a significant increase in the credit
• Retained earnings include all current and prior period retained profits
risk since initial recognition.
3.22 Financial Instruments
3.23 Significant Judgements, Assumptions, and Estimations in applying Accounting
Recognition, initial measurement and de-recognition Policies
Financial assets and financial liabilities are recognised and are measured initially 3.23.1 Classification of Leases
at fair value adjusted by transactions costs, except for those financial assets
which are classified at Fair Value through Profit & Loss (FVTPL) at inception. The Group enters into leasing arrangements for various assets. The classification
of the leasing arrangement as a finance lease or operating lease is based on an
Financial assets are derecognised when the contractual rights to the cash flows assessment of several factors, including, but not limited to, transfer of ownership
from the financial asset expire, or when the financial asset and all substantial of leased asset at end of lease term, lessee's option to purchase and estimated
risks and rewards are transferred. A financial liability is derecognized when it is certainty of exercise of such option, proportion of lease term to the asset's
extinguished, discharged, cancelled or expires. economic life, proportion of present value of minimum lease payments to fair
Classification and subsequent measurement of financial assets value of leased asset and extent of specialized nature of the leased asset.
For the purpose of subsequent measurement, financial assets are classified into 3.23.2 Close-down and Restoration Obligations
the following categories upon initial recognition:
Close-down and restoration costs are normal consequence of mining or
• amortised cost production, and majority of close-down and restoration expenditure are incurred
• financial assets at fair value through profit or loss (FVTPL) in the years following the closure of mine, although the ultimate cost to be
incurred is uncertain, the Group estimate their costs using current restoration
• financial assets at fair value through other comprehensive income (FVOCI) techniques.
All financial assets except for those at FVTPL are subject to review for impairment 3.23.3 Recognition of Deferred Tax Assets
at least at each reporting date.
The extent to which deferred tax assets can be recognized is based on an
Amortised cost
assessment of the probability of the Group's future taxable income against which
A financial asset is measured at amortised cost using effective interest rates if the deferred tax assets can be utilized. In addition, significant judgement is
both of the following conditions are met: required in assessing the impact of any legal or economic limits.
a) the financial asset is held within a business model whose objective is to 3.23.4 Inventories
hold financial assets in order to collect contractual cash flows; and
The Group estimates the cost of inventories taking into account the most reliable
b) the contractual terms of the financial asset give rise on specified dates to evidence, such as cost of materials and overheads considered attributable to
cash flows that are solely payments of principal and interest on the principal the production of such inventories including actual cost of production, etc.
amount outstanding. Management also estimates the net realisable values of inventories, taking into
The Group's cash and cash equivalents, trade and most other receivables fall account the most reliable evidence available at each reporting date. The future
into this category of financial instruments. realisation of these inventories may be affected by future technology or other
market-driven changes that may reduce future selling prices.
Financial assets at FVTPL
3.23.5 Defined Benefit Obligation (DBO)
Financial assets at FVTPL include financial assets that are either do not meet the
criteria for amortised cost classification or are equity instruments held for trading Employee benefit obligations are measured on the basis of actuarial assumptions
or that meet certain conditions and are designated at FVTPL upon initial which include mortality and withdrawal rates as well as assumptions concerning
recognition. All derivative financial instruments also fall into this category. Assets future developments in discount rates, medical cost trends, anticipation of future
in this category are measured at fair value with gains or losses recognized in salary increases and the inflation rate. The Group considers that the assumptions
profit or loss. The fair values of financial assets in this category are determined used to measure its obligations are appropriate. However, any changes in these
by reference to active market transactions or using a valuation technique where assumptions may have a material impact on the resulting calculations.
no active market exists.
3.23.6 Fair Value Measurements
Financial assets at FVOCI
The Group applies valuation techniques to determine the fair value of financial
FVOCI financial assets are either debt instruments that are managed under hold instruments (where active market quotes are not available) and non-financial
to collect and sell business model or are non-trading equity instruments that are assets. This involves developing estimates and assumptions consistent with
designated to this category. the market participants to price the instrument. The Group's assumptions are
FVOCI financial assets are measured at fair value. Gains and losses are recognized based on observable data as far as possible, otherwise on the best information
in other comprehensive income, except for interest and dividend income, available. Estimated fair values may vary from the actual prices that would be
impairment losses and foreign exchange differences on monetary assets, which achieved in an arm's length transaction at the reporting date.
are recognized in statement of profit or loss. 3.23.7 Provisions and Contingencies
Classification and subsequent measurement of financial liabilities The assessments undertaken in recognising provisions and contingencies have
Financial liabilities are measured subsequently at amortized cost using the been made in accordance with Indian Accounting Standards (Ind AS) 37,
effective interest method, except for financial liabilities held for trading or 'Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the
designated at FVTPL, that are carried subsequently at fair value with gains or likelihood of the contingent events is applied best judgement by management
losses recognized in profit or loss. All derivative financial instruments are regarding the probability of exposure to potential loss.
accounted for at FVTPL. 3.23.8 Mines Closure and Restoration Obligations
Embedded Derivatives Environmental liabilities and Asset Retirement Obligation (ARO): Estimation of
Derivatives embedded in non-derivative host contracts are treated as separate environmental liabilities and ARO require interpretation of scientific and legal
derivatives when they meet the definition of a derivative, their risks and data, in addition to assumptions about probability and future costs.
characteristics are not closely related to those of the host contracts and the 3.23.9 Useful lives of depreciable/ amortisable assets (tangible and intangible)
contracts are not measured at FVTPL.
Management reviews its estimate of the useful lives of depreciable/ amortisable
Impairment of Financial Assets assets at each reporting date, based on the expected utility of the assets.
In accordance with Ind AS 109, the Group applies Expected Credit Loss (ECL) Uncertainties in these estimates relate to actual normal wear and tear that may
model for measurement and recognition of impairment loss for financial assets. change the utility of plant and equipment.

117
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
4: PROPERTY, PLANT AND EQUIPMENT
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions/ Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2018 2019 2018 Year 2019 2019 2018

A. Plant, Mines & Others

Land
-Freehold land 296.75 13.33 - 310.08 0.87 (0.02) - 0.85 309.23 295.88
-Leasehold land 1275.96 26.19 4.27 1297.88 284.54 143.61 3.97 424.18 873.70 991.42
Buildings and related equipments 5299.93 55.43 151.02 5204.34 1793.57 168.15 (1.45) 1963.17 3241.17 3506.36
Plant and machinery
-Steel plant 76201.26 5840.00 156.16 81885.10 28346.52 2593.05 170.42 30769.15 51115.95 47854.74
-Others - owned 3072.63 99.35 51.74 3120.24 2011.72 121.80 53.48 2080.04 1040.20 1060.92
-Others - Leasehold (Refer note (ii)) 1616.86 41.36 - 1658.22 763.40 105.79 - 869.19 789.03 853.46
Furniture and fixtures 130.74 5.27 (0.56) 136.57 97.57 6.37 (1.34) 105.28 31.29 33.17
Vehicles 1355.52 30.64 9.13 1377.03 822.12 67.73 8.78 881.07 495.96 533.40
Office equipments 62.00 0.90 0.74 62.16 50.28 2.44 0.67 52.05 10.11 11.71
Miscellaneous articles 347.94 21.62 4.21 365.35 222.98 15.11 3.57 234.52 130.83 124.96
Roads, Bridges & Culverts 401.30 35.65 0.52 436.43 255.99 38.00 0.18 293.81 142.62 145.31
Water Supply & Sewerage 629.75 37.35 0.93 666.17 344.06 38.01 0.93 381.14 285.03 285.69
EDP Equipments 420.25 15.10 2.70 432.65 364.89 11.47 2.47 373.89 58.76 55.37

118
Railway Lines and Sidings 809.72 31.55 (2.79) 844.06 251.99 20.57 0.09 272.47 571.59 557.73
Sub-total 'A' 91920.61 6253.74 378.07 97796.28 35610.50 3332.08 241.77 38700.81 59095.47 56310.12
Figures for the previous year 81112.30 11435.50 627.19 91920.61 33077.03 2969.82 436.35 35610.50 56310.12
B. SOCIAL FACILITIES
Land
-Freehold land 10.89 - - 10.89 - - - - 10.89 10.89
-Leasehold land 10.00 - - 10.00 6.08 0.12 - 6.20 3.80 3.92
Buildings and related equipments 745.35 15.34 0.02 760.67 334.66 27.04 0.04 361.66 399.01 410.69
Plant and machinery - others 176.11 4.64 0.19 180.56 104.89 6.99 0.18 111.70 68.86 71.22
Furniture and fixtures 26.75 0.67 0.75 26.67 20.47 1.30 0.47 21.30 5.37 6.28
Vehicles 11.27 0.10 0.14 11.23 10.03 0.22 0.18 10.07 1.16 1.24
Office equipments 4.51 0.09 0.06 4.54 3.89 0.17 0.04 4.02 0.52 0.62
Miscellaneous articles 231.23 8.45 2.60 237.08 145.18 12.00 2.32 154.86 82.22 86.05
Roads, Bridges & Culverts 135.96 5.28 - 141.24 98.60 11.83 - 110.43 30.81 37.36
Water Supply & Sewerage 300.85 3.09 0.05 303.89 131.27 7.93 (0.43) 139.63 164.26 169.58
EDP equipments 11.38 0.74 1.12 11.00 9.81 0.38 1.03 9.16 1.84 1.57
Sub-total 'B' 1664.30 38.40 4.93 1697.77 864.88 67.98 3.83 929.03 768.74 799.42
Figures for the previous year 1492.67 177.50 5.87 1664.30 809.83 59.40 4.35 864.88 799.42
C. Property, plant and equipment retired from active use
Assets retired from active use 60.03 6.61 8.58 58.06 - - - - 58.06 60.03
Figures for the previous year 58.29 35.27 33.53 60.03 - - - - 60.03
Total ('A'+'B'+C') 93644.94 6298.75 391.58 99552.11 36475.38 3400.06 245.60 39629.84 59922.27 57169.57
Figures for the previous year 82663.26 11648.27 666.59 93644.94 33886.86 3029.22 440.70 36475.38 57169.57
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
4: PROPERTY, PLANT AND EQUIPMENT (CONTD.)
(` crore)

As at 31st At at 31st
March, 2019 March, 2018

Note : Allocation of Depreciation of PPE, Intangible assets and Investment property

(a) Charged to Profit & Loss Account 3385.34 3065.97

(b) Amortisation on stamp duty and registration charges-refer note 41 52.91 -

(c) Charged to expenditure during construction 4.04 4.15

3442.29 3070.12

(i) Contractual obligations

Refer note 48.1 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

(ii) Land:

(a) Includes 67,305.79 acres (68,019.40 acres as on 31st March, 2018) owned / possessed / taken on lease by the parent Company, in respect of which title/lease deeds are
pending for registration.

(b) Includes 34,484.73 acres (34,576.05 acres as on 31st March, 2018) in respect of which title is under dispute.

(c) 9,737.83 acres (9367.80 acres as on 31st March, 2018) transferred/agreed to be transferred or made available for settlement to various Joint Ventures / Central / State / Semi-
Government authorities, in respect of which conveyance deeds remain to be executed/registered.

(d) 5,832.01 acres (6187.95 acres as on 31st March, 2018) given on lease to various agencies/employees/ex-employees.

(e) Includes 4474.75 acres (4,070.09 acres as on 31st March, 2018) under unauthorised occupation.

(f) 1,770.89 acres (1,762.92 acres as on 31st March, 2018) of Land which is not in the actual possession, shown as deemed possession.

(g) ` 53.70 crore is lying under deposits (in respect of land already acquired) with the District & Sessions Judge, Bokaro during the year 2007 towards compensation payable to
land losers.

(h) Includes 21.13 acres freehold land notified for acquisition by Government of Jharkhand vide Gazette notification no. 42 & 43 dated 26th August, 2009, determining compensation
of ` 13.91 crore only for 15.62 acres. Remaining 5.51 acres are under dispute. Pending approval from Ministry of Steel, Government of India, no effect of above has been given
in the accounts.

(i) 1000.00 acres (836.00 acres as on 31st March, 2018) given to M/s. Bokaro Power Supply Co. Pvt. Ltd. (BPSCL) under right to use.

(j) Included in the land,1.8955 acres acquired by dedicated Freight Corridor Corporation of India Limited vide notification number SO 1125( E ) dated 27.04.2015.

Necessary accounting will be done on approval of acquisition by Board of Directors and determination of sale consideration.

(k) ` 0.06 crore is lying under deposits (in respect of land already acquired) with the District & Sessions Judge, Salem during the year 2013 towards compensation payable to land
losers.

(iii) Other Assets:

(a) Buildings include net block of ` 20.15 crore as on 31st March, 2019 (` 21.23 crore as on 31st March, 2018) for which conveyance deed is yet to be registered in the name of
the parent Company.

(b) Includes 6,095 (7107 as on 31st March, 2018), residential quarters/houses under unauthorised occupation.

119
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st March, 2019 As at 31st March, 2018

5: CAPITAL WORK IN PROGRESS

Steel Plants & Units 15785.16 18168.23
Township 100.95 91.56
Ore Mines and Quarries 340.08 314.32
16226.19 18574.11
Less: Provisions 236.13 15990.06 215.26 18358.85
Construction stores and spares 19.95 24.65
Less: Provision for non-moving items 3.24 16.71 3.18 21.47
Expenditure during construction pending allocation (Note 5.1) 6.84 15.11
16013.61 18395.43

5.1: EXPENDITURE DURING CONSTRUCTION PENDING ALLOCATION

Opening balance (a) 15.11 11.09

Expenditure incurred during the year

Employees' Remuneration & Benefits

Salaries & Wages 79.29 90.30

Company's contribution to provident fund 3.46 3.86

Travel concession 2.42 2.96

Welfare expenses 0.07 0.07

Gratuity 1.14 86.38 3.53 100.72

Other expenses

Technical consultants' fees & know-how 3.11 4.47

Power & Fuel 76.25 76.29

Other expenses 2.92 6.19

Interest & Finance charges 703.74 668.52

Depreciation 4.04 790.06 4.15 759.62

876.44 860.34

Less: Recoveries

Interest Earned 0.01 0.27

Liquidated damages - 0.22

Hire charges 0.29 0.45

Sundries 2.68 2.98 8.86 9.80

Net expenditure during the year (b) 873.46 850.54

Total (a)+(b) 888.57 861.63

Less : Amount allocated to Property, plant and 881.73 846.52

equipment / Capital Work-in-progress

Balance carried forward 6.84 15.11

120
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
6: INVESTMENT PROPERTIES
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions/ Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2018 2019 2018 Year 2019 2019 2018

A. BUILDINGS
Buildings 1.45 0.49 - 1.94 0.62 0.03 (0.20) 0.85 1.09 0.83
Sub-total 'A' 1.45 0.49 - 1.94 0.62 0.03 (0.20) 0.85 1.09 0.83
Figures for the previous year 1.45 - - 1.45 0.59 0.03 - 0.62 0.83

(i) Contractual obligations

There are no contractual obligation to purchase, construct or develop investment property or for its repair, maintenance or enhancement.
(ii) Amount recognised in profit and loss for investment properties
(` crore)
As at 31st At at 31st
March, 2019 March, 2018
Rental income 1.70 1.52
Direct operating expenses that generated rental income*
Direct operating expenses that did not generate rental income* - -

121
Profit from leasing of investment properties before depreciation 1.70 1.52
Depreciation 0.03 0.03
Profit from leasing of investment properties 1.67 1.49
*Direct expenses in relation to investment properties cannot be separately identified and are expected to be insignificant.
(iii) Leasing arrangements
Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Minimum lease payment receivable under non-cancellable leases
of investment property are as follows:
(` crore)
As at 31st At at 31st
March, 2019 March, 2018
Within one year 1.55 1.37
Later than one year but not later than 5 years 6.22 5.42
Later than 5 years 3.45 4.11
11.22 10.90
(iv) Fair value
Fair value of Investment properties as on 31st March, 2019 is `30.71 crore (`20.53 crore as on 31st March, 2018)
(v) Estimation of fair value
The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Group considers information from a variety
of sources including:
a) Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences.
b) Discounted cash flow projections based on reliable estimates of future cash flows.
c) Circle rate of the property as provided by State Government.
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
7: INTANGIBLE ASSETS
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION** NET BLOCK

As at Additions/ Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2018 2019 2018 Year 2019 2019 2018

A. PLANTS, MINES & OTHERS

Computer Software* 103.28 0.48 - 103.76 98.81 1.16 0.01 99.96 3.80 4.47
Mining Rights 1792.32 31.12 - 1823.44 342.17 40.94 6.73 376.38 1447.06 1450.15
Sub-total 'A' 1895.60 31.60 - 1927.20 440.98 42.10 6.74 476.34 1450.86 1454.62
Figures for the previous year 1923.52 9.62 37.54 1895.60 401.02 40.76 0.80 440.98 1454.62
B. SOCIAL FACILITIES
Computer Software* 1.08 - - 1.07 0.69 0.10 - 0.79 0.28 0.41
Sub-total 'B' 1.08 - - 1.07 0.69 0.10 - 0.79 0.28 0.41
Figures for the previous year 1.10 - 0.02 1.08 0.57 0.12 - 0.69 0.41
Total ('A'+'B') 1896.68 31.60 - 1928.27 441.67 42.20 6.74 477.13 1451.14 1455.03
Figures for the previous year 1924.62 9.62 37.56 1896.68 401.59 40.88 0.80 441.67 1455.03

*Computer software consists of capitalized development costs being an internally generated intangible assets.

122
**All ammortization changes are included within depreciation and ammortization expenses.
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
8: INVESTMENTS - NON CURRENT
No of Shares Amount (` in crore)
As at 31st As at 31st As at 31st As at 31st
March, 2019 March, 2018 March, 2019 March, 2018

Investments carried at cost

In Joint ventures (unquoted)-Defunct entities
North Bengal Dolomite Ltd (Face value-`100/share) 97,900 97,900 - 0.98
Romelt SAIL ( India ) Limited 63,000 63,000 - 0.06
Total (A) - 1.04
Investments carried at fair value through other comprehensive income
Quoted equity
HDFC Limited ( Face value - ` 2/share) 60,000 60,000 11.81 10.95
HDFC Bank Limited ( Face value - ` 2/share) 2,500 2,500 0.58 0.47
ICICI Bank Limited ( Face value - ` 2/share) 1,57,300 1,57,300 6.30 4.38
MSTC Limited 3,20,000 3,20,000 3.65 4.70
22.34 20.50
Unquoted equity
TRL Krozaki Refractories Limited 22,03,150 22,03,150 37.21 34.05
Indian Potash Limited 3,60,000 3,60,000 70.54 17.57
Haridaspur Paradeep Railway Co Ltd 50,00,000 50,00,000 5.00 5.00
Cement & Allied Products (Bihar) Limited 2 2 - -
Chemical & Fertilizer Corporation (Bihar) Limited 1 1 - -
Bhilai Power Supply Company Limited 5 5 - -
IISCO Ujjain Pipe & Foundary Company Limited 30,00,000 30,00,000 3.00 3.00
(under liquidation)#
UEC SAIL Information Technology Limited* 1,80,000 1,80,000 0.18 0.18
Bihar State Finance Corporation (Face value `100/share) 500 500 0.01 0.01
115.94 59.81
In Co-operative society
Bokaro Steel Employees' Co-operative Credit Society 1,16,500 1,16,500 0.12 0.12
Bokaro Steel City Central Consumers' Co-operative Society 250 250 0.00 0.00
NMDC Meghahatuburu Employees' Co-operative Society (Face value ` 100/share) 25 25 0.00 0.00
DSP Employees' Co-operative Society Limited (Face value ` 100/share) 1,377 1,377 0.01 0.01
Bolani Ores Employees' Consumer Co-operative society limited (Face value ` 25/share) 200 200 0.00 0.00
IISCO Employees Primary Co-operative society (Face value ` 20/share) 23,000 23,000 0.05 0.05
0.18 0.18
Total (B) 138.46 80.49
Grand total (A+B) 138.46 81.53
Provision for impairment in the value of investments 3.23 7.68
Net investment 135.23 73.85
Aggregate amount of quoted investments 22.34 20.50
(market value thereof)
Aggregate amount of unquoted investments 116.12 61.03
Aggregate amount of impairment in value of investments 3.23 7.68
135.23 73.85
All equity shares have face value `10 each unless otherwise stated.
*Entity is under liquidation, therefore, not considered as joint venture despite joint agreement between shareholders.
#Entity is under liquidation therefore not in the control of the parent Company.

123
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

9: TRADE RECEIVABLES - NON CURRENT

Considered good - Secured - -

Considered good - Unsecured - -
Receivables - credit impaired 7.83 7.83
7.83 7.83
Provision for doubtful receivables 7.83 7.83
- -
* Receivables due from directors and officers of the parent Company is nil (previous year nil)

10: LOANS - NON CURRENT

Considered good - Secured - -

Considered good - Unsecured
Security deposits (including provision of of `3.20 crore) 103.47 101.81
Loan to employees 95.45 124.53
Loans to related parties 4.90 -
Loan to others 363.36 567.18 225.14 451.48
Loans - credit impaired - -
567.18 451.48
Less : Provision for doubtful loans 3.20 3.20
563.98 448.28
* Receivables due from directors of the parent Company is nil (previous year nil)

11: OTHER FINANCIAL ASSETS - NON CURRENT

Derivative assets 172.29 76.73

Claims recoverable 7.89 7.89
Receivable - others 81.91 76.95
Receivables from employees 0.08 0.09
Loans and advances to related parties 10.53 10.53
Less: Provision for doubtful related party advances 10.53 - 2.53 8.00
Fixed deposits with maturity period more than 12 months 0.19 0.19
262.36 169.85
Less: Provision for doubtful assets 7.49 7.21
254.87 162.64

12 : DEFERRED TAX ASSETS (NET)

Tax effect of items constituting deferred tax liabilities

Diff between book and tax depreciation 10,117.50 8,996.19
Amortisation of financial assets/liabilities 17.40 28.39
Fair value adjustment through OCI 23.96 10158.86 10.46 9035.04
Tax effect of items constituting deferred tax assets
Retirement benefits 0.02 8.73
Finance lease obligations 94.69 85.64
Derivative adjustments 45.13 54.81
Unpaid taxes and duties to be allowed on payment 1121.70 1156.38
Losses available for offsetting against future taxable income 10323.46 9985.34
Others 388.80 11973.80 854.29 12145.19
Tax credit (minimum alternative tax) 1051.83 1051.83
Deferred tax (assets) /liabilities (net) 2866.77 4161.98

124
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
Deferred taxes arising from temporary differences and unused tax losses for year ended 31st March, 2019 are summarized as follows:
(` crore)

As at Recognized Recognized As at
April 1, 2018 in profit or in other March 31,
loss comprehensive 2019
income

Tax effect of items constituting deferred tax liabilities

Difference between book and tax depreciation 8996.19 1,119.73 - 10117.50
Amortisation of financial assets/liabilities 28.39 (10.99) - 17.40
Fair value adjustment through OCI 10.46 - 13.50 23.96
9035.04 1,108.74 13.50 10158.86
Tax effect of items constituting deferred tax assets
Retirement benefits 8.73 106.09 (115.32) 0.02
Finance lease obligations 85.64 9.05 94.69
Derivative adjustments 54.81 (9.68) 45.13
Unpaid taxes and duties to be allowed on payment 1156.38 (34.68) 1121.70
Losses available for offsetting against future taxable income 9985.34 338.13 10323.46
Tax credit (minimum alternative tax) 1051.83 - 1051.83
Others 854.29 (491.07) 388.80
13197.02 (82.16) (115.32) 13025.63
Deferred tax (assets) /liabilities (net) (4,161.98) 1,190.90 128.82 (2,866.77)

The Company is having accumulated business losses (Including investment allowance) of `29,542.88 crore (previous year - `28,525.26 crore) [including accumulated unabsorbed
depreciation of `21,537.70 crore (previous year - `18,823.78 crore)] and MAT credit of `1,051.83 crore as on 31st March, 2019 as per the provisions of the Income Tax Act, 1961. The
unabsorbed business losses amounting to `8,005.17 crore (previous year - `9,751.48 crore) are available for offset for maximum period of eight years from the incurrence of loss and
unused tax (MAT) credit will be available for offset within maximum period of fifteen years.
Accordingly, deferred tax asset of `2,797.33 crores on acccumulated business losses (inlcuding nil during the year ended 31st March, 2019) and MAT credit of `1,051.83 crores, has
been recognised as on 31st March, 2019 in line with IND AS 12.

(` crore)
st
As at 31 As at 31st
March, 2019 March, 2018

13: CURRENT TAX ASSETS / LIABILITIES (NET)

Current tax assets

Advance income tax (net of provision) 154.09 190.39

154.09 190.39

14: OTHER ASSETS - NON CURRENT

Advances to contractors & suppliers 456.24 341.37

Advances others 4.18 4.18
Deposit with Government authorities 736.71 646.94
Prepaid expenses 25.35 25.43
Capital advances 201.87 133.76
Less: Provision for doubtful capital advances 4.21 197.66 11.19 122.57
1420.14 1140.49
Less: Provision for doubtful other assets 63.54 61.95
1356.60 1078.54

125
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

15: INVENTORIES*

Stores & spares

Production 2804.12 2160.06
Fuel Stores 137.59 85.25
Others 25.48 24.54
2967.19 2269.85
Add: In-transit 248.67 155.02
3215.86 2424.87
Less: Provision for non moving/obsolete items 233.94 2981.92 235.45 2189.42
Raw Material
Raw material 3732.92 4612.12
Add: In-transit 2440.61 2586.51
6173.53 7198.63
Less: Provision for unusable materials 15.17 6158.36 17.64 7180.99
Finished / Semi-finished products
Finished goods 6973.49 4440.25
Work in progress 3396.56 10370.05 3213.64 7653.89
19510.33 17024.30
*Valued as per accounting policy No. 3.6

16: TRADE RECEIVABLES - CURRENT

Considered good - Secured - -

Considered good - Unsecured 4497.48 3870.99
Receivables - credit impaired 204.94 196.70
4702.42 4067.69
Provision for doubtful receivables 204.94 196.70
4497.48 3870.99
* Receivables due from directors and officers of the parent Company is nil (previous year nil)

17 (i): CASH AND CASH EQUEVALENTS

Cash and stamps on hand 0.10 0.05

Cheques in hand 31.88 77.60
Balance with Banks
Current accounts 24.78 9.43
Term deposits with original maturity upto 3 months 8.80 6.92
Term deposits as per court orders with maturity upto 3 months 0.02 33.60 - 16.35
65.58 94.00

17 (ii): OTHER BANK BALANCES

Earmarked bank balances 179.24 168.30

Unpaid dividend accounts 5.59 6.21
Fixed deposits with maturity for more than 3 months but less than 12 months 37.28 77.04
222.11 251.55

126
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

18: LOANS - CURRENT

Considered good - Secured - -

Considered good - Unsecured
Security deposits 10.72 9.23
Loan to employees 39.61 60.92
Loan to related parties 2.10 7.00
Loan to others 2.84 55.27 1.73 78.88
Loans-credit impaired - -
55.27 78.88
Less: Provision for doubtful loans 1.23 14.96
54.04 63.92
* Receivables due from directors of the parent Company is nil (previous year nil)

19: OTHER FINANCIAL ASSETS - CURRENT

Derivative assets - 47.66

Claims recoverable 769.87 716.09
Receivable - others 385.17 311.32
Receivables from employees 6.68 7.20
Amount recoverable from Gratuity Trust 259.15 -
Bills receivable 1036.75 1787.27
Advances to related parties 21.68 23.66
Less: Provision for doubtful related parties advances 13.42 8.26 13.42 10.24
2465.88 2879.78
Less Provision for doubtful assets 304.67 107.40
2161.21 2772.38

20: OTHER ASSETS - CURRENT

Gold coins in hand 0.23 0.23

Advances to contractors & suppliers 328.30 259.84
Advance others 868.14 1196.44 851.03 1110.87
Deposit with Government authorities 2832.62 2512.07
Deposits - GST 5.11 33.80
GST receivable-input service 4.53 -
GST receivable 1633.13 1813.70
TDS deducted by customers on GST 0.66 -
Prepaid expenses 31.23 24.42
Claims receivable 147.87 184.46
Export incentive receivables 74.57 45.68
5926.39 5725.23
Less: Provision for doubtful other assets 55.56 85.45
5870.83 5639.78

21: ASSETS CLASSIFIED AS HELD FOR SALE

Assets classified as held for sale 11.47 32.50

11.47 32.50
(i) On floatation of tender for sale of items of Property, Plant and Equipment, it is considered highly likely that such assets will be sold within next 12 months and such assets are treated
as ‘Assets classified as held for sale’.
(ii) Plant & machinery classified as held for sale during the reporting period was measured at the lower of its carrying amount and fair value less costs to sell at the time of the
reclassification. The fair value of the plant & machinery was determined using the comparable value approach. This is a level 3 measurement as per the fair value hierarchy set out
in fair value measurement disclosures. The key inputs under this approach is the metal price in the market.

127
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
22: EQUITY SHARE CAPITAL
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

Authorised capital

Equity shares of ` 10 each

(5,00,00,00,000 equity shares of `10 each) 5000.00 5000.00

Issued and subscribed capital & fully paid-up

(4,13,05,25,289 equity shares of ` 10 each fully paid up) 4130.53 4130.53

Reconciliation of equity shares outstanding at the beginning and at the end of the year

Particulars As at 31st As at 31st

March, 2019 March, 2018

Numbers Amount Numbers Amount

(` in crore) (` in crore)

Equity shares with voting rights

Balance at the beginning of the year 4130407654 4130.41 4130407654 4130.41

Shares converted into shares with/without(-) voting Rights during the year 1200 - - -

Shares bought back during the year

Balance at the end of the year# 4130408854 4130.41 4130407654 4130.41

Equity shares without voting rights *

Balance at the beginning of the year 117635 0.12 117635 0.12

Shares Issued during the year

Shares converted into shares with/without(-) voting Rights during the year -1200 - - -

Balance at the end of the year 116435 0.12 117635 0.12

Total Equity shares outstanding 4130525289 4130.53 4130525289 4130.53

i) *Represented by current holding of 117635 shares in Global Depository Receipt (GDR) issued in 1996 @ US $ 29.55 each for an aggregate amount of US $ 125 million.
ii) #Includes 1961727 shares (previous year 1731709 shares) transferred to IEPF authority on which the voting rights are frozen.
iii) All shares rank equally with regard to the repayment of capital in the event of liquidation of the parent Company.

iv) Details of the shareholders holding more than 5% of the shares in the parent Company

Name of Shareholder As at 31st As at 31st

March, 2019 March, 2018

No. of Shares % of Holding No. of Shares % of Holding

held held

President of India 3097767449 75.00 3097767449 75.00

LIC of India 396663164 9.60 395451358 9.57

v) The parent Company has neither issued bonus shares nor has bought back any shares during the last 5 years.

128
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
23: OTHER EQUITY
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

Reserves & Surplus

Capital Reserve
Opening balance 510.92 504.33
Additions during the year 1.02 6.59
Less: Utilisation during the year - 511.94 - 510.92
Securities Premium
Opening balance 235.10 235.10
Changes during the year - 235.10 - 235.10
Bond Redemption Reserve
Opening balance 2340.69 1973.64
Transfer from retained earnings 383.55 606.80
Transfer to retained earnings 730.10 1994.14 239.75 2340.69
General Reserve
Opening balance 5104.14 5102.76
Additions during the year 2.18 1.38
Less: Utilisation during the year - 5106.32 - 5104.14
Retained Earnings
Opening balance 24561.81 25041.72
Add: Net Profit/(Loss) for the year 2,348.71 (281.40)
Add: Other comprehensive Income/(Loss) 214.69 177.52
Add: Transfer from Bond Redemption Reserve 730.10 239.75
Less: Transfer to Bond Redemption Reserve 383.55 606.80
Less: Equity dividend 4.26 6.31
Less: Tax on Equity dividend 0.88 1.28
Transaction with non-controlling interest 0.01 (0.01)
Less: Transfer to General Reserve 2.18 27464.45 1.38 24561.81
Other Comprehensive Income
Equity Instruments through Other Comprehensive Income
Opening balance 11.59 2.80
Change in fair value of FVOCI equity instruments 44.46 56.05 8.79 11.59
Share in Other Comprehensive Income of equity accounted investees
Opening balance 51.87 51.38
Change in fair value of FVOCI equity instruments 95.75 147.62 0.49 51.87
Total other equity 35515.62 32816.12

Nature and purpose of other reserves

Capital reserve
Capital reserve is created out of the capital profit, it is created out of the profit earned from some specific transactions of capital nature. Capital reserve is not available for the distribution
to the shareholders.

Securities premium reserve

Securities premium reserve represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

Bond redemption reserve

The Group is required to create bond redemption reserve as per the provisions of Companies Act, 2013 out of the profits which are available for distribution of dividends. The reserve is
maintained till the redemption of bonds.

Other Comprehensive Income (OCI) reserve

The Group has opted to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI
equity investments reserve within equity. The Group transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

129
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

24. BORROWINGS - NON CURRENT

SECURED
Redeemable Non-Convertible Bonds
Rate of Interest Maturity Date Call/Put option (yr) Security
reference
9.35% 9-Sep-2026 12/nil (a) 455.00 455.00
9.00% 14-Oct-2024 (a) 1000.00 1000.00
8.75% 15-Sep-2024 ( b,d ) 50.00 100.00
8.70% 25-Aug-2024 (a) 300.00 300.00
8.30% 3-Aug-2023 (a) 800.00 800.00
8.30% 1-Aug-2023 (a) 1200.00 1200.00
8.35% 19-Nov-2022 (a) 1185.00 1185.00
9.30% 23-Aug-2021 (a) 400.00 400.00
8.55% 11-Aug-2021 (a) 700.00 700.00
8.80% 26-Oct-2020 ( b,c ) 84.00 98.00
8.27% 25-Aug-2020 (a) 265.00 265.00
9.30% 25-May-2020 ( a,i ) 216.00 288.00
8.72% 30-Apr-2020 (a) 660.00 660.00
8.75% 23-Apr-2020 (a) 545.00 545.00
8.65% 1-Feb-2020 5/nil (a) - 242.00
8.30% 21-Jan-2020 (a) - 500.00
8.65% 30-Dec-2019 (a) - 450.00
8.50% 7-Dec-2019 (a) - 120.00
8.60% 19-Nov-2019 (a) - 335.00
8.80% 22-Jun-2019 (a) - 825.00
7.70% 11-May-2019 5/5 (a) - 25.00
8.90% 1-May-2019 5/nil (b) - 950.00
Total Bonds 7860.00 11443.00
Term Loans from banks
Rupee loans (h) 18681.00 14156.00
Foreign currency loans (h) 2391.57 2247.26
28932.57 27846.26
UNSECURED
Foreign currency loan
1 KFW, Germany (e) 322.56 358.48
2 Natexis Banque (f) 12.32 15.01
Steel development fund (g) 204.16 204.16
539.04 577.65
Long term maturities of finance lease obligations 1331.05 1353.25
Total Non Current Loans 30802.66 29777.16
No loans have been guaranteed by the directors and others.
There is no default as on the balance sheet date in repayment of borrowings and interest thereon.
All bonds are repayable on the maturity date unless otherwise stated.
Bonds are secured, in respect of respective facilities by way of :
a) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad, Gujarat and Group's Plant & Machinery, including the land
on which it stands, pertaining to IISCO Steel Plant (ISP).
b) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad, Gujarat and Group's Plant & Machinery, including the land
on which it stands, pertaining to Durgapur Steel Plant.( DSP ).
c) Redeemable in 12 equal yearly instalments of ` 14 crore each starting w.e.f 26th October, 2014. Instalment payable on 26th Oct, 2019 has been shown in Other Current Liabilities.
d) Redeemable in 3 equal instalments of ` 50 crore each on 15th September of 2014, 2019 and 2024.
e) The soft basis of the loan was drawn in 3 tranches stated as 1(a), 1(b) and 1( c) at an interest rate of 8.75% p.a. The Interest on 1(a) is 0.75% p.a and balance 8% is towards meeting Exchange fluctuation (4%)
and Pollution control schemes (4%). In case of 1 (b) the Interest is 0.75% p.a and balance 8.0% p.a is towards periphery development. The Interest on 1(c) is 3.66% p.a and the balance 5.09% p.a is towards
meeting periphery development. The principal and interest is repayable half yearly. The loan is guaranteed by Government of India.
f) The loan is repayable by 2030. The principal and interest is paid half yearly, guaranteed by Government of India.
g) Terms of Repayment is to be decided by SDF management Committee.
h) Secured by charges ranking pari-pasu on the present and future movable plant and machinery of BSL & BSP to the extent of loan. SBIECB loan is repayable in 4 equal installments at the end of 4th, 5th, 6th and 7th
from the first draw-down i.e. 25th Sept 2017.
i) Redeemable in 5 equal yearly instalments starting w.e.f 25th May, 2018. Installment payable on 25th May, 2019 has been shown in current liabilities.

130
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

25: TRADE PAYABLES - NON CURRENT

Due to micro, small and medium enterprise - -

Amount payable to contractors/suppliers/others 6.82 6.38
6.82 6.38

26: OTHER FINANCIAL LIABILITIES - NON CURRENT

Employees related dues 535.71 430.68

Interest Accrued but not due on borrowings 559.63 551.46
Other payables 235.28 197.22
1330.62 1179.36

27: PROVISIONS - NON CURRENT

Provision for gratuity 0.07 -

Provision for accrued leave liability 2683.08 2477.94
Provision for post retirement medical & settlement benefits 962.76 974.81
Provision for long term service award 18.39 20.90
Provision for mines closure 75.01 61.64
Other provisions 556.33 439.13
4295.64 3974.42

28: OTHER LIABILITIES - NON CURRENT

Deferred Income* 253.19 138.33

253.19 138.33
*Deferred income includes:
(a) award conferred by the Prime Minister of India to the Bhilai Steel Plant as best integrated steel plant in India and the earnings from the fund are utilised for the welfare of the
employees in Bhilai.
(b) Central Government grant of `105.75 crore was received during 2018-19 against sanctioned budgetary provision of `295.79 crore for the purpose of upgradation of Ispat General
Hospital, Rourkela to a Super Speciality Hospital.

29. BORROWINGS - CURRENT

Secured
Repayable on demand
From banks 3490.26 2334.39
Other loans and advances
From Banks - -
Unsecured
Other loans 2900.00 2950.00
Commercial paper 4240.96 3961.88
Foreign currency loans - 2998.05
10631.22 12244.32

1. Security disclosure for the outstanding short term borrowings as on 31st March, 2019:
Borrowings from banks are secured, in respect of respective facilities by way of :
(i) Hypothecation of all current assets

131
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

As at 31st As at 31st
March, 2019 March, 2018

30: TRADE PAYABLES - CURRENT

Due to micro, small and medium enterprises (refer note 48.2) 67.45 48.22
Amount payable to related parties 174.47 9.30
Amount payable to contractors/suppliers/others 6983.32 7469.12
7225.24 7526.64

31: OTHER FINANCIAL LIABILITIES - CURRENT

Employee related dues 156.82 159.95

Interest accrued but not due on borrowings 756.89 920.54
Interest accrued and due on steel development fund loans 152.00 152.00
Other liabilities-debtors banking arrangement 191.09 325.45
Derivative liability 4.54 65.24
Current maturities of long term debts 3607.71 3271.71
Current maturities of finance lease obligations 128.45 115.53
Unclaimed matured deposits and interest accrued thereon 1.01 1.01
Security deposits 1488.38 1325.77
Less: Investments received as security deposit - 1488.38 - 1325.77
Unpaid dividends 5.59 6.21
Payable for capital works 3605.29 3708.94
Other payables 4640.32 4137.97
14738.09 14190.32

32: OTHER LIABILITIES - CURRENT

Income received in advance from customers 1456.63 1882.56

Income received in advance - others 94.72 112.80
Deferred Income* 13.46 11.90
GST payable 2158.00 2135.74
Liab for interest on GST 0.76 -
TDS deducted from suppliers on GST 21.32 -
Other payables 2962.37 3001.75
6707.26 7144.75
*Deferred income inlcudes award conferred by the Prime Minister of India to the Bhilai Steel Plant as best integrated steel plant in India and the earnings from the fund are utilised for the
welfare of the employees in Bhilai.

33: PROVISIONS - CURRENT

Provision for gratuity - 31.12

Provision for accrued leave liability 285.51 309.04
Provision for post retirement medical & settlement benefits 107.93 105.60
Provision for long term service award 2.88 2.03
Provision for pollution control 39.48 40.30
Provision for foreign exchange fluctuation 12.78 -
Provision for wage revision 1247.52 1216.24
Provision for mine afforestation/ restoration etc. 344.33 319.25
Other provisions 274.97 289.05
2315.40 2312.63

33A: CURRENT TAX LIABILITIES (NET)

Opening Balance - 6.66

Add: Provision during the year - 7.06
Less: Amount paid/transferred during the year - 13.72
Less: Provision written back during the year - - - -
- -

132
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

34. REVENUE FROM OPERATIONS

Sale of products
Domestic 63298.26 55974.82
Exports 2872.64 2243.70
Export incentives 102.42 82.48
Sub Total (a) 66273.32 58301.00
Sale of Services
Service charges 28.61 23.56
Sub Total (b) 28.61 23.56
Other Operating Revenues
Social amenities-recoveries 335.97 337.82
Sale of empties etc. 54.51 80.00
Sundries 281.17 223.78
Sub Total (c) 671.65 641.60
Total ( a+b+c ) 66973.58 58966.16
Desegregation of Revenue
Nature of Goods and Services
The Company is engaged in the manufacturing of Iron and Steel products and generate revenues from sale of Iron and Steel products and the same is only the reportable segment of the
Company.
(1) Primary Geographical Markets
Within India 63298.26 55974.82
Outside India 2975.06 2326.18
Total 66273.32 58301.00
(2) Major Products
Iron and steel 62541.86 55481.04
Other Secondary and By-products 3731.46 2819.96
Total 66273.32 58301.00
Contract Balances
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers receivables which are included in 'Trade Receivables'.
Trade receivables 4497.48 3870.99
Contract assets - -
Contract liabilities 1456.63 1882.56

35. OTHER INCOME

Interest income
Loans & advances to other companies 0.79 0.78
Customers 133.92 101.78
Employees 13.36 16.75
Bank deposits 9.70 9.79
Others 39.58 41.94
Sub Total (a) 197.35 171.04
Dividend income
Dividend from subsidiaries - -
Dividend from investments 1.73 1.85
(includes dividend from investments carried at fair value through OCI)
Sub Total (b) 1.73 1.85
Other non-operating Income
Subsidy, relief and concession 1.10 6.12
Grant-in-aid 0.62 0.54
Provisions no longer required written back 87.65 90.64
Write back of other liabilities 59.21 81.62
Liquidated damages 101.37 20.02
Others 45.49 43.36
Sub Total (c) 295.44 242.30
Total (a+b+c) 494.52 415.19

133
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

36: COST OF MATERIALS CONSUMED

Iron ore 5095.08 3818.79

Coal 26041.91 21445.07
Coke 31.32 31.63
Limestone 1355.12 1232.17
Dolomite 591.92 474.80
Ferro manganese 425.17 337.61
Ferro silicon 236.85 201.73
Silico manganese 1323.69 1193.85
Zinc 172.30 176.84
Aluminium 315.65 242.58
Others 1928.78 1358.94
37517.79 30514.01
Less : Inter account adjustments 5114.82 3776.11
32402.97 26737.90

37: CHANGES IN INVENTORIES OF FINISHED GOODS AND WORK-IN-PROGRESS

Opening stock
Finished goods 4440.25 5829.61
Work in progress 3213.64 3990.99
7653.89 9820.60
Less: Closing stock
Finished goods 6973.49 4440.25
Work in progress 3396.56 3213.64
10370.05 7653.89
(2,716.16) 2166.71
Less : Excise duty on accretion (-) /depletion to stock - 1027.89
(2,716.16) 1138.82

38: EMPLOYEE BENEFITS EXPENSE*

Salaries & wages 6690.32 6474.19

Leave encashment 448.20 357.93
Company's contribution to provident & other funds 902.52 754.60
Travel concession 33.54 61.56
Welfare expenses 526.66 356.32
Gratuity 247.86 861.27
8849.10 8865.87
*Expenditure on employees's remuneration and benefits not included above and charged to:
Expenditure during construction 86.38 100.72
For descriptive notes on disclosure of defined benefit obligation, refer note 50.1

134
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

39: FINANCE COSTS

Interest Cost
Foreign currency loans* 169.24 526.99
Non convertible bonds 834.39 915.78
Bank borrowings - working capital 52.08 42.97
Steel development fund loans 4.94 4.08
Others 2075.14 1319.53
Other borrowing costs 19.13 13.40
3154.92 2822.75
*Including foreign exchange fluctuations loss of `41.69 crore (previous year: `120.04 crore gain)
Expenditure on Interest & Finance charges not included above and charged to Expenditure during Construction:
Foreign currency loans 125.97 94.89
Non convertible bonds 210.97 365.43
Steel development fund loans - Interest 3.24 4.09
Others 363.56 204.11
703.74 668.52

40: OTHER EXPENSES

Consumption of stores & spares

Consumption 4244.20 3490.03

Less: Departmentally manufactured stores 925.98 735.15

Less: Finished products internally consumed as stores and spares 526.62 2791.60 473.26 2281.62

Repairs & maintenance

Buildings 204.81 194.71

Plant & machinery 1004.25 821.88

Others 265.82 1474.88 228.77 1245.36

Handling expenses

Raw material 480.21 428.15

Scrap recovery 335.21 815.42 282.30 710.45

Remuneration to auditors

Audit fees 2.13 1.80

Tax audit fees 0.64 0.51

In other services 1.30 1.16

Out of pocket expenses 0.84 4.91 0.68 4.15

Provisions

Doubtful debts, loans and advances 65.12 85.42

Investments - 13.08

Stores, spares and sundries 177.52 242.64 117.70 216.20

Power and fuel 6060.16 5815.89

Freight outward 2618.25 2247.29

Royalty and cess 2047.04 1271.58

135
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)

Year ended Year ended

31st March, 2019 31st March, 2018

40: OTHER EXPENSES (CONTD.)

Conversion charges 306.43 306.08

Excise duty on inter-plant transfer/internal consumption 0.09 63.76
Demurrage & wharfage 49.79 38.82
Water charges & cess on water pollution 129.29 115.82
Insurance 27.60 24.99
Postage, telegram & telephone 19.71 16.84
Printing & stationery 9.08 8.28
Rates & taxes 46.45 58.64
Rent 82.50 80.61
Security expenses 593.79 514.24
Travelling expenses 160.23 157.72
Expenditure on temporary suspended mines (refer note - 49.13) 15.94 82.07
Training expenses 44.28 42.08
Expenditure on corporate social responsibility (refer note - 49.6) 31.74 26.34
Foreign exchange fluctuations (net) 163.59 3.74
Loss on sale/scrapping of fixed assets (net) 45.27 72.80
Cost audit fee and reimbursement of expenses 0.10 0.05
Write-offs - Miscellaneous 0.10 2.61
Handling expenses - finished goods 175.62 188.31
Commission to selling agents 14.34 6.53
Export sales expenses 37.36 47.01
Miscellaneous 667.96 531.94
18676.16 16181.82

41: EXCEPTIONAL ITEMS

Volantary retirement compensation 100.72 254.20

Write back of pension liabilities - (458.16)
Provision for illegal mining - 340.72
Reversal of Distrct Mineral Fund - (261.76)
Reversal of wages and salary - (110.82)
Provision for surrender of coal blocks - 209.39
Entry Tax 92.23 -
Royalty Difference 143.54 -
Amortisation on stamp duty and registration charges 52.91 -
389.40 (26.43)

41A: EARNING PER SHARE

Profit for the year (` crore) 2348.71 (281.40)

Number of equity shares 4130525289 4,13,05,25,289
Earning per share - basic and diluted (`) 5.69 (0.68)
Face value per equity share (`) 10.00 10.00

136
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
42. FINANCIAL INSTRUMENTS
i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are categorized into three levels of a fair value hierarchy. The three levels are
defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market
data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
ii) Financial assets and liabilities measured at fair value - recurring fair value measurements (` crore)
st
As at 31 March, 2019 Level 1 Level 2 Level 3 Total
Financial assets
Financial instruments at FVTPL
Derivative financial assets 172.29 172.29
Investments at FVOCI
Quoted 22.34 22.34
Unquoted 116.12 116.12

Total financial assets 22.34 172.29 116.12 310.75

Financial liabilities
Financial instruments at FVTPL
Derivative liability 4.54 4.54

Total financial liabilities - 4.54 - 4.54

Financial assets and liabilities measured at fair value - recurring fair value measurements (` crore)
st
As at 31 March, 2018 Level 1 Level 2 Level 3 Total

Financial assets
Financial instruments at FVTPL
Derivative financial assets 124.39 124.39
Investments at FVOCI
Quoted 15.80 15.80
Unquoted 64.69 64.69

Total financial assets 15.80 124.39 64.69 204.88

Financial liabilities
Financial instruments at FVTPL
Derivative liability 65.24 65.24

Total financial liabilities - 65.24 - 65.24

iii) Financial assets and liabilities - for which fair values are disclosed (` crore)
st st
Level As at 31 March, 2019 As at 31 March, 2018

Carrying value Fair Value Carrying value Fair Value

Financial assets
Loans Level-3 618.02 631.60 515.38 545.27
Derivative financial assets Level-2 172.29 172.29 124.39 124.39
Equity instruments
Quoted Level-1 22.34 22.34 15.80 15.80
Unquoted Level-3 116.12 116.12 64.69 64.69

Total financial assets 928.77 942.35 720.26 750.15

Financial liabilities
Borrowings Level-3 46677.65 46998.97 47358.17 47714.31
Other payables Level-3 10820.40 10862.57 9967.75 10008.93
Derivative liability Level-2 4.54 4.54 65.24 65.24

Total financial liabilities 57502.59 57866.08 57391.16 57788.48

137
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(iv) Valuation process and technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) Fair value of interest swap is determined based on dealer or counterparty quotes for similar instruments
(b) Fair value of forward foreign exchange contract and principal swap is determined using forward rate at balance sheet date.
(c) The carrying value of borrowings bearing variable interest rate are considered to be representative of their fair value.
(d) The carrying value of financial assets and liabilities with maturities less than 12 months are considered to be representative of their fair value.
(e) Fair value of fixed interest rate financial assets and liabilities carried at amortised cost (including finance lease obligations) is determined by discounting the cash flows
using a discount rate equevalent to market interest rate applicable to similar assets and liabilities as at the balance sheet date.
(v) Unquoted investments:
Fair value estimates of unquoted equity investments are included in level-3 and are based on information relating to value of investee Group's net assets. For investments in co-
operative societies, the Group has determined that cost is appropriate estimate of fair value, therefore, there have been no changes on account of fair values.
vi) The following table presents the changes in value of financial instruments measured at fair value using level 3 inputs: (` crore)

Unlisted equity securities

As at 31st March, 2017 59.43
Gains/losses recognised in other comprehensive income 5.26
As at 31st March, 2018 64.69
Gains/losses recognised in other comprehensive income 51.43
As at 31st March, 2019 116.12

43. FINANCIAL RISK MANAGEMENT

i) Financial instruments by category (` crore)
As at 31st March, 2019 As at 31st March, 2018
Particulars FVTPL FVOCI Amortised FVTPL FVOCI Amortised
cost cost
Financial assets
Investments
Equity instruments 138.46 80.49
Trade receivables 4497.48 3870.99
Cash and cash equivalents 65.58 94.00
Other Bank Balances 222.11 251.55
Loans 618.02 515.38
Derivative financial assets 172.29 124.39
Other receivables 2243.79 2825.89
Total 172.29 138.46 7646.98 124.39 80.49 7557.81
Financial liabilities
Borrowings 46677.65 47358.17
Trade payable 7232.06 7533.02
Derivative Liability 4.54 65.24
Other payables 10820.40 9967.75
Total 4.54 - 64730.11 65.24 - 64858.94

ii) Risk Management

The Group, its Joint Ventures & Associate is exposed to various risk in relation to financial instruments. The Group's, its Joint Ventures' & Associate's financial asset and liabilities
are by category are summarised in note 43(i). The main types of risks are market risk, credit risk and liquidity risk. The Group's, its Joint Ventures' & Associate's risk management
is co-ordinated at its headquarters, in close co-operation with the board of directors, and focuses on actively securing the Group's, its Joint Ventures' & Associate's short to
medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The Group, its Joint
Ventures & Associate does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the
Group, its Joint Ventures & Associate is exposed are described below.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the parent Comapny. The Group, its Joint Ventures & Associate is exposed to this risk for various financial
instruments, for example by granting loans and receivables to customers, placing deposits, etc. The Group's, its Joint Venture’s & Associate's maximum exposure to credit risk is
limited to the carrying amount of following types financial assets.
-Cash and cash equivalents
-Derivative financial instruments
-Trade receivables
-Other financial assets measured at amortized cost
The Group, its Joint Ventures & Associate continuously monitors defaults of customers and other counterparties, identified either individually or by the Group, its Joint Ventures &
Associate and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties
are obtained and used. The Group's, its Joint Ventures' & Associate's policy is to deal only with creditworthy counterparties.

138
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
a) Credit risk management
Cash and cash equivalent
Credit risk related to cash and cash equivalents is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the
country.
Derivative financial instruments
Credit risk related to derivative financial instruments is also managed by only entering into such arrangement with highly rated banks or financial institutions as counterparties.
The Group, its Joint Ventures & Associate diversifies its holdings with multiple counterparties.
Trade receivables
Credit risk related to trade receivables are mitigated by taking bank guarantees from customers where credit risk is high. The Group, its Joint Ventures & Associate closely
monitors the credit-worthiness of the debtors and only sells goods to credit-worthy parties. The Group's, its Joint Ventures' & Associate's internal systems are configured to
define credit limits of customers, thereby limiting the credit risk to pre-calculated amounts.
Other financial assets measured at amortized cost
Other financial assets measured at amortized cost includes loans and advances to employees and others. Credit risk related to these other financial assets is managed by
monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
b) Expected credit losses
Group, its Joint Ventures & Associate provides expected credit losses based on the following
Trade receivables
The Group, its Joint Ventures & Associate recognizes lifetime expected credit losses on trade receivables using a simplified approach and uses historical information to arrive
at loss percentage relevant to each category of trade receivables:
(` crore)
Ageing (As at 31st March, 2019) 0-3 months 3-12 months 12-24 months 24-36 months more than Total
36 months
Gross carrying amount 3831.02 572.15 124.52 43.46 131.27 4702.42
Expected loss rate 1.77% 0.39% 5.36% 0.05% 97.55% 4.36%
Expected credit loss provision 67.96 2.23 6.68 0.02 128.05 204.94
Carrying amount of trade receivables 3763.06 569.92 117.84 43.44 3.22 4497.48
(Net of impairment)

Ageing (As at 31st March, 2018) 0-3 months 3-12 months 12-24 months 24-36 months more than Total
36 months
Gross carrying amount 3005.30 697.14 92.93 74.74 197.58 4067.69
Expected loss rate 0.25% 0.38% 9.49% 2.81% 88.88% 4.84%
Expected credit loss provision 7.52 2.66 8.82 2.10 175.60 196.70
Carrying amount of trade receivables 2997.78 694.48 84.11 72.64 21.98 3870.99
(Net of impairment)

Reconciliation of Expected credit loss provision (` crore)

Particulars
As at 31st March, 2017 181.89
Changes in provision 14.81
As at 31st March, 2018 196.70
Changes in provision 8.24
As at 31st March, 2019 204.94

Other financial assets measured at amortized cost

Group, its Joint Ventures & Associate provides for expected credit losses on "loans advances and other than trade receivables" by assessing individual financial instruments for
expectation of any credit losses. Since this category includes loans and receivables of varied natures and purpose, there is no trend that the Group, its Joint Ventures & Associate
can draws to apply consistently to entire population For such financial assets, the Group's, its Joint Ventures' & Associate's policy is to provides for 12 month expected credit losses
upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Group, its Joint Ventures & Associate does not have any expected
loss based impairment recognised on such assets considering their low credit risk nature, though incurred loss provisions are disclosed under each sub-category of such financial
assets.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit
facilities to meet obligations when due. Due to the nature of the business, the Group, its Joint Ventures & Associate maintains flexibility in funding by maintaining availability under
committed facilities. Management monitors rolling forecasts of the Group's, its Joint Ventures' & Associate's liquidity position and cash and cash equivalents on the basis of expected
cash flows. The Group, its Joint Ventures & Associate takes into account the liquidity of the market in which the entity operates. In addition, the Group's, its Joint Ventures' &
Associate's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance
sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Maturities of financial liabilities
The tables below analyse the Group's, its Joint Ventures' & Associate's financial liabilities into relevant maturity grouping based on their contractual maturities for all non-derivative
financial liabilities and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact
of discounting is not significant.

139
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)
st
Contractual maturities of financial liabilities as at 31 March, 2019 Less than 1-2 year 2-3 year More than Total
1 year 3 years
Non-derivatives
Borrowings* 17626.05 4901.99 5955.80 27521.22 56005.06
Trade payable 7225.24 0.00 0.00 6.82 7232.06
Other payables 10757.22 121.00 112.53 1427.51 12418.26

Total 35608.51 5022.99 6068.33 28955.55 75655.38

Derivatives
Derivative liability (Net Settled) 4.54 4.54

Total 4.54 - - - 4.54

Contractual maturities of financial liabilities as at 31st March, 2018 Less than 1-2 year 2-3 year More than Total
1 year 3 years
Non-derivatives
Borrowings* 18348.05 5719.16 4611.01 27190.55 55868.77
Trade payable 7526.64 0.64 0.85 4.89 7533.02
Other payables 10392.85 112.45 96.56 1270.94 11872.80

Total 36267.54 5832.25 4708.42 28466.38 75274.59

Derivatives
Derivative liability 65.24 65.24

Total 65.24 - - - 65.24

* borrowings excludes finance lease obligations, refer note 49.9(b) for disclosure of maturity profile of finance lease obligations.

C) Market Risk
a) Foreign currency risk
Most of the Group's, its Joint Ventures' & Associate's transactions are carried out in INR. Exposures to currency exchange rates arise from the Group's, its Joint Ventures & Associate
overseas borrowing arrangements, which are primarily denominated in US dollars (USD).
To mitigate the Group's, its Joint Ventures' & Associate's exposure to foreign currency risk, non-INR cash flows are monitored and forward exchange contracts are entered into in
accordance with the Group's, its Joint Ventures' & Associate's risk management policies. Generally, the Group's, its Joint Ventures' & Associate's risk management procedures
distinguish short-term foreign currency cash flows (due within 6 months) from longer-term cash flows (due after 6 months). Where the amounts to be paid and received in a specific
currency are expected to largely offset one another, no further hedging activity is undertaken. Forward exchange contracts are mainly entered into for significant long-term foreign
currency exposures that are not expected to be offset by other same-currency transactions.
Foreign currency risk exposure:
The Group's, its Joint Ventures' & Associate's significant exposures to foreign currency risk at the end of the reporting period expressed in ` crore are as follows:
Particulars As at 31st March, 2019 As at 31st March, 2018
USD Euro USD Euro
Financial assets
Trade receivables 42.62 1.89
Cash and cash equivalents
Other Bank Balances
Loans
Derivative financial assets (Gross amounts, to hedge borrowings) 3343.41
Other receivables

Net exposure to foreign currency risk (assets) 42.62 - 3345.30 -

Financial liabilities
Borrowings 2406.58 344.58 3619.36 327.06
Trade payable 3460.07 366.69 90.63 330.72
Derivative Liability 4.54 - 29.35
Other payables 20.34 191.77 68.30 137.27

Net exposure to foreign currency risk (liabilities) 5891.53 903.04 3807.64 795.05

Sensitivity
The following table illustrates the sensitivity of profit and equity in regard to the Group's, its Joint Ventures' & Associate's financial assets and financial liabilities and the USD/INR
exchange rate and EUR/INR exchange rate ‘all other things being equal’. It assumes a +/- 6.82% change of the INR/USD exchange rate for the year ended at 31 March, 2019
(2018:4.24%). A +/- 7.26% change is considered for the INR/EUR exchange rate (2018: 6.90%). Both of these percentages have been determined based on the average market
volatility in exchange rates in the previous 12 months. The sensitivity analysis is based on the Group's, its Joint Ventures' & Associate's foreign currency financial instruments held
at each reporting date and also takes into account forward exchange contracts that offset effects from changes in currency exchange rates.

140
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(` crore)
st st
Particulars As at 31 March, 2019 As at 31 March, 2018
USD sensitivity
INR/USD- increase by 6.82% (31 March 2019) (398.90)
INR/USD- decrease by 6.82% (31 March 2019) 398.90
INR/USD- increase by 4.24% (31 March 2018) (19.60)
INR/USD- decrease by 4.24% (31 March 2018) 19.60
Euro sensitivity
INR/EUR- increase by 7.26% (31 March 2019) (65.56)
INR/EUR- decrease by 7.26% (31 March 2019) 65.56
INR/EUR- increase by 6.90% (31 March 2018) (54.86)
INR/EUR- decrease by 6.90% (31 March 2018) 54.86

b) Interest rate risk

The Group's, its Joint Ventures' & Associate's policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term borrowings are therefore usually at
fixed rates. At 31 March, 2019, the Group, its Joint Ventures & Associate is exposed to changes in market interest rates through bank borrowings at variable interest rates. Other
borrowings are at fixed interest rates. The Group's investments in bonds all pay fixed interest rates. The exposure to interest rates for the Group's, its Joint Ventures' & Associate's
money market funds is considered immaterial. The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of +/- 1% (2018: +/
- 1%). These changes are considered to be reasonably possible based on observation of current market conditions. The calculations are based on a change in the average market
interest rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are held constant.
i) Liabilities
The Group's, its Joint Ventures' & Associate's policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31st March, 2019, the Group, its Joint Ventures
& Associate is exposed to changes in market interest rates through bank borrowings at variable interest rates.
Interest rate risk exposure
Below is the overall exposure of the Group to interest rate risk: (` crore)
st st
Particulars As at 31 March, 2019 As at 31 March, 2018
Variable rate borrowing (excluding exposures offset by derivatives) - 2998.05
Fixed rate borrowing 46677.65 44360.12

Total borrowings 46677.65 47358.17

Sensitivity
Below is the sensitivity of profit or loss and equity changes in interest rates. (` crore)

Particulars As at 31st March, 2019 As at 31st March, 2018

Interest sensitivity
Interest rates-increase by 100 basis points 466.78 473.58
Interest rates-decrease by 100 basis points -466.78 -473.58

ii) Assets
The Group's, its Joint Ventures' & Associate's fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as
defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
Interest rate risk exposure
Below is the overall exposure of the financial assets: (` crore)

Particulars As at 31st March, 2019 As at 31st March, 2018

Variable rate deposits/ loans - -
Fixed rate deposits/ loans 840.13 766.93

Total deposits 840.13 766.93

c) Price risk
Exposure
The Group is exposed to other price risk in respect of its investment shares of other companies (see Note 8). The Group does not consider changes in value of its investments in
shares as insignificant, therefore is not exposed to price risks on exposures outstanding on the balance sheet date.

141
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
44. CAPITAL MANAGEMENT
The Group's, its Joint Ventures' & Associate's capital management objectives are
- to ensure the Group's, its Joint Ventures' & Associate's ability to continue as a going concern
- to provide an adequate return to shareholders
The Group monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
Management assesses the Group's, its Joint Ventures' & Associate's capital requirements in order to maintain an efficient overall financing structure while avoiding excessive
leverage. This takes into account the subordination levels of the Group's, its Joint Ventures' & Associate's various classes of debt. The Group, its Joint Ventures & Associate manages
the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust
the capital structure, the Group, its Joint Ventures & Associate may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell
assets to reduce debt.
(` crore)
st st
Particulars As at 31 March, 2019 As at 31 March, 2018
Net debts 46389.96 47012.62
Total equity 39646.15 36946.65

Net debt to equity ratio 1.17 1.27

Dividends (SAIL)
(i) Equity shares
Final dividend for the year ended 31st March, 2019 @ 5% on the paid up Share Capital 206.53 Nil
(ii) Dividends not recognised at the end of the reporting period 206.53 Nil

44A. DETAILS OF SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

Proportionate Ownership in %
S. Name Relationship Nature of activity Principal Place Principal Place As at 31st As at 31st
No. of Incorporation of Business March, 2019 March, 2018
1 SAIL Jagdishpur Power Plant Limited Subsidiary Power Production India India 100% 100%
2 SAIL Refractory Company Limited Subsidiary Refactory Material production India India 100% 100%
3 SAIL Sindri Projects Limited Subsidiary Cement production India India 100% 100%
4 Chhattisgarh Mega Steel Limited Subsidiary Steel production India India 74% 74%
5 NTPC SAIL Power Company Ltd Joint-ventures Power Production India India 50% 50%
6 Bokaro Power Supply Co. Pvt. Ltd. Joint-ventures Power Production India India 50% 50%
7 Mjunction Services Limited Joint-ventures Consultancy services India India 50% 50%
8 SAIL Bansal Service Centre Ltd Joint-ventures Consultancy services India India 40% 40%
9 Bhilai Jaypee Cement Limited Joint-ventures Cement production India India 26% 26%
10 S&T Mining Co. Pvt. Limited Joint-ventures Coal Mining India India 50% 50%
11 International Coal Ventures Private Ltd. Joint-ventures Coal Mining India Mozambique 48% 48%
12 SAIL-MOIL Ferro Alloys Private Ltd. Joint-ventures Ferro Manganese production India India 50% 50%
13 SAIL SCI Shipping Pvt. Limited Joint-ventures Logistics India India 50% 50%
14 SAIL SCL Kerala Limited Joint-ventures Steel production India India 49% 49%
15 SAIL RITES Bengal Industry Pvt. Ltd. Joint-ventures Railway Wagon Production India India 50% 50%
16 SAIL Kobe Iron India Pvt. Limited Joint-ventures Steel production India India 50% 50%
17 SAIL-BENGAL Alloy Castings Private Ltd. Joint-ventures Alloy Casting India India 50% 50%
18 Prime Gold-SAIL JVC Limited Joint-ventures Steel production India India 26% 26%
19 VSL SAIL JVC Limited Joint-ventures Alloy Casting India India 21% 21%
20 Abhinav SAIL JVC Limited Joint-ventures Alloy Casting India India 26% 26%
21 NMDC SAIL Limited Joint-ventures Railway Project India India 49% 49%
22 TMT SAL SAIL JV Limited Joint-ventures Metal Products India India 26% 26%
23 SAL SAIL JVC Limited Joint-ventures Metal Products India India 26% 26%
24 Bastar Railway Private Limited Joint-ventures Railway Project India India 12% 21%
25 GEDCOL SAIL Power Corporation Ltd. Joint-ventures Power Production India India 26% NA
26 Almora Magnesite Limited Associate Megnesite Mining India India 20% 20%

142
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
44B. SUMMARISED FINANCIAL INFORMATION OF EQUITY METHOD INVESTEES

Joint ventures individually significant (` crore)

NTPC SAIL Power Company Limited
st st
(` crore) Summarised statement of 31 March, 31 March,
Profit and Loss 2019 2018
Summarised balance sheet 31st March, 31st March,
2019 2018 Revenue 256.42 176.15
Depreciation and ammortisation 10.83 8.07
Current assets
Interest income - 0.16
Cash and cash equivalents 52.03 43.44
Interest Expense - -
Other assets 470.50 764.17
522.53 807.61 Income tax expense or income 18.82 16.06
Non-current assets 3,475.83 2,789.19 Profit or loss from continuing operations 41.56 37.75
Curent Liabilities Post-tax profit or loss from discontinued operations - -
Financial liabilities (excluding trade payables 427.75 468.97 Other comprehensive income 0.08 0.25
and provisions)
Total comprehensive income 41.64 38.00
Other Liabilities 76.59 122.63
504.34 591.60 Ownership interest 50.00% 50.00%
Non-Current liabilities
Financial liabilities (excluding trade payables 956.75 711.29 International Coal Ventures Private Limited
and provisions) (` crore)
Other liabilities 39.02 109.70
995.77 820.99 Summarised balance sheet 31st March, 31st March,
Net Assets 2,498.25 2,184.21 2019 2018
Ownership Interest 50.00% 50.00%
Current assets
Carrying Amount of Interest 1,249.13 1,092.11
Cash and cash equivalents 18.25 50.92
(` crore) Other assets 65.29 37.21
83.54 88.13
Summarised statement of 31st March, 31st March, Non-current assets 2,370.98 2,217.58
Profit and Loss 2019 2018
Curent Liabilities
Revenue 2,656.59 2,602.17 Financial liabilities (excluding trade payables 272.30 248.04
and provisions)
Depreciation and ammortisation 149.06 150.38
Other Liabilities 9.12 0.51
Interest income 18.40 29.37
281.42 248.55
Interest Expense 22.50 41.19 Non-Current liabilities
Income tax expense or income 38.80 12.94 Financial liabilities (excluding trade payables - -
Profit or loss from continuing operations. 362.33 331.71 and provisions)
Post-tax profit or loss from discontinued operations - - Other liabilities 17.00 14.58
Other comprehensive income. (1.88) (0.68) 17.00 14.58
Net Assets 2,156.10 2,042.58
Total comprehensive income. 360.45 331.03
Less: Share Application Money Pending Alottment 180.01
Ownership interest 50.00% 50.00%
2,156.10 1,862.57
Ownership Interest 47.82% 47.82%
Mjunction Services Limited
(` crore) Carrying Amount of Interest 1,031.05 890.68

Summarised balance sheet st

31 March, st
31 March,
2019 2018
(` crore)

Current assets st st
Summarised statement of 31 March, 31 March,
Cash and cash equivalents 7.95 4.08 Profit and Loss 2019 2018
Other assets 380.77 307.48
388.72 311.56 Revenue 33.46 13.91
Non-current assets 89.02 99.87
Depreciation and ammortisation 0.11 0.13
Curent Liabilities
Interest income 0.71 0.65
Financial liabilities (excluding trade payables 177.64 133.51
and provisions) Interest Expense 107.46 89.91
Other Liabilities 9.41 10.14 Income tax expense or income - 0.40
187.05 143.65 Profit or loss from continuing operations (114.21) (67.33)
Non-Current liabilities Post-tax profit or loss from discontinued operations - -
Financial liabilities (excluding trade payables - -
and provisions) Other comprehensive income 202.63 3.26
Other liabilities 11.56 13.01 Total comprehensive income. 88.42 (64.07)
11.56 13.01 Ownership interest 47.82% 47.82%
Net Assets 279.13 254.77
Ownership Interest 50.00% 50.00%
Carrying Amount of Interest 139.57 127.39

143
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
Bokaro Power Supply Company Pvt. Ltd. (` crore)
(` crore)
Summarised statement of 31st March, 31st March,
Summarised balance sheet 31st March, 31st March, Profit and Loss 2019 2018
2019 2018
Revenue 276.44 84.13
Current assets Depreciation and ammortisation 38.69 38.43
Cash and cash equivalents 7.12 134.91
Interest income 0.23 -
Other assets 795.07 295.04
Interest Expense 12.09 18.92
802.19 429.95
Income tax expense or income 2.66 (30.80)
Non-current assets 548.41 834.01
Curent Liabilities Profit or loss from continuing operations (41.65) (69.03)
Financial liabilities (excluding trade payables 160.63 150.74 Post-tax profit or loss from discontinued operations - -
and provisions) Other comprehensive income 0.02 (0.31)
Other Liabilities 31.25 70.72 Total comprehensive income (41.63) (69.34)
191.88 221.46 Ownership interest 26.00% 26.00%
Non-Current liabilities
Financial liabilities (excluding trade payables 9.36 15.79
Summarised financial information for Joint Ventures not individually significant
and provisions)
(` crore)
Other liabilities 293.99 258.20
st st
303.35 273.99 Summarised statement of 31 March, 31 March,
Profit and Loss 2019 2018
Net Assets 855.37 768.51
Ownership Interest 50.00% 50.00% Profit or loss from continuing operations (3.00) (24.89)
Carrying Amount of Interest 427.69 384.26 Post-tax profit or loss from discontinued operations - -
Other comprehensive income 0.03 0.01
(` crore)
Total comprehensive income. (2.97) (24.88)
Summarised statement of 31st March, 31st March,
Profit and Loss 2019 2018 Associates, not individually significant (` crore)

st st
Revenue 880.93 900.72 Summarised statement of 31 March, 31 March,
Profit and Loss 2019 2018
Depreciation and ammortisation - -
Interest income 23.87 25.61 Profit or loss from continuing operations 1.07 0.52
Interest Expense 16.24 15.66 Post-tax profit or loss from discontinued operations - -
Income tax expense or income 20.70 2.09
Other comprehensive income - -
Profit or loss from continuing operations 65.17 78.54
Total comprehensive income 1.07 0.52
Post-tax profit or loss from discontinued operations - -
Other comprehensive income (0.51) (0.49)
The unrecognised share of losses of joint ventures, both for the reporting period and
Total comprehensive income 64.66 78.53
cumulatively, where SAIL has stopped recognising its share of losses of the joint venture
Ownership interest 50.00% 50.00% when applying the equity method
(` crore)
Bhilai Jaypee Cement Limited
31st March, 31st March,
(` crore) 2019 2018

Summarised balance sheet 31st March, 31st March, SAL SAIL JVC Limited - Reporting - -
2019 2018 SAL SAIL JVC Limited - Cumulative 0.01 0.01
SAIL MOIL Ferro Alloys Private Limited - Reporting 0.81 4.57
Current assets SAIL MOIL Ferro Alloys Private Limited - Cumulative 7.05 6.24
Cash and cash equivalents 5.60 4.20 SAIL SCL Kerala Limited - Reporting 8.12 8.64
Other assets 40.17 31.43 SAIL SCL Kerala Limited - Cumulative 29.01 20.89
45.77 35.63 Abhinav SAIL JVC Limited - Reporting - -
Non-current assets 710.87 775.68 Abhinav SAIL JVC Limited - Cumulative 0.01 0.01
Curent Liabilities S&T Mining Pvt Limited - Reporting 1.35 2.76
Financial liabilities (excluding trade payables 155.57 258.54 S&T Mining Pvt Limited - Cumulative 4.61 3.26
and provisions) GEDCOL SAIL Power Corporation Limited - Reporting 0.06 -
Other Liabilities 574.59 435.83 GEDCOL SAIL Power Corporation Limited - Cumulative 0.06 -
730.16 694.37 SAIL Bengal Alloy Casting Private Limited - Reporting - -
Non-Current liabilities SAIL Bengal Alloy Casting Private Limited - Cumulative 0.01 0.01
Financial liabilities (excluding trade payables 5.45 13.94
and provisions)
Dividend Recieved from the Joint Ventures (` crore)
Other liabilities 7.23 5.62
12.68 19.56 31st March, 31st March,
2019 2018
Net Assets 13.80 97.38
Ownership Interest 26.00% 26.00% NTPC SAIL Power Company Limited 20.00 50.00
Calculated Share of Net Assets 3.59 25.32 Mjunction Services Limited 6.00 5.60
Goodwill 5.73 SAIL Bansal Service Center Limited 0.05 -
Carrying amount of Interest 3.59 31.05 Bokaro Power Supply Co. Pvt. Limited 12.40 12.40

144
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
44C DETAILS OF SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
44.C.1 Two of the subsidiary companies, SAIL Jagadishpur Power Plant Limited and SAIL Sindri Projects Limited, have filed application for closure of the company under Fast Track
Exit Mode as per provisions of Section 248(2) of the Companies Act, 2013 and Rule 4(1) of the Companies (Removal of Names of the Companies from the Register of
Companies) Rules, 2016. The financial statements/ information in respect of these two subsidiary companies as of year ended 31st March, 2019 are not available. Considering
the above, the assets and liabilities as at 31st March, 2019 and revenues and expenditures for the year ended 31st March, 2019 have not been considered in the Consolidated
Ind AS Financial Statements.
44.C.2 Jointly controlled enttities as detailed below are under liquidation. The investment in these companies has been fully provided for as at 31st March, 2019. The share of profit/
lossin respect of these joint ventures has been considered at Nil:
Name of the Jointly Controlled Entities

1 NMDC-SAIL Limited

Subsidiary/ Jointly controlled entities of ICVL (Joint Venture Entity):

2 Benga Power Plant (Mauritius) Limited

3 Promark Services Limited

4 ICVL Venture (Mauritius) Limited

5 Benga Energia SA

44.C.3 In respect of one subsidiary and six jointly controlled entities as detailed below, certain accounting policies are not consistent with that of the Group accounting policies. The
effect on the profit/ loss of these jointly controlled entities due to inconsistency in accounting policy with that of the group is not material
Sl No Name of the Jointly Controlled Entities Details of Differing Accounting Policy in comparison to Accounting Policy of the
Holding Company

1 SAIL Refractory Company Limited - Subsidiary Note No. 3.1.3: Depreciation on certain assets are provided on the basis of estimated
useful life, which is different from SAIL. No monetary limit on capitalization of Capital
Repairs

2 mjunction services limited - Jointly controlled entity Note No. 2.5: Intangible assets (software) are amortised over a period of three years.

3 International Coal Ventures Private Limited - Jointly controlled entity Note No. 3.2.2: Major repairs of property, plant and equipment are recognised in the
carrying amount of the item if it is probable that the future economic benefits of the costs
incurred will flow to the Group.
Note No. 3.2.3: Depreciation on capital spares is provided over the useful life of the spare
or remaining useful life of the mother asset, as reassessed, whichever is lower.

4 SAIL & MOIL Ferro Alloys Private Limited- Jointly controlled entity Note No. 12(B)(d)(iv): Depreciation on addition/deletion during the year is provided on
pro-rata basis with refrence to the month of addition/ deletion

5 NTPC-SAIL Power Company Limited- Jointly controlled entity Note No. 1.1: No monetary limit on capitalization of Capital Spares
Note No. 1.2: No monetary limit on capitalization of Capital Repairs
Note No. 1.5: Depreciation on certain assets are provided on the basis of estimated
useful life, which is different from SAIL.
Note No. 3.4: Amortization of software is done for 3 years or legal right to use, whichever
is less

6 SAIL-RITES Bengal Wagon Industry Private Limited- Jointly Note No 3.2: Sales are net of sales taxes, rebates and price concessions. Sales are
controlled entity recognised at the time of dispatch of materials to the buyers including the cases where
delivery documents are endorsed in favour of the buyers. Where the contract prices are
not finalised with government agencies, sales are accounted for on provisional basis.
Note No. 3.8: Basis of valuation of inventory is different from SAIL.

7 S & T Mining Company Private Limited- Jointly controlled entity Note No. 2.5: Depreciation on certain assets are provided on the basis of estimated
useful life, which is different from SAIL.

145
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
44D. INFORMATION REQUIRED BY SCHEDULE III OF THE COMPANIES ACT 2013, WITH RESPECT TO CONSOLIDATED FINANCIAL STATEMENTS
(` crore)

For the year ended 31 March, 2019 Net Worth Profit or (Loss) Other Comprehensive Total Comprehensive Income
Name of the entity in the Group, Joint Ventures Ownership Proportionate As % of Share in As % of Share in As % of Share in As % of
& Associate in % Share Consolidated Profit/ (Loss) Consolidated Other Consolidated Total Consolidated
As at 31 Net Worth Profit/ (Loss) Comprehensive Other Comprehensive Total
March, 2019 Income Comprehensive Income Comprehensive
Income Income

Steel Authority of India Ltd. 100 38,151.57 96.23% 2,178.82 92.77% 259.08 73.01% 2,437.90 90.06%
Subsidiaries
SAIL Jagdishpur Power Plant Limited 100 - 0.00% - 0.00% - 0.00% - 0.00%
SAIL Refractory Company Limited 100 140.10 0.35% 21.81 0.93% 0.07 0.02% 21.88 0.81%
SAIL Sindri Projects Limited 100 - 0.00% - 0.00% - 0.00% - 0.00%
Chhattisgarh Mega Steel Limited 74 0.02 0.00% (0.01) 0.00% - 0.00% (0.01) 0.00%
Joint-ventures
NTPC SAIL Power Company Ltd. 50 1,249.12 3.15% 181.17 7.71% (0.95) -0.27% 180.22 6.66%
Bokaro Power Supply Co. Pvt. Ltd. 50 427.69 1.08% 32.59 1.39% (0.26) -0.07% 32.33 1.19%
Mjunction Services Limited 50 139.57 0.35% 20.79 0.88% 0.04 0.01% 20.83 0.77%
SAIL Bansal Service Centre Ltd 40 0.72 0.00% 0.11 0.00% 0.01 0.00% 0.12 0.00%
Bhilai Jaypee Cement Limited 26 9.32 0.02% (10.83) -0.46% 0.01 0.00% (10.82) -0.40%
S&T Mining Co. Pvt. Limited 50 - 0.00% (1.35) -0.06% - 0.00% (1.35) -0.05%

146
International Coal Ventures Private Ltd. 47.82 1,031.05 2.60% (54.62) -2.33% 96.90 27.30% 42.28 1.56%
SAIL-MOIL Ferro Alloys Private Ltd. 50 - 0.00% (0.80) -0.03% - 0.00% (0.80) -0.03%
SAIL SCI Shipping Pvt. Limited 50 0.07 0.00% - 0.00% - 0.00% - 0.00%
SAIL SCL Kerala Limited 49.26 - 0.00% - 0.00% - 0.00% - 0.00%
SAIL RITES Bengal Industry Pvt. Ltd. 50 21.00 0.05% 8.24 0.35% - 0.00% 8.24 0.30%
SAIL Kobe Iron India Pvt. Limited 50 0.26 0.00% - 0.00% - 0.00% - 0.00%
SAIL-BENGAL Alloy Castings Private Ltd. 50 - 0.00% - 0.00% - 0.00% - 0.00%
Prime Gold-SAIL JVC Limited 26 5.63 0.01% - 0.00% - 0.00% - 0.00%
VSL SAIL JVC Limited 20.58 1.02 0.00% (0.09) 0.00% - 0.00% (0.09) 0.00%
Abhinav SAIL JVC Limited 26 - 0.00% - 0.00% - 0.00% - 0.00%
NMDC SAIL Limited 49 - 0.00% (0.02) 0.00% - 0.00% (0.02) 0.00%
TMT SAL SAIL JV Limited 26 - 0.00% (0.00) 0.00% - 0.00% (0.00) 0.00%
SAL SAIL JVC Limited 26 - 0.00% (0.00) 0.00% - 0.00% (0.00) 0.00%
GEDCOL SAIL Power corp. Ltd. 26 0.20 0.00% (0.06) 0.00% - 0.00% 0.00%
Bastar Railway Private Limited 12 35.14 0.09% 0.21 0.01% - 0.00% 0.21 0.01%
Associate 0.00%
Almora Magnesite Limited 20 1.72 0.00% 0.21 0.01% - 0.00% 0.21 0.01%
Non-controlling interest - -
Consolidation adjustments (1,568.03) -4.24% (27.46) -1.17% (0.00) 0.00% (24.05) -0.89%
Grand total 39,646.16 99.70% 2,348.71 100.00% 354.90 100.01% 2,707.08 100.00%
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
44E. INFORMATION REQUIRED BY SCHEDULE III OF THE COMPANIES ACT 2013, WITH RESPECT TO CONSOLIDATED FINANCIAL STATEMENTS
(` crore)
For the year ended 31 March, 2018 Net Worth Profit or (Loss) Other Comprehensive Total Comprehensive Income
Name of the entity in the Group, Joint Ventures Ownership Proportionate As % of Share in As % of Share in As % of Share in As % of
& Associate in % Share Consolidated Profit/ (Loss) Consolidated Other Consolidated Total Consolidated
As at 31 Net Worth Profit/ (Loss) Comprehensive Other Comprehensive Total
March, 2018 Income Comprehensive Income Comprehensive
Income Income

Steel Authority of India 100 35,713.67 96.66% (481.71) 171.18% 186.32 99.75% (295.39) 312.25%
Subsidiaries
SAIL Jagdishpur Power Plant Limited 100 0.02 0.00% (0.01) 0.00% - 0.00% (0.01) 0.01%
SAIL Refractory Company Limited 100 123.36 0.33% 14.20 -5.05% (0.01) -0.01% 14.19 -15.00%
SAIL Sindri Projects Limited 100 0.02 0.00% - 0.00% - 0.00% - 0.00%
Chhattisgarh Mega Steel Limited 74 0.03 0.00% (0.01) 0.00% - 0.00% (0.01) 0.01%
Joint-ventures
NTPC SAIL Power Company Ltd. 50 1,092.14 2.96% 165.86 -58.94% (0.34) -0.18% 165.52 -174.97%
Bokaro Power Supply Co. Pvt. Ltd. 50 408.56 1.11% 39.64 -14.09% (0.41) -0.22% 39.23 -41.47%
Mjunction Services Limited 50 127.39 0.34% 21.22 -7.54% (0.63) -0.34% 20.59 -21.77%
SAIL Bansal Service Centre Ltd 40 0.30 0.00% (0.24) 0.09% - 0.00% (0.24) 0.25%
Bhilai Jaypee Cement Limited 26 20.14 0.05% (10.93) 3.88% 0.02 0.01% (10.91) 11.53%
S& T Mining Co. Pvt. Limited 50 (3.26) -0.01% (2.77) 0.98% 0.01 0.01% (2.76) 2.92%

147
International Coal Ventures Private Ltd. 47.82 988.76 2.68% 10.18 -3.62% 1.83 0.98% 12.01 -12.70%
SAIL-MOIL Ferro Alloys Private Ltd. 50 - 0.00% (4.57) 1.62% - 0.00% (4.57) 4.83%
SAIL SCI Shipping Pvt. Limited 50 0.06 0.00% (0.01) 0.00% - 0.00% (0.01) 0.01%
SAIL SCL Kerala Limited 49.26 - 0.00% (7.98) 2.84% - 0.00% (7.98) 8.44%
SAIL RITES Bengal Industry Pvt. Ltd. 50 12.76 0.03% (2.07) 0.74% - 0.00% (2.07) 2.19%
SAIL Kobe Iron India Pvt. Limited 50 0.26 0.00% - 0.00% - 0.00% - 0.00%
SAIL-BENGAL Alloy Castings Private Ltd. 50 - 0.00% (0.01) 0.00% - 0.00% (0.01) 0.01%
Prime Gold-SAIL JVC Limited 26 5.63 0.02% (0.75) 0.27% - 0.00% (0.75) 0.79%
VSL SAIL JVC Limited 20.58 1.21 0.00% (0.09) 0.03% - 0.00% (0.09) 0.10%
Abhinav SAIL JVC Limited 26 - 0.00% (0.01) 0.00% - 0.00% (0.01) 0.01%
NMDC SAIL Limited 49 0.02 0.00% - 0.00% - 0.00% - 0.00%
TMT SAL SAIL JV Limited 26 - 0.00% - 0.00% - 0.00% - 0.00%
SAL SAIL JVC Limited 26 0.01 0.00% - 0.00% - 0.00% - 0.00%
Bastar Railway Private Limited 21 0.23 0.00% (0.51) 0.18% - 0.00% (0.51) 0.54%
Associates 0.00%
Almora Magnesite Limited 20 1.35 0.00% 0.35 -0.12% - 0.00% 0.35 -0.37%
Non-controlling interest - -
Consolidation adjustments (1,546.00) -4.17% (21.18) 7.53% - 0.00% (21.17) 22.38%
Grand total 36,946.66 100.00% (281.40) 100.00% 186.80 100.00% (94.60) 100.00%
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
45. DETAILS OF ASSETS PLEDGED
The carrying amounts of assets pledged as security for current and non-current borrowings are: (` crore)

Particulars As at 31st As at 31st

March, 2019 March, 2018

Current
Inventories and trade receivables (to the extent pledged) 3490.26 2334.39
Non Current
Plant & Machinery (movable assets) - Durgapur steel plant (to the extent pledged) 134.00 198.00
Plant & Machinery (movable assets)-Bokaro & Bhilai Steel Plant (to the extent pledged) 21072.57 16403.26
Land and plant & Machinery(at Mouje-Wadej of city taluka, District Ahemadabad,Gujrat) - ISP 7726.00 11245.00

46. EFFECTIVE TAX RECONCILIATION (` crore)

Particulars As at 31st As at 31st

March, 2019 March, 2018

Profit/(loss) before tax 3,549.24 (526.63)

Domestic tax rate for PFS 34.944% 34.944%
Expected tax expense [A] 1,240.25 (184.03)
Adjustment for tax-exempt income/ non-deductible expenses 0.68 (12.59)
Adjustment for difference tax rate items - (1.48)
Tax incentive on specific expenditure (14.05) (16.09)
Tax related to earlier years 4.87 35.73
Increase in Corporate tax rate - (28.39)
Others (31.22) 10.79
Total adjustments [B] (39.72) (12.03)
Actual tax expense [C=A+B] 1,200.53 (196.06)
Tax expense comprises:
Current tax expense - -
Deferred tax credit 1,200.53 (252.29)
Tax expense recognized in Statement of profit and loss [D] 1,200.53 (252.29)

47.1 CONTINGENT LIABILITIES (` crore)

As at 31st As at 31st
March, 2019 March, 2018

In Respect of SAIL:
(i) Claims against SAIL pending appellate/judicial decisions 24252.86 22672.07
(ii) Other claims against SAIL not acknowledged as debt 3398.13 3550.27
(iii) Disputed income tax/service tax/other demand on joint venture for which SAIL may be contingently liable under the 36.35 34.76
joint venture agreement
(iv) Bills drawn on customers and discounted with banks. 189.01 68.83
(v) Price escalation claims by contractors/suppliers and claims by employees. 401.96 441.70
In Respect of CFS entities:
(i) Claims against Subsidiaries/Jointly controlled entities entities pending appellate/judicial decisions 35.09 -
(ii) Other claims against Subsidiaries/Jointly controlled entities not acknowledged as debt 1187.80 44.88

In respect of SAIL:
47.2 (a) (i) The Nine Judges Constitutional Bench of Hon'ble Supreme Court, vide its judgment dated 11.11.2016, has upheld the constitutional validity of levy of Entry Tax Acts
enacted by various States and has laid down principles/tests for consideration. During the year, Hon'ble Allahabad High Court vide its Order dated 4th May, 2018, dismissed
the petition filed by SAIL for levy of Entry Tax on goods entering into local areas of Uttar Pradesh. Accordingly, an amount of `92.23 crore has been charged in the Statement
of Profit and Loss under 'Exceptional Items'. The respective regular Benches of other Courts would hear the matters as per laid down principles. Pending decisions by the
regular Benches of other Courts on levy of Entry Tax in the States of Chhattisgarh, Odisha, Uttar Pradesh and Jharkhand, the Entry Tax demands under dispute of `1092.28
crore, `241.00 crore, ` Nil crore and `5.15 crore respectively upto 31st March, 2019 aggregating to `1338.43 crore (previous year `1092.28 crore, `241.00 crore, `92.23
crore and `5.15 aggregating to `1430.66 crore upto 31st March, 2018) have been treated as contingent liabilities.
(ii) The West Bengal Finance Act, 2017 has included WB Entry Tax in the jurisdiction of West Bengal Taxation Tribunal. Further, Hon'ble Calcutta High Court, vide its Order
dated 15.06.2018, transmitted the Writ Petition of DSP and ISP on Entry Tax to the West Bengal Taxation Tribunal.

148
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
Pending decision by West Bengal Taxation Tribunal the disputed Entry Tax demands amounting to `209.52 crore (upto 31st March, 2018 `Nil crore) have been treated as
contingent liabilities.
Pending final decision by the Hon'ble Calcutta High Court, in the case of levy of Entry Tax in West Bengal, the disputed Entry Tax demands of `89.40 crore upto 31st March,
2019 (upto 31st March, 2018 `295.50 crore) have been treated as contingent liabilities
(b) Hon'ble Supreme Court dismissed the SLP by SAIL in respect of dispute with Damodar Valley Corporation(DVC) related to provisional tariff petition of electricity charges for
2009-14 vide order dated 18th January, 2017, keeping the question of law open. The Order of Central Electricity Regulatory Commission (CERC) dt.7/8/2013 related to Tariff
of 2009-14 against Petition No.275/GT/2012 has been challenged before Appellate Tribunal for Electricity (APTEL) (Appeal No.18 of 2014) in which SAIL has also
intervened and the order of APTEL is pending. Further, Hon'ble Supreme Court dismissed the civil appeal filed by DVC pertaining to tariff of FY 2004-05 to 2008-09 against
the Order of APTEL vide its Order dated 3rd December, 2018 which may also have effect on future tariff orders. The financial implication can only be ascertained after the
finalisation of retail tariff by State Electricity Regulatory Commission (SERC) as directed by APTEL. Pending fixation of Electricity Tariffs, disputed claims of DVC of ` 587.72
crore upto 31st March, 2019 (upto 31st March, 2018, ` 587.72 crore) has been treated as Contingent Liability and included in Note No. 47.1(i) above. Against the said
claims, the entire amount has been paid to DVC and disclosed under Other Current Assets. Further from 1st April, 2017 onwards full invoice value has been considered in
the Statement of Profit and Loss.
47.3 Under the Jharkhand Mineral Area Development Authority (Amendment) Act, 2015 the State Government of Jharkhand has made a demand of `3701.48 crore upto 31st
March, 2019 (upto 31st March, 2018 `3374.46 crore) towards "Market Fee" on transaction value of coal, iron and steel items. As the matter is sub-judice, the amount has
been disclosed as a Contingent Liability in Note No. 47.1(i) above.
47.4 In its judgement, the Central Administrative Tribunal (CAT), Kolkata has directed that Ministry of Steel shall consider the aspect of payment of arrears of revised perks and
allowances and take appropriate decision of payment of revised perks and allowances amounting to `325.13 crore to the executives for the period 26.11.2008 to
4.10.2009. Ministry of Steel intimated the matter to SAIL on 7.12.2016. A stay petition in the matter has been filed on 22.12.2016 and is pending before the Hon'ble
Calcutta High Court. As the matter is sub-judice, the amount has been disclosed as a Contingent Liability in Note No. 47.1(v) above.
47.5 Indigenous washed coking coal supplies, have been claimed by Bharat Coaking Coal Limited (BCCL) and Central Coalfields Limited (CCL) at unilaterally notified price w.e.f.
13th January, 2017 and 14th January, 2017 respectively, which is in deviation from the mutually agreed price with SAIL for the year 2016-17. SAIL has accounted for the
supplies based on agreed prices as per jointly signed Memorandum of Understanding, valid for supplies w.e.f. 1st April, 2016 to 31st March, 2017, between SAIL and BCCL
& CCL. The differential claims of BCCL & CCL, amounting to `334.45 crore at unilaterally notified higher rates over and above MOU rates, have been disclosed as contingent
liability in the Note No. 47.1(ii)above.
47.6 The Ministry of Environment & Forest and Climate Change (MoEF& CC) vide their letter No.- 11-599/ 2014-FC dated 1st April 2015 issued revised Guidelines for diversion
of Forest Land for non-forest purpose under the Forest (Conservation) Act, 1980 (FC Act). These revised Guidelines stipulated that in case of existing mining leases having
Forest Land (partially or fully), where approval for only a part of forest land has been obtained under the FC Act, the Central Government accorded general approval under
Section-2(iii) of the FC Act for the remaining area also to be Forest Land, subject to certain conditions, which includes realising Net Present Value (NPV) for the entire forest
land falling in the mining lease, in case NPV of such forest land has not already been realised.
In this matter, as per legal opinion obtained by SAIL, Section 2 (iii) of FC Act, 1980 will not apply to Government Corporation and NPV is required to be paid only for that
limited area, which has been approved by MoEF& CC and in which mining activities are proposed to be done and not for the entire forest area. The matter of applicability of
NPV for total forest land has been challenged by SAIL in Hon'ble High Court of Jharkhand. The Hon'ble Court, in its order, has directed to place the matter before Division
Bench of this Court.
A writ petition has also been filed in the Hon'ble high Court of Chhattisgarh against the demand of `96.28 crore received during last year from the Office of Principal Chief
Conservator of Forest, Chhattisgarh.
47.7 Pursuant to the Hon'ble Supreme Court Judgment dated 2nd August, 2017 in the Common Cause matter regarding illegal mining, demand/Show cause notices have been
issued for recovery of the price of minerals produced without and beyond the environmental clearances under Section 21(5) of Mines and Mineral Development Regulation
Act, 1957, forest clearance under the Forest Conservation Act 1980, and towards excess production beyond consent to operate. SAIL has challenged the purported
demand before the High Court of Jharkhand and Odisha and obtained stay on demand. As the matter is pending for final determination and considering the implication of
existing litigation, SAIL has provided as detailed below:
(a) In respect of Iron Ore, by the Government of Odisha and Government of Jharkhand amounting to `245.89 crore and `1768.42 crore (` 212.85 crore and ` 1478.86 crore
as on 31st March 2018) respectively (including interest). Based on internal assessment, SAIL has provided an amount of `348.52 crore (`15.07 crore during the year) on
estimated basis. Balance amount of `1665.79 crore (including interest) has been treated as contingent liability in Note No. 47.1(i) above.
(b) In respect of Limestone, by the Government of Jharkhand amounting to `24.88 crore (including interest) (` 20.28 crore as on 31st March 2018). Based on internal
assessment, SAIL has provided an amount of `8.91crore (` 1.64 crore during the year) on estimated basis. Balance amount of `15.97crore (including interest) has been
treated as contingent liability in Note No. 47.1(i).
47.8 In respect of Coal, by the Government of Jharkhand amounting to `434.81 crore (including interest) (` 354.54 crore as on 31st March 2018). Revision Application has been
filed under Rule 55 (5) of Mineral Concessions Rule, 1960 read with Section 30 of Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). The Revisional
Authority, Ministry of Coal, has granted Stay to SAIL. Accordingly pending disposal, the amount of `434.81 crore (including interest) has been treated as Contingent Liability
in Note No. 47.1(i).
47.9 (a) M/s Tata Projects Limited (TPL) & M/s Danieli Corus BV (DC)(in consortium) have filed a case before Arbitral Tribunal in International Chamber of Commerce against SAIL/
Rourkela Steel Plant for resolution of dispute arising out of contract. Arbitral Tribunal has awarded a sum of `626.02 crores on 16-May-2018 against SAIL/Rourkela Steel
Plant.
Against the award the management has filed an appeal before Honb'le High Court at Delhi which has been admitted. Pending disposal of appeal, management has deposited
`300 crores. The sum of `707.43 crores (including interest) has been disclosed under contingent liability in Note No. 47.1(ii) above.
(b) M/s JSC Cryogenmash have filed a case before Arbitral Tribunal in International Chamber of Commerce against SAIL/Bhilai Steel Plant for resolution of dispute arising out
of contract. Arbitral Tribunal has awarded a sum of `106.92 crores on 20.07.2018 against SAIL / Bhilai Steel plant.
Against the award the management has filed an appeal before Hon'ble High Court at Delhi which has been admitted. Pending disposal of appeal, the sum of `106.92 crore
(including interest) has been disclosed under contingent liability in Note no 47.1(ii) above.
47.10 Pending settlement of the claims of Bharat Coking Coal Limited (BCCL)an amount of `27.00 crore related to selective loading charges by BCCL and `14.49 crore related
to extra royalty on output quantity, has been shown under Contingent Liabilities in Note No. 47.1(ii) above.
47.11 Land measuring 5.545 acres was allotted to DVC for 30 years i.e. w.e.f. 12.07.1966 on long term lease basis. The Land was given to DVC for setting up of Electrical sub-
station for ensuring supply of power for the benefit of ASP. There was no lease agreement for the subsequent period, i.e., w.e.f. 13/07/1996. In absence of any agreement,
the dues receivables for the said period, could not be ascertained with reasonable certainty. The same will be accounted for in the year of settlement.
47.12 Consequent to the order of Hon'ble Odisha High Court, SAIL's claim towards renewal of lease [total area of 2599.54 acre disclosed under Note No. 4.(ii) (b) ], of land at
Horomoto stands rejected, except surface area of 222.54 acre for which State Govt has been directed to consider as per provisions of Law.
47.13 Wage revision for non-executives is due since 01.01.2017. Keeping in view the affordability and financial sustainability clause in Office Memorandum dated 3rd August,
2017 and 24th November, 2017 issued by the Government of India, Ministry of Heavy Industries & Public Enterprises, Department of Public Enterprises (DPE) in respect of
pay revision of employees and in view of negative figures of average profit before tax of previous three years, pending negotiation with National Joint Committee for the Steel
Industry (NJCS) for such wage revision:

149
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(i) An all-inclusive provision towards salary and wage revision of Non-executive Employees charged to 'Employee Benefit Expenses' for the period from 01.01.2017 to
31.12.2017 amounting to `308.24 crore (including `77.47 crore shown as exceptional Item) had been written back during the financial year 2017-18.
(ii) No provision has been made for the period 01-01-2017 to 31-03-2019.
Based on the above facts, opinion of Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) received during the year, and in terms of
paragraph 14 of Ind AS 37, since one of the conditions of reliable estimation of the amount of the obligation can not be made at present, the company has considered not
to make any provision in the accounts.
48.1 Estimated amount of contracts remaining to be executed and not provided for (net of advances) are:
In respect of SAIL: (` crore)
Particulars As at 31st As at 31st
March, 2019 March, 2018
Capital commitments 7031.26 10747.11
Other commitments 2026.68 1824.86

In respect of Subsidiaries/Jointly controlled entities:

(` crore)
Particulars As at 31st As at 31st
March, 2019 March, 2018

Capital commitments 470.30 0.35

Other commitments 103.59 -

In respect of SAIL:
48.2 The amount due to Micro and Small Enterprises as defined in the The Micro, Small and Medium Enterprises Development Act, 2006 (as disclosed in Note No. 30 Trade
Payables) has been determined to the extent such parties have been identified on the basis of information available with SAIL. The disclosures relating to Micro and Small
Enterprises as at 31st March, 2019 are as under:
No. Description As at 31st As at 31st
March, 2019 March, 2018
i. The principal amount remaining unpaid to suppliers as at the end of the Year. 67.45 48.22
ii. The amount of interest accrued during the year and remaining unpaid at the end of the Year. - -
iii. The amount of further interest remaining due and payable even in the succeeding years, until such date when the - -
interest dues as above are actually paid to the small enterprises, for the purpose of disallowance as a deductible
expenditure under section 23.
iv. The interest due thereon remaining unpaid to supplier as at the end of the Year. - -

For the Year ended

31st March, 2019 31st March, 2018
v. The amount of interest paid in terms of section 16, along with the amount of the payment made to the supplier - -
beyond the appointed day during the Year.
vi. The amount of interest due and payable for the period of delay in making payment (which have been paid but - -
beyond the appointed day during the year) but without adding the interest specified under this Act.

48.3 Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmations/reconciliations and consequential adjustment, if any.
Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made. However, Management does not expect to have any
material financial impact of such pending confirmations/reconciliations.
48.4 As per past practice SAIL has stock of iron ore fines of 41.52 million tonnes at various mines of SAIL. Since the usage/sale of such iron ore fines, involves elements of
uncertainties, as a matter of prudence, no valuation of such fines has been made in the accounts. However, the revenue earned from actual disposal thereof during the year
has been recognised in the books of accounts.
48.5 The Block Land and Land Reforms Office, (Faridpur-Durgapur) and Andal, District: Paschim Bardhaman, Govt. Of West Bengal has raised demand of arrears of land revenue,
cess and interest for part of land of Durgapur Steel Plant henceforth referred to as 'SAIL' and its Township covering a period of past 40 years aggregating to `494.51 crore
vide two demand notices dated 21.02.2018 and 08.03.2018 respectively).
SAIL has contested the demands. Part of the land against which demand has been raised was acquired on behalf of the Central Government under Land Acquisition Act and
such acquisition vested in Union of India, while certain other parts of its lands were transferred by State Government to the Central Government and SAIL holds such lands
on behalf of President of India. As per Article 285 of the Constitution of India no land revenue is payable on such lands. Moreover, SAIL had also paid capitalised value of
land revenue and as per judicial pronouncement, no land revenue is payable for lands for which capitalised value is paid. As such SAIL is of the opinion that the demand
raised against SAIL is not tenable at all. Representation on that effect has already been made on 26th April, 2018 and 28th April, 2018. The matter has been referred to the
Directorate of Land Records & Surveys by the District Land & Land Reform Officer on 26th June, 2018. No further communication has been received from the State
Government authorities.
48.6 (i) The Company does not have taxable income in view of brought forward losses, unabsorbed depreciation and other reliefs available under the Income Tax Act, 1961 ('the Act').
(ii) In view of the book losses during the immediately preceding three years and based on the expert opinions/ judicial pronouncements ((including jurisdictional courts), no
provision has been considered necessary during the year for Minimum Alternate Tax(MAT) on book profit as per Section 115 JB of the Act.
49.1 Revenue from operations for the period up to 30th June, 2017 includes excise duty, which is discontinued effective 1st July, 2017 upon implementation of Goods and
Services Tax (GST). In accordance with 'Ind AS 18- Revenue'/ 'Ind AS 115- Revenue from Contracts with Customers', In respect of SAIL: GST amount of `10678.01 crore
(Previous Year : `7864.70 crore) In respect of SUBSIDIARY: GST amount of `34.90 crore (Previous Year : `16.52 crore) is not included in Revenue from Operations. In
view of the aforesaid change, Revenue from Operations for the year ended 31st March, 2019 is not comparable with corresponding figures for the year ended 31st March, 2018.
In respect of SAIL:
49.2 Sales include sale to Government Agencies recognized on provisional contract prices during the year ended 31st March, 2019: ` 5012.76 crore (Previous Year : `4802.50
crore) and cumulatively up to 31st March, 2019 : `17252.66 crore (upto Previous Year : `12271.05 crore).
49.3 As per the Department of Public Enterprises (DPE) guideline, SAIL is required to contribute up to 30% of Salary (Basic Pay + Dearness Allowance) in respect of executive

150
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
employees as superannuation benefits, which may include Contributory Provident Fund, Gratuity, Pension and Post-Superannuation Benefits. Accordingly SAIL has made
provision for pension benefit for executive employees @ 9% of Salary w.e.f. 1st January, 2007 and 3% of Salary w.e.f. 1st April, 2015. Further, pension benefit for non-
executive employees has been provided @ 6% of Salary w.e.f. 1st January, 2012 and 2% of Salary w.e.f. 1st April, 2015.
Pension Scheme was approved in the Meeting of the Board of Directors held on 9th February, 2017 with modification that from the Financial Year 2015-16 and onwards, the
contribution towards Pension shall be measured, as a percentage of Profit Before Tax(PBT) to average Net-worth. If the percentage of PBT to average Net-worth is 8% or
above, amount of Pension contribution shall be limited to 9% of Basic Pay plus DA for Executives and 6% of Basic Pay plus DA for Non-executive, else the amount of
contribution towards Pension will be reduced proportionately. However, a minimum Pension contribution shall be kept at the rate of 3% and 2 % of Basic Pay plus DA for
Executive and Non-Executive employees respectively even in case of loss during a Financial Year. Since the profit earned by SAIL during the Financial Year ended 31st March,
2019 is more than 8% of average Net-worth, provision for Other Benefits (including pension) has been made @ 9% and 6% of salary w.e.f. 1st April 2018 for Executive and
Non-executive employees respectively.
As such, on 30th April, 2019, SAIL Pension Scheme/ Trust Deed/ rules containing above terms have been executed by nominees of National Joint Committee for Steels
(NJCS) and Steel Executives Federation of India (SEFI).
In respect of SAIL:
The cumulative provision/liability towards pension benefit for executive & non-executive employees, amounting to `2395.76 crore (`359.40 crore during the year) and
`46.25 crore (`4.77 crore during the year) has been charged to `Employee Benefits Expense' and `Expenditure during Construction' respectively.
In respect of SUBSIDIARY:
The cumulative provision/liability towards pension benefit for executive & non-executive employees, amounting to `3.28 crore has been charged to `Employee Benefits
Expense' and `Expenditure during Construction' respectively.
49.4 The research and development expenditure charged to Statement of Profit & Loss and allocated to Fixed Assets/Capital work-in-progress (Net), during the year, amount to
`305.09 crore (`314.71 crore) and `14.77 crore (`20.79 crore) respectively. The aggregate amount of revenue expenditure incurred on research and development is
shown in the respective head of accounts. The break-up of the amount is as under:
(` crore)
Head of Account For the year ended
31st March, 2019 31st March, 2018
Raw Materials 144.76 115.05
Employees Benefits Expense 64.81 97.95
Stores & Spares Consumed 12.46 11.40
Power & Fuel 23.37 21.61
Repairs & Maintenance 3.98 6.53
Depreciation and Amortisation Expense 7.69 8.54
Other Expenses 42.96 49.53
Finance Cost 5.01 4.10
Total 305.09 314.71
49.5 The Company considers the assets of one entire plant as Cash Generating Unit (CGU). The Company has internally reviewed whether there are any indicators that the
carrying amount of its assets of CGUs may be impaired on each balance sheet date. If any such indicators exist, the asset recoverable amount is estimated as higher of the
net selling price and the value in use. Value in use is based on present value of estimated future cash flows expected to arise from the continuing use of an asset and from
its disposal at the end of its useful life. An impairment loss is recognised whenever the carrying amounts of assets of a CGU exceed the asset recoverable amount. Further
to the internal assessment, the Company also determines net selling price of the assets of CGU, in which any such indication exists, once every three years by an
independent expert.
Based on the internal assessment done by the Company at its different CGUs as per the accounting policy of the Company, no impairment loss is required to be provided.
49.6 As per Section 135 of the Companies Act, 2013, SAIL is required to spend, in every financial year, at least 2% of the average net profits of SAIL made during the three
immediately preceding financial years in accordance with its Corporate Social Responsibility (CSR) Policy. Since, SAIL reported average net loss during the three immediately
preceding financial years; no amount is required to be spent for the Financial Year 2018-19.
In respect of SAIL:
However, against the budgeted amount of `30.00 crore (previous year `26.00 crore), the SAIL has spent an amount of `31.18 crore (previous year `25.70 crore) on CSR
activities during the Financial Year 2018-19 under the following heads:
(` crore)
Particulars 2018-2019 2017-2018
Education 12.03 7.65
Healthcare 4.84 5.11
Livelihood Generation 2.71 3.54
Women Empowerment 0.47 0.75
Drinking Water 0.03 1.44
Sanitation 0.73 0.47
Sports 0.79 0.79
Art & Culture 5.39 1.13
Rural Development 1.84 2.07
Social Security 0.35 0.33
Environment Sustainability 1.62 2.20
Project Identification and Monitoring 0.03 0.00
Capacity Building of Personnel 0.36 0.23
Total 31.18 25.70

Further, no expenditure has been made involving the related parties.

151
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
In respect of SUBSIDIARY:
Subsidiary has spent an amount of `0.56 crore (previous year `0.64 crore) on CSR activities during the Financial Year 2018-19 under the following heads:
Particulars 2018-2019 2017-2018
Education 0.13 0.06
Healthcare 0.09 0.09
Women Empowerment 0.11 0.08
Sanitation 0.17 0.19
Art & Culture 0.04 0.20
Others 0.02 0.02
Total 0.56 0.64

In respect of SAIL:
49.7 In compliance to General Financial Rule 238(5) & (6), the details of Grants received from Ministry of Steel and it's utilization for Research and Development Projects during
last three years are as under :
(` crore)
Year Grant Received from Central Government Grant Utilised (from Opening Balance and Current Year)

2018-19 1.47 1.02

2017-18 1.33 2.61
2016-17 2.32 2.15
49.8 Central Government grant of `105.75 crore (Rupees One Hundred Five Crore Seventy Five Lakh only) has been received during 2018-19 against sanctioned budgetary
provision of ` 295.79 crore for the purpose of upgradation of Ispat General Hospital, Rourkela to a Super Speciality Hospital and has been presented as a line item in the
Balance Sheet under the head "Other Liabilities- Deferred Income".
49.9 Information on leases as per Indian Accounting Standards (Ind AS) 17 on `Leases':
(a) SAIL has granted lease of properties to the employees and third parties for varying periods. The lease premium received up-front, after adjusting against book value, is
booked to other revenues. Renewal premium, ground rent and service charges of properties, pending for renewal given on lease are treated as income in the year of receipt.
(b) Finance lease liabilities (refer note 24 and 31) are secured by the related assets held under finance lease. Future minimum finance lease payments and present value of
minimum lease payments of the respective years are as follows:
(` crore)
Minimum Lease Payment Due
Within 1 year 1-5 years After 5 years Total
st
31 March, 2019
Lease payment 282.32 1062.56 1727.79 3072.67
Finance charge -163.38 -501.00 -948.79 -1613.17
Net present value 118.94 561.56 779.00 1459.50
31st March, 2018
Lease payment 261.85 915.89 2068.04 3245.78
Finance charge -156.70 -527.49 -1092.81 -1777.00
Net present value 105.15 388.40 975.23 1468.78
(c) Description of major leasing arrangements
Power plant
SAIL has accounted for certain power plants as finance lease under Appendix C of Ind AS 17 by virtue of the power purchase agreement with the supplier. Under the terms
of the power purchase agreement, SAIL shall continue to purchase power until the parties decide to terminate the agreement, which has been determined to be an un-
economic proposition considering the specialised nature and location of the asset.
Oxygen Plant
SAIL has accounted for certain oxygen plants as finance lease (or operating lease) under Appendix C of Ind AS 17 by virtue of the oxygen purchase agreement with the
supplier. The agreement to purchase oxygen is a 15 year fixed term agreement.
Mining land
SAIL has accounted for leasehold lands for mining as finance leases by virtue of its rights under the lease agreement after considering the right/ economic compulsion for
renewal.
(d) In respect of assets taken on lease/rent:
(i) SAIL has various operating leases for, office facilities, guest houses and residential premises for employees that are renewable on a periodic basis. Rental expenses for
these leases recognised in the Statement of Profit and Loss during the year In respect of SAIL: is `10.16 crore (`18.87 crore), In respect of SUBSIDIARY: is `0.03 crore
(`0.03 crore).
(ii) As at the Balance Sheet date, the future minimum lease payments under non-cancellable operating leases are:
(` crore)
As at 31st March, 2019 As at 31st March, 2018

Not later than one year 43.53 43.23

Later than I year and not later than 5 years 173.45 172.23
Later than 5 years 215.29 258.35

152
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
In respect of SAIL:
49.10 Contributions in cash and kind made for the period from the Financial Year 2006-07 to 2017-18 to Railway authorities for laying out railway line from Rajhara to Rowghat
would be recovered in cash at the rate of 7% per annum for 37 years on total contribution towards redemption of SAIL's contribution after commencement and fulfilment of
assured traffic from Rowghat mines. Management is of view that the criteria laid out in Memorandum of Understanding will be met and interest accrues from the date of
investment. The refund amount comprises principal and interest elements. Accordingly, the interest element has beencomputed and recognised as income during the year
amounting to `22.51 crore (till date `56.76 crore). As per the opinion of Expert Advisory Committee of The Institute of Chartered Accountants of India, such treatment of
recognition on time proportion basis is in order as in view of Management, no significant uncertainty exists regarding collectability and measurability of revenue.
49.11 The Cabinet Committee on Economic Affairs ( CCEA) in its meeting held on 27th October, 2016 has "in-principle" decided for Strategic Disinvestment of Alloy Steels Plant
(ASP), Durgapur; Visvesvaraya Iron and Steel Plant (VISP), Bhadravati and Salem Steel Plant (SSP), Salem. Further, in line with "in-principle" approval of Government of
India, SAIL Board in its meeting held on 9th February, 2017, approved the Strategic Disinvestment of ASP, VISP and SSP. SAIL appointed various Advisors to carry out the
process. Preliminary Information Memorandum (PIM) /Expression of Interest (EoI) for ASP has been published in News papers on 14th February, 2018. The EoI received
in response to the above have been annulled due to non-fulfilment of technical eligibility criteria. Fresh process in this regard has been initiated and revised PIM/EoI requests
of ASP, VISP and SSP will be issued after getting clearances from Government of India.
49.12 New Standards / Amendments to Existing Standard issued but not yet effective upto the date of issuance of SAIL's Financial Statement are disclosed below:
Ministry of Corporate Affairs ("MCA"), through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second
Amendment Rules, has notified the following new and amendments to Ind ASs which SAIL has not applied as they are effective from 01 April, 2019: SAIL will adopt new
standard and amendment to existing standards with effect from April 1, 2019.
a. Ind AS 116: Leases -Ind AS 116 will supersede the existing Ind AS 17. The new standard provides a comprehensive model to identify lease-arrangements and the
treatment thereof in the financial statements of both the lessee and lessor. The new standard requires entities to make more judgments and estimates (e.g., determining
when a customer has the right to direct the use of an identified asset, estimating the incremental rate of borrowing) and make more disclosures (e.g., discount rate,
weighted average lease term, other qualitative and quantitative information).
Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless
the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability
representing its obligation to make lease payments. Ind AS 17 required classifying leases as finance lease and operating lease, the same in not required under Ind AS 116.
Under Ind AS 116, a lessee measures right-of-use assets similarly to other non-financial assets (such as property, plant and equipment) and lease liabilities similarly to
other financial liabilities.
On initial application SAIL will recognise new assets and liabilities for its operating leases of premises and other assets. The nature of expenses related to those leases will
change from lease rent in previous periods to a) amortization change for the right-to-use asset, and b) interest accrued on lease liability.
Requirements with regard to lessor accounting are substantially similar to accounting requirements contained in Ind AS 17. Accordingly, a lessor will continue to classify
its leases as operating leases or finance leases, and to account for those two types of leases differently.
SAIL is in the process of evaluating the impact of changes, if any, on the financial statements for FY 2019-2020 onwards
b. Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments: Ministry of Corporate Affairs has notified Ind AS 12 Appendix 'C' Uncertainty over Income Tax
Treatments on March 30, 2019. According to the appendix, SAIL need to determine the probability of the relevant tax authority accepting each tax treatment, or SAIL of tax
treatments, that the companies have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the expected value of
the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates. SAIL is in the process of evaluating the impact
of changes, if any, on the financial statements for FY 2019-2020 onwards
c. Amendment to Ind AS 12 - Income taxes: Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, 'Income Taxes', in connection with accounting
for dividend distribution taxes accordingly an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity
according to where the entity originally recognised those past transactions or events. It is relevant to note that the amendment does not amend situations where the entity
pays a tax on dividend which is effectively a portion of dividends paid to taxation authorities on behalf of shareholders. Such amount paid or payable to taxation authorities
continues to be charged to equity as part of dividend, in accordance with Ind AS 12. SAIL is in the process of evaluating the impact of changes, if any, on the financial
statements for FY 2019-2020 onwards
d. Amendment to Ind AS 19 - plan amendment, curtailment or settlement- Ministry of Corporate Affairs issued amendments to Ind AS 19, 'Employee Benefits', On 30
March, 2019, in connection with accounting for plan amendments, curtailments and settlements. SAIL is in the process of evaluating the impact of changes, if any, on the
financial statements for FY 2019-2020 onwards
e. Ind AS 23 - Borrowing Costs -The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that
borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. SAIL is in the process of evaluating the
impact of changes, if any, on the financial statements for FY 2019-2020 onwards.
f. Ind AS 28 - Long-term Interests in Associates and Joint Ventures - The amendments clarify that an entity applies Ind AS 109 Financial Instruments, to long-term
interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. SAIL does not
currently have any long-term interests in associates and joint ventures.
g. Ind AS 103 - Business Combinations and Ind AS 111 - Joint Arrangements
The amendments to Ind AS 103 relating to re-measurement clarify that when an entity obtains control of a business that is a joint operation, it re-measures previously held
interests in that business. The amendments to Ind AS 111 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not re-
measure previously held interests in that business. SAIL will apply the pronouncement if and when it obtains control / joint control of a business that is a joint operation .
49.13 Based on materiality and comparability, in respect of temporarily discontinuation of operation of mines namely Barsua (w.e.f 17.05.2014), Bhawnathpur (w.e.f 29.04.2013)
and Punapani (w.e.f 01.03.2004.) due to environmental/forestry clearance issues, net expenditure during the year 2018-19, excluding depreciation, of `15.94 crore
(Previous Year ` 82.07 crore) has been included under Note No.40 'Other Expenses' in Statement of Profit and Loss (refer Note No 40). Head wise bifurcation is as under:
(` crore)
Account Head For the year ended 31st March, 2019 For the year ended 31st March, 2018
Salary and Wages 6.94 41.05
Stores and Spares 0.04 3.80
Power purchased 0.85 10.70
Repairs and Maintenance 0.35 8.36
Miscellaneous Expenses and Provisions 8.70 21.21
Total Expenditure 16.88 85.12
Less: Income 0.94 3.05
Net Expenditure 15.94 82.07

153
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
49.14 The Board of Directors of SAIL have recommended dividend @ ` 0.50 per equity share of ` 10 each i.e. 5% on the paid up share capital of the Company for the financial
year 2018-19, subject to approval of the shareholders in the forthcoming AGM of the Company.
50.1 DEFINED BENEFIT SCHEMES
50.1.1 General Description of Defined Benefit Schemes:
Gratuity: Payable on separation @15 days pay for each completed year of service to eligible employees who render continuous service of 5 years or more (for service
beyond 30 years, one month's salary for every completed year of service beyond 30 years). Maximum amount of `20 lakhs for executives & non-executives joined on or
after 1st July, 2014 and without any monetary limit for other non-executives, has been considered for actuarial valuation.
Leave Encashment: Payable on superannuation to eligible employees who have accumulated earned and half pay leave, subject to maximum limit of 300 days combined
for earned leave and half pay leave. Encashment of accumulated earned leave was also allowed up to 30 days once in a financial year up to 18th November, 2015 and
stopped thereafter.
Provident Fund: 12% of Basic Pay Plus Dearness Allowance, contributed to the Provident Fund Trusts by SAIL.
Post Retirement Medical Benefits: Available to retired employees at SAIL's hospitals and/or under the health insurance policy.
Post Retirement Settlement Benefits: Payable to retiring employees for settlement at their home town.
Long term service Award: Payable in kind on rendering minimum 25 years of service and also on superannuation.

In respect of SAIL:
50.1.2 Other disclosures, as required under Ind AS 19 on 'Employee Benefits', in respect of defined benefit obligations are:
(a) Reconciliation of Present Value of Defined Benefit Obligations* :
(` crore)
Sl. Particulars Gratuity Leave Post Post Long Term
No. Encashment Retirement Retirement Service
Medical Settlement Award
Benefits Benefit
i) Present Value of projected benefit obligations, 6339.98 2785.70 963.66 116.66 22.95
as at the beginning of the year. (6153.06) (2740.01) (936.21) (103.73) (23.14)
ii) Service Cost 274.04 71.21 - - 1.16
(288.50) (124.27) (-) (-) (1.52)
iii) Interest Cost 447.86 198.85 67.92 8.51 1.62
(443.02) (198.91) (67.61) (7.65) (1.70)
iv) Actuarial Gains(-) / Losses(+) -306.28 181.63 21.62 14.78 -1.67
(-328.47) (35.10) (76.25) (14.01) (-1.03)
v) Past Service Cost - - - - -
(582.04) (-) (-) (-) (-)
vi) Benefits Paid 737.19 268.81 116.14 6.43 2.78
(798.19) (312.56) (116.44) (8.73) (2.40)
vii) Present Value of projected benefit obligations as 6018.40 2968.57 937.07 133.52 21.27
at the end of the year. (i+ii+iii+iv+v-vi) (6339.96) (2785.73) (963.63) (116.66) (22.93)

(b) Reconciliation of Fair Value of Assets and Obligations

SAIL has funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets is mainly based on the information given by the insurance companies
through whom the investments have been made by the Fund. The reconciliation of fair value of assets of the Gratuity Fund and defined benefit gratuity obligations is as under:
(` crore)
Sl. No. Particulars 2018-19 2017-18

i) Fair Value of plan assets as at the beginning of the year 6308.85 5836.33

ii) Expected return on plan assets 45.27 23.11

iii) Actual SAIL's contribution 187.28 798.07

iv) Interest Income/Actuarial Gain/Loss(-) 473.17 449.45

v) Benefits payments 737.19 798.19

vi) Fair value of plan assets as at the end of the year 6277.42 6308.85

vii) Present value of defined benefit obligation [50.1.2)(a)(vii)] 6018.40 6339.96

viii) Net liability recognised in the Balance sheet (vii)-(vi) * -259.12 31.11

*SAIL does not expect to contribute any amount towards the expenses of Gratuity Fund during the year 2019-20, after considering the return on the investments.

The defined benefit obligations, other than gratuity, are non-funded.

154
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(c) Expenses recognised in the Statement of Profit & Loss for the Year :
(` crore)
Sl. Particulars Gratuity Leave Post Post Long Term
No. Encashment Retirement Retirement Service
Medical Settlement Award
Benefits Benefit

i) Service Cost 274.04 71.21 - - 1.16

(288.50) (124.27) (-) (-) (1.52)

ii) Interest Cost -25.31 198.85 67.92 8.51 1.62

(-6.34) (198.91) (67.61) (7.65) (1.70)

iii) Actuarial Gains -306.28 181.63 21.62 14.78 -1.67

(-)/Losses (-328.47) (34.85) (76.25) (14.01) (-1.03)

iv) Past Service Cost - - - - -

(582.04) ( - ) ( - ) ( - ) ( - )

v) Expected Return on Plan Assets 45.27 - - - -

(23.11) ( - ) ( - ) ( - ) ( - )

vi) Total (i+ii+iii+iv-v) -102.81 451.69 89.54 23.29 1.10

(512.60) (358.02) (143.86) (21.66) (2.19)

vii) Employees' Benefits Expenses :

a) Charged to Profit & Loss Account (Note 39) 247.60 447.61 67.92 23.29 1.10
(860.65) (357.55) (67.61) (21.66) (2.19)

b) Charged to Expenditure During Construction 1.14 4.07 - - -

(Note 5.1) (3.52) (0.47) (-) (-) (-)

c) Charged to OCI -351.54 - 21.62 - -

(-351.58) ( - ) (76.25) ( - ) ( - )

d) Charged to Profit & Loss Account- Other Expenses - - - - -

(-) (-) (-) (-) (-)

viii) Actual Return on Plan Assets 518.64

(472.50)

(d) Effect of half percentage point change in the Discount rate on Employees' Benefit schemes
(` crore)
Sl. Particulars 0.5 percentage point decrease 0.5 percentage point increase
No. in discount rate in discount rate

i) Gratuity -205.62 193.94

ii) Leave -122.26 114.24

iii) Post Retirement benefit -57.04 52.50

iv) Long Term Service Award -1.37 1.24

v) Retirement Travelling Allowance -5.88 6.10

(e) Effect of one percentage point change in the salary escalation rate on Employees' Benefit schemes
(` crore)
Sl. Particulars One percentage point decrease in One percentage point increase
No. salary escalation rate in salary escalation rate

i) Gratuity 119.37 -111.95

ii) Leave 115.08 -122.08

155
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(f) Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post-retirement medical benefits scheme
(` crore)
Sl. Particulars One percentage point increase One percentage point decrease
No. in medical inflation rate in medical inflation rate

i) Post-retirement medical benefits -49.59 45.50

(g) Investments of Gratuity Trust

Particulars % of Investment
As at 31.03.2019 As at 31.03.2018

Insurance Investments 88.68 86.25

Central Government Securities 1.38 1.36

State Government Securities 3.00 4.24

PSU Bonds 6.93 8.12

Cash at Bank 0.01 0.03

Total 100.00 100.00

(h) Actuarial Assumptions

Sl. Description As at 31st March, 2019 As at 31st March, 2018
No.

i) Discount Rate (per annum) 7.50 % 7.70%

ii) Mortality rate IALM (2006-08) Ultimate IALM (2006-08) Ultimate

iii) Withdrawal Rates (per annum) Executives & Non-executives- 0.10% to 0.50% Executives & Non-executives- 0.10% to 0.50%
depending upon the age depending upon the age

iv) Medical Cost Trend Rates (per annum) 5% for hospital cost and Nil for Medi-claim premium. 5% for hospital cost and Nil for Medi-claim premium.

v) Estimated Rate of Return on Plan Assets 7.50% 7.70%

vi) Salary Escalation Executives : 6% p.a. Executives : 6% p.a.

Non-Executives : 6% p.a. Non-Executives : 6% p.a.
All employees- 6% step-up after every 10 years of All employees- 6% step-up after every 10 years of
service starting 2017. service starting 2017.

The estimate of future salary increases considered in actuarial valuation, takes into account inflation rate,
seniority, promotion and other relevant factors

(i) Maturity Profile of Defined Benefit Obligations

(` crore)
Period As at 31st March, 2019

Upto 1 year 806.41

Between 1 to 2 years 817.96

Between 2 to 3 years 791.82

Between 3 to 4 years 751.69

Between 4 to 5 years 717.59

Between 5 to 10 years 2923.79

More than 10 years 4045.94

Total Undiscounted Payments related to Past Service 10855.20

Less: Discount for Interest 4836.80

Projected Benefit Obligation 6018.40

156
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
In Respect of SUBSIDIARY:
(a) Reconciliation of Present Value of Defined Benefit Obligations* : (` crore)
Sl. Particulars Gratuity Leave Post
No. Encashment Retirement
Medical
Benefits

i) Present Value of projected benefit obligations, as at the beginning of the year. 10.81 1.26 0.12

ii) Service Cost 0.30 0.09 -

iii) Interest Cost 0.71 0.07 -

iv) Actuarial Gains(-) / Losses(+) -0.18 0.44 -

v) Past Service Cost - - -

vi) Benefits Paid 2.49 0.61 -

vii) Present Value of projected benefit obligations as at the end of the year. 9.15 1.25 0.12
(i+ii+iii+iv-v-vi)

(b) Reconciliation of Fair Value of Assets and Obligations

Subsidiary has funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets is mainly based on the information given by the insurance companies
through whom the investments have been made by the Fund.
The reconciliation of fair value of assets of the Gratuity Fund and defined benefit gratuity obligations is as under:
(` crore)
Sl. No. Particulars 2018-19 2017-18

i) Fair Value of plan assets as at the beginning of the year 10.81 8.18

ii) Expected return on plan assets 0.80 0.61

iii) Actual Subsidiary's contribution 0.04 2.88

iv) Interest Income/Actuarial Gain/Loss -0.08 -0.87

v) Benefits payments -2.49 -

vi) Fair value of plan assets as at the end of the year 9.08 10.80

vii) Present value of defined benefit obligation 9.15 10.81

viii) Net liability recognised in the Balance sheet (vii)-(vi) 0.07 0.01

The reconciliation of fair value of assets of the Leave Encashment Fund and defined benefit Leave Encashment obligations is as under:
(` crore)
Sl. No. Particulars 2018-19 2017-18

i) Fair Value of plan assets as at the beginning of the year - -

ii) Expected return on plan assets - -

iii) Actual Subsidiary's contribution 1.84 -

iv) Interest Income/Actuarial Gain/Loss 0.02 -

v) Benefits payments -0.62 -

vi) Fair value of plan assets as at the end of the year 1.24 -

vii) Present value of defined benefit obligation 1.25 -

viii) Net liability recognised in the Balance sheet (vii)-(vi) 0.01 -

157
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(c) Expenses recognised in the Statement of Profit & Loss for the Year : (` crore)
Sl. Particulars Gratuity Leave
No. Encashment

i) Service Cost 0.30 0.09

ii) Interest Cost -0.09 0.07

iii) Actuarial Gains - 0.43

(-)/Losses

iv) Past Service Cost - -

v) Expected Return on Plan Assets - -

vi) Total (i+ii+iii+iv-v) 0.21 0.59

vii) Employees' Benefits Expenses :

a) Charged to Profit & Loss Account 0.20 0.59

b) Charged to Expenditure During Construction - -

c) Charged to OCI -0.10 -

d) Charged to Profit & Loss Account- Other Expenses - -

viii) Actual Return on Plan Assets excluding interest income 0.08 -

(d) Effect of 0.5 percentage point change in the Discount rate on Employees' Benefit schemes
(` crore)
Sl. Particulars 0.5 percentage point decrease 0.5 percentage point increase
No. in discount rate in discount rate

i) Gratuity 9.36 8.95

ii) Leave 1.29 1.22

(e) Effect of 0.5 percentage point change in the salary escalation rate on Employees' Benefit schemes
(` crore)
Sl. Particulars One percentage point decrease in One percentage point increase
No. salary escalation rate in salary escalation rate

i) Gratuity 9.36 8.95

ii) Leave 1.22 1.29

(f) Investments of Gratuity Trust / Leave Encashment Fund

(` crore)

Particulars % of Investment
As at 31.03.2019 As at 31.03.2018

Insurance Investments - Gratuity Trust 99.23 99.94

Insurance Investments - Leave Encashment Trust 99.23 -

(g) Actuarial Assumptions

Sl. Description As at 31st March, 2019 As at 31st March, 2018
No.

i) Discount Rate (per annum) 7.50% 7.70%

ii) Mortality rate IALM (2006-08) Ultimate IALM (2006-08) Ultimate

iii) Retirement Age

- Executives 58 Years 58 Years
- Non Executives 60 Years 60 Years

iv) Salary Escalation Executives : Executives :

6.25% p.a. 6.25% p.a.
Non-Executives : Non-Executives :
6.25% p.a. 6.25% p.a.

158
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
(h) Maturity profile of Defined Benefit Obligations
(` crore)
Period As at 31st March 2019
Gratuity Leave
Encashment

Upto 1 year 0.30 0.23

Between 1 to 2 years 1.92 0.13

Between 2 to 3 years 1.37 0.11

Between 3 to 4 years 1.10 0.12

Between 4 to 5 years 0.81 0.16

Between 5 to 10 years 4.10 0.77

More than 10 years 2.34 0.45

Total Undiscounted Payments related to Past Service 11.96 1.97

Less: Discount for Interest 2.81 0.72

Projected Benefit Obligation 9.15 1.25

51. GENERAL
51.1 Segment Reporting
i) Business Segments: The five Integrated Steel Plants and three Alloy Steel Plants, being manufacturing units, have been considered as primary business segments for
reporting under Ind AS108, Operating Segments' issued by Ministry of Corporate Affairs.
ii) In the opinion of the management, the captive mines are not a reportable business segment of SAIL as per Para 27 of Ind AS108, Operating Segments, issued by Ministry
of Corporate Affairs. As captive mines are supplying raw materials to various plants, the Mines have been treated as cost centre for accounting purpose.
51.2 Disclosures of provisions required by Indian Accounting Standards (Ind AS)37 'Provisions, Contingent Liabilities and Contingent Assets:
Brief Description of Provisions :
Mines afforestation costs - Payable on renewal (including deemed renewal)/forest clearance of mining leases to Government authorities, towards afforestation cost at mines for
use of forest land for mining purposes.
Mines closure costs - Estimated liability towards closure of mines, to be incurred at the time of cessation of mining activities.
Overburden backlog removal costs - To be incurred towards removal of overburden backlog at mines over the future years.
In Respect of SAIL:
(` crore)
Movement of provisions Mines afforestation costs Mines closure costs Over burden removal costs Total

Balance as at 1st April, 2018 202.09 67.30 117.16 386.55

Additions during the Year 0.24 12.74 41.66 54.64

Amounts utilised during the Year 0.25 (0.63) 0.00 (0.38)

Unused amount reversed during the Year 0.00 0.00 7.45 7.45

Balance as at 31st March, 2019 202.08 80.67 151.37 434.12

In respect of SUBSIDIARY:
(` crore)
Movement of provisions Mines afforestation costs Mines closure costs Over burden removal costs Total

Balance as at 1st April, 2018 0.03 0.03

Additions during the Year - -

Amounts utilised during the Year - -

Unused amount reversed during the Year - -

Balance as at 31st March, 2019 0.03 0.03

51.3 The figures of previous period have been re-grouped, wherever necessary, so as to conform to the current periods classification

159
Notes to Consolidated Financial Statements for the Year ended 31st March, 2019
52. OPERATING SEGMENT INFORMATION
(` crore)

PARTICULARS BSP DSP RSP BSL ISP ASP SSP VISL OTHERS INTER Total
SEGMENT
SALES

REVENUE
- External Sales
Current Year ended 31st March 2019 16,463.61 8,788.65 14,510.32 16,167.83 7,762.59 630.85 1,687.49 122.88 139.10 66,273.32
Previous Year ended 31st March 2018 15,994.93 7,168.64 12,210.22 14,039.97 6,811.00 442.88 1,344.11 142.18 147.07 58,301.00
- Inter segment sales
Current Year ended 31st March 2019 302.60 263.52 998.51 91.42 168.62 184.05 7.63 52.80 4,862.59 (6,931.74) -
Previous Year ended 31st March 2018 299.80 184.88 217.67 211.33 73.02 206.18 12.70 18.36 3,881.30 (5,105.24) -
- Total Revenue from sale of products
Current Year ended 31st March 2019 16,766.21 9,052.17 15,508.83 16,259.25 7,931.21 814.90 1,695.12 175.68 5,001.69 (6,931.74) 66,273.32
Previous Year ended 31st March 2018 16,294.73 7,353.52 12,427.89 14,251.30 6,884.02 649.06 1,356.81 160.54 4,028.37 (5,105.24) 58,301.00
RESULT
- Operating Profit / (-) Loss before Interest
and Exceptional items
Current Year ended 31st March 2019 1,608.91 586.63 2,109.74 2,290.86 303.46 (5.28) (120.50) (73.49) 393.23 7,093.56
Previous Year ended 31st March 2018 1,240.52 (58.57) 398.70 804.13 (329.50) (25.84) (118.24) (108.34) 466.83 2,269.69
- Finance cost
Current Year ended 31st March 2019 3,154.92
Previous Year ended 31st March 2018 2,822.75
- Exceptional items
Current Year ended 31st March 2019 389.40
Previous Year ended 31st March 2018 (26.43)
- Tax expenses
Current Year ended 31st March 2019 1,200.53
Previous Year ended 31st March 2018 (245.23)
- Profit / Loss (-) for the year
Current Year ended 31st March 2019 2,348.71
Previous Year ended 31st March 2018 (281.40)
OTHER INFORMATION
- Segment assets
Current Year ended 31st March 2019 31,549.20 6,548.52 20,076.32 15,292.37 18,856.76 572.30 2,856.49 419.41 21,780.93 1,17,952.30
Previous Year ended 31st March 2018 28,756.68 6,400.05 19,484.61 14,524.30 18,770.09 518.32 2,459.07 533.47 23,994.38 1,15,440.97
- Segment Liabilities (including Long Term
Borrowing)
Current Year ended 31st March 2019 7,709.02 2,451.24 4,421.29 3,418.32 1,693.55 198.85 368.95 66.57 57,978.35 78,306.14
Previous Year ended 31st March 2018 7,409.47 2,364.33 4,017.17 3,746.95 1,922.70 207.46 383.28 79.88 58,363.07 78,494.31
- Capital expenditure
Current Year ended 31st March 2019 1,304.73 139.23 1,012.87 1,121.28 147.21 2.95 9.18 1.48 210.09 3,949.02
Previous Year ended 31st March 2018 2,481.46 296.50 1,638.38 1,362.65 599.44 2.89 7.82 2.15 388.63 6,779.92
- Depreciation
Current Year ended 31st March 2019 692.29 200.20 754.72 611.36 746.73 9.08 99.23 7.22 264.51 3,385.34
Previous Year ended 31st March 2018 512.86 195.57 721.75 561.87 724.35 11.44 95.74 7.30 235.09 3,065.97
- Non Cash expenses other than
Depreciation
Current Year ended 31st March 2019 26.75 15.34 10.54 6.66 21.86 1.48 0.44 0.10 159.47 242.64
Previous Year ended 31st March 2018 19.00 11.34 15.26 56.00 36.79 2.00 14.17 2.81 58.83 216.20

160
 Annexure-VI to the Board’s Report

Independent Auditors' Report on Consolidated Financial Statements

Comments Management’s Replies
Report on the Audit of Consolidated Indian Accounting Standards (Ind AS) Financial Statements
Qualified Opinion
We have audited the accompanying Consolidated Ind AS Financial Statements of STEEL AUTHORITY OF INDIA LIMITED
(hereinafter referred to as "the Holding Company") and its subsidiaries (the Holding Company and its subsidiaries
together referred to as "the Group"), its associate and its jointly controlled entities, which comprise the Consolidated
Balance Sheet as at 31st March, 2019, the Consolidated Statement of Profit and Loss (including Other Comprehensive
Income), the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity for the year then
ended, and notes to the Consolidated Ind AS Financial Statements, including a summary of significant accounting
policies and other explanatory information (hereinafter referred to as "Consolidated Ind AS Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, and based on the
consideration of the branch auditors of the Holding Company on separate Financial Statements of the branches and
the financial statements / financial information provided to us of its associate and its jointly controlled entities, except
for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid
Consolidated Ind AS Financial Statements give the information required by the Companies Act, 2013 ("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 consolidated state of affairs of the Group as at 31st March, 2019 and its consolidated profit (including
consolidated other comprehensive income), its consolidated cash flows and the consolidated changes in equity for
the year ended on that date.
Basis for Qualified Opinion
The Holding Company has not provided for : In respect of item stated at (i), the Company's view is that
I. Demand for Entry tax in various states amounting to `1,637.35 crore as on 31st March, 2019 (Refer Note No. the Nine Judges Bench of Hon'ble Supreme Court, vide its
47.2(a)) and judgment dated 11th November, 2016, upheld the
II. Amount paid to Damodar Valley Corporation (DVC) in earlier years against bills raised for supply of power and constitutional validity of levy of Entry Tax by the States and
retained as advance to DVC by Bokaro Steel Plant of the Holding Company amounting to `587.72 crore as on has laid down principles/tests on levy of Entry Tax Acts in
31st March, 2019 (Refer Note No.47.2(b)); various States. The respective regular benches of the Apex
Court would hear the matters as per laid down principles.
Had the impact of all the above qualifications been considered, consolidated Total Comprehensive Income (net of
Pending decision by the regular benches of the Apex Court
tax) for the year ended 31st March, 2019 would have been `1256.07 crore against reported consolidated Total
on levy of entry tax in the States of Chhattisgarh, Odisha,
Comprehensive Income (net of tax) of ` 2703.61 crore, overstatement of other equity as on 31st March 2019 by
Jharkhand and in respect of the case pertaining to West
`1,447.54 crore, understatement of current liability by `2,225.07 crore and understatement of asset by `777.53
Bengal Taxation Tribunal, the Entry Tax demands under
crore.
dispute have been treated as contingent liabilities.
In respect of item stated at (ii), the Company's view is that
the cases are sub-judice and pending for adjudication before
the various judicial authorities for a long time. Further, the
civil appeal filed by DVC pertaining to tariff of 2004-09
against the Order of the Appellate Tribunal for Electricity
(APTEL), have been dismissed by the Hon'ble Supreme
Court of India vide its Order dated 3rd December, 2018.
Accordingly, State Electricity Regulatory Commission
(SERC) will finalise the retail tariff as directed by APTEL,
the financial implication of which can only be ascertained
after the Tariff fixation by SERC.
The above stated disputed demands, stated at (i) and (ii)
above, contested on valid and bonafide grounds, have been
treated as contingent liabilities as it is not probable that
present obligations exist as on 31st March, 2019. Therefore,
there is no adverse impact on Profit for the year.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143 (10) of the
Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of
the Consolidated Financial Statements section of our report. We are independent of the Group and its associate and its
jointly controlled entities in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with ethical requirements that are relevant to our audit of the Consolidated Ind AS Financial
Statements under the provisions of the Act and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified opinion.
Emphasis of Matter
We draw attention to the following in respect of the Holding Company:
I Pending negotiations with National Joint Committee for the Steel Industry (NJCS) for wage revision and in terms
of DPE office memorandum, in view of negative figures of average profit before tax of previous three years and
also based on the opinion of Expert Advisory Committee of ICAI, the Holding Company has not made any
provision towards wages revision (pending since 01.01.2017) for non-executive employees (Refer to Note
No.47.13); and
II Gross sales of the Holding Company include sales to Government agencies for `5,012.76 crore for the year
ended 31st March 2019 (cumulative upto 31st March, 2019 `17,252.66 crore) which is recognized on provisional
contract prices (Refer Note No. 49.2).
Our opinion is not modified in respect of this matter.

161
 Comments Management’s Replies

Information other than the Consolidated Financial Statements and Auditor's Report thereon
The Holding Company's Board of Directors is responsible for the other information. The other information comprises
the information included in the Management Discussion and Analysis, Board's Report including Annexures to Board's
Report, Business Responsibility Report and Corporate Governance Report, but does not include the Consolidated Ind
AS Financial Statements and our auditors' report thereon.
Our opinion on the Consolidated Ind AS Financial Statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the Consolidated Ind AS Financial Statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated
Ind AS Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information;
we are required to report that fact. We have concluded that such material misstatement of the other information exists
in respect of matters described in the Basis for Qualified Opinion section above.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Consolidated Ind AS Financial Statements of the current period. These matters were addressed in the context of our
audit of the Consolidated Ind AS Financial Statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. In addition to the matters described in the Basis for Qualified Opinion and
Emphasis of Matter Sections we have determined the matters described below to be the key audit matters to be
communicated in our report.

S.No. Key Audit Matter Auditors' Response to Key Audit Matters

In respect of the Holding Company
1. Provisions and Contingent Liabilities
The Holding Company is subject to a number of legal, In order to get a sufficient understanding of
regulatory and tax cases for which final outcome litigations and contingent liabilities, we have
cannot be easily predicted and which could potentially discussed the process of identification
result in significant liabilities. implemented by the Management for such
Management's disclosures with regards to contingent provisions through various discussions with
liabilities are presented in Note No. 47 read with Note Holding Company's legal and finance
No. 3.17 to the Consolidated Ind AS Financial departments.
Statements. We read the summary of litigation matters
The assessment of the risks associated with the provided by the Holding Company's Legal and
litigations is based on complex assumptions. This Finance Team.
require use of judgment to establish the level of We read, where applicable, external legal or
provisioning, increases the risk that provisions and regulatory advice sought by the Holding
contingent liabilities may not be appropriately provided Company.
against or adequately disclosed. Accordingly, this We discussed with the Company's Legal and
matter is considered to be a key audit matter. Finance Team certain material cases noted in
the repor t to determine the Company's
assessment of the likelihood, magnitude and
accounting of any liability that may arise.
In light of the above, we reviewed the amount of
provisions recorded and exercised our
professional judgment to assess the adequacy
of disclosures in the Consolidated Ind AS
financial statements.
2. Tax Expenses
Provision for current tax (including Minimum Alternate Considered the taxable profits of the Holding
Tax on Book Profits) is dependent upon availability of Company and taxes paid, obtained details of
brought forward losses, depreciation as per income carry forward losses and details of estimate of
tax/ books of accounts, statement of profit and loss, taxable incomes for future periods.
balance sheet, etc. Tested period over which deferred tax assets on
Deferred Tax Assets on unabsorbed depreciation and such unabsorbed losses would be recovered
carry forward losses are to be recognized to the extent against future taxable income including
that it is probable that future taxable profit will be Management's underlying assumptions.
available against which the unused tax losses and Reviewed on overall basis, internally as well as
unused tax credits can be utilized. the opinions given by legal/ tax exper ts on
Refer Note No. 12 and 48.6 to the Consolidated Ind various issues along with various judicial/
AS Financial Statements. jurisdictional pronouncements available on
certain issues.

3. Property, Plant & Equipment and Intangible Assets

There are areas where Management judgements We assessed the controls in place, evaluated
impacts the carrying value of property, plant and the appropriateness of capitalization process,

162
 Comments Management’s Replies

S.No. Key Audit Matter Auditors' Response to Key Audit Matters

equipment, intangible assets and their respective performed tests of details on costs capitalized,
depreciation and amortization amounts. These include the timeliness of the capitalization of assets and
the decision to capitalize or expense costs; the annual the de-recognition criteria for assets retired from
asset life review; the timeliness of the capitalization active use.
of assets and the use of management assumptions
In performing these procedures, we reviewed
and estimates for the determination or the
the judgements made by Management including
measurement and recognition criteria for assets
the nature of underlying costs capitalized;
retired from active use. Due to the materiality in the
determination of realizable value of the assets
context of the balance sheet of the Holding Company
retired from active use; the appropriateness of
and the level of judgements and estimates required,
asset life applied in the calculation of
we consider this to be a key audit matter.
depreciation; useful lives of assets as per the
technical assessment of the Management and
external technical experts. We have observed
that there are no material changes.

4. Capital Work-in- Progress

The Holding Company is in the process of executing We performed an understanding and evaluation
various projects like installation and expansion of of system of internal control over the capital
mills, facilities, etc. These projects take a substantial work-in-progress, with reference to identification
period of time to get ready for intended use. Due to and testing of key controls.
the materiality in the context of the Balance sheet of We assessed the progress of the projects and
the Holding Company and the level of judgements the intention of the Management to carry forward
and estimates required, we consider this to be a key and bring the asset to its state of intended use.
audit matter.

Management's Responsibility for the Consolidated Ind AS Financial Statements

The Holding 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 Consolidated Ind AS Financial Statements that give a true
and fair view of the consolidated financial position, consolidated financial performance (including consolidated other
comprehensive income), consolidated changes in equity and consolidated cash flows of the Group in accordance
with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under Section 133 of the Act, read with of the Companies (Indian Accounting Standards) Rules, 2015 (as amended).
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding the assets of the Group 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 Consolidated Ind AS Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Consolidated Ind AS Financial Statements, Management of the Holding Company is responsible for
assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless Management either intends to liquidate the companies
under the Group or to cease operations, or has no realistic alternative but to do so.
The Board of Directors of the Holding Company is also responsible for overseeing the Group's financial reporting
process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the Consolidated Ind AS Financial Statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these Consolidated Ind AS Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Consolidated Ind AS Financial Statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the Holding Company and the subsidiary companies incorporated in India
have adequate internal financial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by Management of the Holding Company.
• Conclude on the appropriateness of Management's use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty

163
 Comments Management’s Replies

exists, we are required to draw attention in our auditor's report to the related disclosures in the Consolidated Ind
AS Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Consolidated Ind AS Financial Statements, including
the disclosures, and whether the Consolidated Ind AS Financial Statements represent the underlying transactions
and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Consolidated Ind AS Financial Statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Other Matters
a) We did not audit the financial statements/financial information of Two subsidiaries (detailed in Annexure B),
whose financial statements/financial information reflect total assets of ` 202.39 crore as at 31st March, 2019,
total revenues of `201.61 crore and the net cash flows amounting to `16.47 crore for the year ended on that
date, as considered in the Consolidated Ind AS Financial Statements. The Consolidated Ind AS Financial Statements
also include the Group's share of net profit `183.98 crore for the year ended 31st March, 2019 in respect of its
Eight jointly controlled entities (detailed in Annexure C), whose financial statements/financial information have
not been audited by us. These financial statements/financial information have been audited by other auditors
whose reports have been furnished to us by the Management and our opinion on the Consolidated Ind AS
Financial Statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries
and jointly controlled entities, and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it
relates to the aforesaid subsidiaries and jointly controlled entities is based solely on the reports of the other
auditors.
b) We did not audit the financial statements/financial information of Two subsidiaries (detailed in Annexure B),
whose financial statements/financial information reflect total assets of `Nil as at 31st March, 2019, total revenues
of ` Nil and net cash flow amounting to `Nil for the year ended on that date, as considered in the consolidated Ind
AS Financial Statements. The Consolidated Ind AS Financial statements also include the Group's share of net
profit `34.42 crore and `0.21 crore for the year ended 31st March, 2019, as considered in the Consolidated Ind
AS Financial statements, in respect of Twelve jointly controlled entities and One Associate respectively (detailed
in Annexure C), whose financial statements/financial information have not been audited by us. These financial
statements/financial information are unaudited and have been furnished to us by the Management and our
opinion on the Consolidated Ind As Financial Statements, in so far as it relates to the amounts and disclosures
included in respect of these subsidiaries, jointly controlled entities and associate, and our report in terms of sub-
section (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, jointly controlled entities
and associate is based solely on such unaudited financial statements.
c) We did not audit the financial statements/financial information of One jointly controlled entity (detailed in Annexure
C) whose financial statements/financial information is not available. In the absence of their Financial statements
the Group's share of net profit / loss for the year ended 31st March, 2019 has not been considered in the
Consolidated Ind AS Financial statements.
Our opinion above on the consolidated financial statements, and our report on Other Legal and Regulatory
Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and
the reports of the other auditors and the financial statements/financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, based on our audit and on the consideration of the reports of the other
auditors on separate financial statements and other financial information of joint operations, subsidiaries, associates
and jointly controlled companies incorporated in India referred to in other matters above, we report, to the extent
applicable, 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 of the aforesaid consolidated Ind AS Financial Statements;
(b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our
opinion proper books of accounts as required by law relating to preparation of the aforesaid consolidated
IndAS Financial Statements have been kept so far as appears from our examination of those books and the
report of the other auditors;
(c) The reports on the accounts of the Holding Company, Subsidiaries, Associate and Jointly Controlled
Companies incorporated in India, audited under Section 143(8) of the Act by other auditors have been sent
to us/ other auditors as applicable and have been properly dealt with in preparing this report;
(d) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Consolidated
Other Comprehensive Income), the Consolidated Cash Flow Statement and the Consolidated Statement of
Changes in Equity dealt with by this Report are in agreement with the relevant books of account maintained
for the purpose of preparation of Consolidated Ind AS Financial Statements;

164
 Comments Management’s Replies
(e) Except for the effects of the matters described in the Basis for Qualified Opinion paragraph above, in our
opinion, the aforesaid Consolidated Ind AS Financial Statements comply with the Indian Accounting Standards
(Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued there under;
(f) The matters described in the Basis for Qualified Opinion section above, in our opinion, may not have an
adverse effect on the functioning of the Group;
(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 Group;
(h) With respect to the adequacy of the internal financial controls over financial reporting and the operating
effectiveness of such controls, refer to our separate Report in Annexure - A, which is based on the auditors'
reports of the Holding Company, subsidiary companies, associate and jointly controlled entities incorporated
in India. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Holding Company/ subsidiary companies / associate company/ jointly controlled companies incorporated
in India, internal financial controls over financial reporting; 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 (as amended), in our opinion and to the best of our information
and according to the explanations given to us:
i. Except for the possible effect of the matter described in paragraph on the basis of qualified opinion
above, the consolidated Ind AS Financial Statements disclose the impact of pending litigations on the
consolidated financial position of the Group, its associate company and jointly controlled entities
(Refer Note No. 47 and 48.5);
ii. The Group, its associate and jointly controlled entities did not have any material foreseeable losses on
long-term contracts including derivative contracts; and
iii. The Matured Deposits have already been claimed by the successors/relatives of the individuals but The Matured Deposits have already been claimed by the
are pending for submission of document of proof of legal heir by the claimants. Appropriate procedure successors/relatives of the individuals but are pending for
is being followed for refunding the Matured Deposits to the legal heirs. submission of document of proof of legal heir by the
claimants. Appropriate procedure is being followed for
refunding the Matured Deposits to the legal heirs.

2. 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 Act is not applicable to the Government Companies.

For Singhi & Co. For Chatterjee & Co. For and on behalf of Board of Directors
Chartered Accountants Chartered Accountants
Firm Registration No. 302049E Firm Registration No. 302114E

Sd/- Sd/- Sd/-

(Shrenik Mehta) (Bedanta Bhattacharya) (Anil Kumar Chaudhary)
Partner Partner Chairman
M.No. 063769 M.No. 060855

For A.K.Sabat & Co. For V.K. Dhingra & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 321012E Firm Registration No. 000250N

Sd/- Sd/-
(A.K. Sabat) (Vipul Girotra)
Partner Partner
M.No.030310 M.No. 084312

Place : New Delhi Place : New Delhi

Dated : 30th May, 2019 Date : 28th June, 2019

165
Annexure-A to the Independent Auditors' Report on Consolidated Financial Statements
Comments Management’s Replies

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Steel Authority of India
Limited (hereinafter referred to as "the Holding Company") and its subsidiaries (together referred to as
"the Group"), its associate and its jointly controlled entities as of 31 March, 2019 in conjunction with
our audit of the Consolidated Ind AS Financial Statements of the Group for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The respective Boards of Directors of the Holding Company, its subsidiaries, its associate and its
jointly controlled entities are responsible for establishing and maintaining internal financial reporting
considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants
of India ('ICAI'). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct
of its business, including adherence to Group's policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting records, and the
timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors' Responsibility
Our responsibility is to express an opinion on internal financial controls over financial reporting of the
Holding Company, its subsidiaries, its associate and its jointly controlled entities incorporated in India,
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards
and the Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls over financial
reporting was established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor's judgment, including the assessment of the risks of material
misstatement of the Consolidated Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Group's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated
Ind AS Financial Statements for external purposes in accordance with generally accepted accounting
principles. A company's internal financial control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Group; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of Consolidated Ind AS
Financial Statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the Group are being made only in accordance with authorisations of management
and directors of the group companies; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or disposition of the Group's assets that could have
a material effect on the Consolidated Ind AS Financial Statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods are subject to the risk that the internal
financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.

166
 Comments Management’s Replies
Opinion
In our opinion, the Holding Company, its subsidiaries incorporated in India, wherever
reported by the auditors of those entities have, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at 31st March 2019,
based on the internal control over financial reporting criteria established by the
Group Companies considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.
Other Matter
Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and
operating effectiveness of the internal financial controls over financial reporting in
so far as it relates to 2 subsidiary companies which are companies incorporated in
India, is based on the corresponding reports of the auditors of such companies.

For Singhi & Co. For Chatterjee & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 302049E Firm Registration No. 302114E

Sd/- Sd/-
(Shrenik Mehta) (Bedanta Bhattacharya)
Partner Partner
M.No. 063769 M.No. 060855

For A.K.Sabat & Co. For V.K. Dhingra & Co.

Chartered Accountants Chartered Accountants
Firm Registration No. 321012E Firm Registration No. 000250N

Sd/- Sd/-
(A.K. Sabat) (Vipul Girotra)
Partner Partner
M.No.030310 M.No. 084312

Place : New Delhi

Dated : 30th May, 2019

Annexure B to the Independent Annexure C to the Independent Auditors' Report on Consolidated Financial
Auditors' Report on Consolidated Statements
Financial Statements
List of subsidiaries List of Jointly Controlled Entities and Associates
1. Jointly Controlled Entities
i. Audited Financial Statements: Bokaro Power Supply Company (P) Limited
Subsidiaries NMDC SAIL Limited
SAIL Rites Bengal Wagon Industry Pvt Ltd
Bhilai Jaypee Cement Limited
SAIL SCI Shipping Private Limited
SAIL-Bansal Service Centre Ltd
NTPC-SAIL Power Company Ltd
Audited Financial Statements SAIL Kobe Iron India Private Limited
International Coal Ventures Pvt Limited
SAIL SCL Kerala Limited
Chhattisgarh Mega Steel Limited mjunction Services Ltd
SAL SAIL JVC Limited
S&T Mining Company Private Limited
SAIL Refractory Company Limited TMT SAL SAIL JV Limited
SAIL & MOIL Ferro Alloys Pvt Ltd
VSL-SAIL JVC Limited
GEDCOL SAIL Power Corporation limited
iii. Financial Statements not available
Financial Statements Not Available: ii. Unaudited Financial Statements / information
Prime Gold- SAIL JVC
Abhinav SAIL JVC Limited
SAIL Sindri Projects Limited SAIL Bengal Alloy Casting Private Limited 2. Associates- Un-audited
SAIL -Jagdishpur Power Plant Limited Bastar Railway Private Limited Almora Magnesite Limited

167
Comments of C&AG Annexure-VII to the Board's Report
COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THE
COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF STEEL AUTHORITY OF INDIA LIMITED FOR THE YEAR ENDED
31 MARCH 2019
The preparation of Consolidated Financial Statements of Steel Authority of India Limited for the year ended 31 March 2019 in accordance with the financial reporting framework
prescribed under the Companies Act, 2013 is the responsibility of the management of the company. The Statutory Auditors appointed by the Comptroller and Auditor General of India
under Section 139(5) read with Section 129(4) of the Act are responsible for expressing opinion on the financial statements under section 143 read with Section 129(4) of the Act based
on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated
30 May, 2019.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 143(6)(a) read with Section 129(4) of the Act of the Consolidated
Financial Statements of Steel Authority of India Limited for the year ended 31 March, 2019 which include the Standalone Financial Statements of Steel Authority of India Limited; its two1
subsidiaries, and seven2 joint venture companies all controlled by the government and/or government companies. Supplementary audit under Section 143(6)(a) of the Act of two
subsidiary company3, four4 such joint venture companies and one associate company5 was not completed pending finalisation of their accounts and/or audit as on date. Under Section
143(6)(a) of the Act, I am not required to conduct supplementary audit of the financial statements of ten6 companies not controlled by the government but included in the consolidated
financial statement. Financial Statements of one7 subsidiary and one8 joint venture company controlled by the government and two9 companies not controlled by the government were not
consolidated. (Details are enclosed as Annexure-I). Supplementary audit of Consolidated Financial Statements has been carried out independently without access to the working papers
of the Statutory Auditors and is limited primarily to inquiries of the Statutory Auditors and company personnel and a selective examination of some of the accounting records. On the basis
of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors' Report.

For and on the behalf of the Comptroller & Auditor General of India

Sd/-
Place : Ranchi (Indu Agrawal)
Dated : 27th July, 2019 Principal Director of Commercial Audit & Ex-Officio Member, Audit Board, Ranchi
1 5
SAIL Refractory Company Ltd. and Chhattisgarh Mega Steel Ltd. Almora Magnesite Limited.
2
NTPC SAIL Power Company Ltd., SAIL & MOIL Ferro Alloys Pvt. Ltd., SAIL SCI Shipping Pvt. 6
M Junction Services Ltd., Bhilai Jaypee Cement Ltd., S&T Mining Co. Pvt. Ltd., SAIL Kobe
Ltd., International Coal Venture Ltd., SAIL RITES Bengal Wagon Industry Pvt. Ltd., NMDC Iron India Pvt. Ltd., SAL SAIL JVC Ltd., TMT SAL SAIL JVC Ltd., Prime Gold-SAIL JVC Ltd.,
SAIL Ltd. and GEDCOL SAIL Power Corporation Limited. SAIL Bansal Services Ltd., Abhinav SAIL JVC Ltd., VSL SAIL JVC Ltd.
3 7
SAIL Jagdishpur Power Plant Ltd. and SAIL Sindri Projects Ltd. IISCO Ujjain Pipe & Foundry Company Ltd.
4 8
Bokaro Power Supply Co. Pvt. Ltd., SAIL SCL Kerala Ltd., SAIL-Bengal Alloy Casting Pvt. Ltd. North Bengal Dolomite Limited.
and Baster Railway Pvt. Ltd. 9
Romelt SAIL (India) Limited and UEC SAIL Information Technology Limited.

Annexure-1
Statement showing name of Subsidiary, Joint Venture and Associate Companies of SAIL and status of consolidation of accounts (2018-19)
Sl. Name of the related party and nature of relationship Whether accounts were Whether under the
No. consolidated jurisdiction of C&AG
Parent Company
Steel Authority of India Limited Yes Yes
Subsidiary Companies
1 SAIL- Jagdishpur Power Plant Limited Yes Yes
2 SAIL Refractory Company Limited Yes Yes
3 SAIL Sindri Projects Limited Yes Yes
4 Chhattisgarh Mega Steel Limited Yes Yes
5 IISCO Ujjain Pipe & Foundry Co. Limited No Yes
Joint Venture Companies
6 NTPC-SAIL Power Company Ltd. Yes Yes
7 Bokaro Power Supply Company Private Limited Yes Yes
8 SAIL - Bengal Alloy Casting Private Limited Yes Yes
9 SAIL & MOIL Ferro Alloys Private Limited Yes Yes
10 SAIL SCI Shipping Private Limited Yes Yes
11 International Coal Ventures Limited Yes Yes
12 SAIL SCL Kerala Limited Yes Yes
13 SAIL-RITES Bengal Wagon Industry Pvt. Ltd. Yes Yes
14 NMDC SAIL Limited Yes Yes
15 Bastar Railway Private Limited Yes Yes
16 GEDCOL SAIL Power Corporation Limited Yes Yes
17 North Bengal Dolomite Limited No Yes
18 Mjunction Services Limited Yes No
19 Bhilai Jaypee Cement Limited Yes No
20 S & T Mining Company Private Limited Yes No
21 SAIL Kobe Iron India Private Limited Yes No
22 SAL SAIL JVC Limited Yes No
23 TMT SAL SAIL JVC Limited Yes No
24 Prime Gold-SAIL JVC Limited Yes No
25 SAIL Bansal Service Centre Limited Yes No
26 Abhinav-SAIL JVC Limited Yes No
27 VSL SAIL JVC Limited Yes No
28 Romelt-SAIL (India) Limited No No
29 UEC-SAIL Information Technology Limited No No
Associate Company
30 Almora Magnesite Limited Yes Yes

168
 Annexure-VIII to the Board's Report

Form AOC-1
[Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014]
Statement containing salient features of the financial statement
of subsidiaries/associate companies/joint ventures
Part "A": Subsidiaries

Sl. Particulars Details

No.
1. Name of the subsidiary SAIL Refractory SAIL Jagdishpur SAIL Sindri Chhattisgarh
Company Power Plant Projects Limited Mega Steel
Limited Limited Limited
2. Reporting period for the subsidiary concerned, Not applicable Not applicable Not applicable Not applicable
if different from the holding company's
reporting period
3. Reporting currency and Exchange rate as on the Not applicable Not applicable Not applicable Not applicable
last date of the relevant Financial year in the case
of foreign subsidiaries
` in crore
4. Share capital 0.10 0.05 0.05 0.05
5. Reserves & surplus 140.00 (-)0.05 (-) 0.05 (-)0.03
6. Total assets 202.36 0.00 0.00 0.03
7. Total Liabilities 62.26 * * *
8. Investments - - - -
9. Turnover 196.95 - - -
10. Profit before taxation 31.20 - - (-)0.01
11. Provision for taxation 9.39 - - -
12. Profit after taxation 21.81 - - (-)0.01
13. Proposed Dividend - - - -
14. % of shareholding 100 100 100 74

*Amount less than `50,000/-.

Note: The Company holds 30,00,000 equity shares of `10/- each in IISCO Ujjain Pipe & Foundry Co. Ltd. The Hon'ble High Court of Calcutta had directed winding-
up of the Company with effect from 10th July, 1997 and the official liquidator has taken over the possession of the assets of the Company. The liquidator, after
disposing the assets of the Company, is in the process of settling the outstanding dues. The cumulative loss of IISCO Ujjain Pipe & Foundry Co. Ltd. upto 10th
July'97 was `17.05 crore.

For and on behalf of Board of Directors

Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN:03256818

Place : New Delhi

Date : 30th May, 2019

169
 Part B: Associate Companies and Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
For the Year ended 31st March, 2019
Sl. Name of the Associate /Joint Ventures Latest Shares of Amount of Extent Description Revenue Net worth Profit/ Consider- Not
Audited Associate / Investment of of how from attributable (Loss) (1) ed in Consider-
Balance Joint in Holding there is operations to for the Consoli- ed in
Sheet Ventures Associates / (%) significant shareholding year dation Consoli-
Date held by Joint influence as per (` crore) (` crore) dation
the Venture latest (` crore)
company (` crore) audited
on the Balance
year end Sheet
(` crore)

Joint Ventures 1 2 3 4 5 6 7 8 9 10
1 NTPC SAIL Power Company Ltd. 31-03-2019 490250050 490.25 50.00% Note-1 2498.24 362.33 181.17 181.17
2 Bokaro Power Supply Co. Pvt. Ltd.* 31-03-2018 124025000 124.03 50.00% Note-1 855.37 65.17 32.59 32.59
3 Mjunction Services Limited 31-03-2019 4000000 4.00 50.00% Note-1 279.13 41.57 20.79 20.79
4 SAIL Bansal Service Centre Ltd * 31-03-2018 3200000 3.20 40.00% Note-1 1.81 0.27 0.11 0.16
5 Bhilai Jaypee Cement Limited * 31-03-2018 98718048 52.51 26.00% Note-1 13.79 -41.65 -10.83 -30.82
6 S& T Mining Co. Pvt. Limited 31-03-2019 12941400 12.94 50.00% Note-1 -9.21 -2.69 -1.35 -1.35
7 International Coal Ventures Private Limited 31-03-2019 693759279 693.76 47.82% Note-1 2156.10 -114.21 -54.62 -59.59
8 SAIL-MOIL Ferro Alloys Private Limited 31-03-2019 100000 0.10 50.00% Note-1 -14.07 -1.60 0.00 -1.60
9 SAIL SCI Shipping Pvt. Limited 31-03-2019 100000 0.10 50.00% Note-1 0.13 0.00 0.00 0.00
10 SAIL SCL Kerala Limited * 31-03-2018 13017801 18.75 49.26% Note-1 -72.84 -16.49 0.00 -16.49
11 SAIL RITES Bengal Wagaon Industry Pvt. Limited 31-03-2019 24000000 24.00 50.00% Note-1 42.00 16.48 8.24 8.24
12 SAIL Kobe Iron India Pvt. Limited* 31-03-2018 250000 0.25 50.00% Note-1 0.51 0.00 0.00 0.00
13 SAL SAIL JVC Limited * 31-03-2018 - - 26.00% Note-1 -0.10 -0.01 0.00 -0.01
14 TMT SAL SAIL JV Limited * 31-03-2018 - - 26.00% Note-1 -0.02 -0.01 0.00 -0.01
15 SAIL-BENGAL Alloy Castings Private Limited* 31-03-2018 10000 0.01 50.00% Note-1 -0.02 0.00 0.00 0.00
16 Prime Gold-SAIL JVC Limited* 31-03-2018 4680000 4.68 26.00% Note-1 21.71 0.00 0.00 0.00
17 VSL SAIL JVC Limited * 31-03-2018 1297780 1.30 20.58% Note-1 4.97 -0.43 -0.09 -0.34
18 Abhinav SAIL JVC Ltd* 31-03-2018 - - 26.00% Note-1 -0.20 -0.05 0.00 -0.05
19 Romelt SAIL (India) Ltd @ 63000 0.06 Note-1 Accounts - - - -
not available
20 UEC SAIL Information Technology Limited # - - Note-1 -do- - - - -
21 North Bengal Dolomite Ltd # 97900 0.98 Note-1 -do- - - - -
22 N.E. Steel & Galvanising Pvt. Limited # - - 49.00% Note-1 -do- - - - -
23 NMDC SAIL Limited* 31-03-2018 24500 0.02 49.00% Note-1 0.00 -0.04 -0.02 -0.02
24 Bastar Railway Pvt Limited* 31-03-2018 35232600 35.23 12.00% Note-1 292.87 1.77 0.21 1.56
25 GEDCOL SAIL Power Corporation Limited 31-03-2019 260000 0.26 26.00% Note-1 0.77 -0.23 -0.06
Associate
1 Almora magnesite Limited* 31-03-2018 400000 0.40 20.00% Note-2 8.60 1.07 0.21 0.86

1. Voting power as per Joint Venture Agreement

2. Holds 20% share capital
* Based on the Unaudited Accounts for the Year 2018-19
@ Operations under suspension
# Companies under winding up/liquidation

For and on behalf of Board of Directors

Sd/- Sd/-
(M.C. Jain) (Anil Kumar Chaudhary)
ED (F&A) and Company Secretary Chairman
DIN:03256818

Place : New Delhi

Date : 30th May, 2019

170
 Annexure-IX to the Board’s Report
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March, 2019
FORM No. MGT-9
[Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the
Companies (Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN : L27109DL1973GOI006454
ii) Registration Date : 24th January 1973
iii) Name of the Company : Steel Authority of India Limited
iv) Category / Sub-Category of the Company : Public company / Limited by Shares
v) Address of the Registered office and : Ispat Bhawan, Lodi Road, New Delhi-110003. Contact No. +91-11-24367481.
contact details Fax No. +91-11-24367015. Email: [email protected]
vi) Whether listed company : Yes
vii) Name, Address and Contact details of : MCS Share Transfer Agent Limited, F-65, Okhla Industrial Area, Phase- I,
Registrar and Transfer Agent New Delhi-110020. Phone No. +91-11-41406149. Fax No. +91-11-41709881.
Email: [email protected]
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated:
Sl. No. Name and Description of main products / services NIC Code of the % to total turnover
Product/ Service of the company

1 Flat Products (HR Coils, HR Plates, CR Coils, Pipes 52

and Electric Sheets, etc.) 330
2 Long Products (TMT Bars, Wire Rods, etc.) 42

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl. No. Name and Address of the Company CIN/GLN Holding/ % of Applicable
Subsidiary/ shares Section
Associate held

1. SAIL-Jagdishpur Power Plant Limited, U40106DL2011GOI219901 SUBSIDIARY 100 2(87)

Ispat Bhawan, Lodhi Road, New Delhi.
(Under Process of Striking Off)
2. SAIL Refractory Company Limited, Salem Steel Plant, U14200TZ2011GOI017357 SUBSIDIARY 100 2(87)
Salem, Tamil Nadu-636013 IN
3. SAIL Sindri Projects Limited U27320JH2011GOI015168 SUBSIDIARY 100 2(87)
Chasnala - 828135, Jharkhand, IN
(Under Process of Striking Off)
4. Chhattisgarh Mega Steel Limited U27100CT2015GOI001627 SUBSIDIARY 74 2(87)
Ispat Bhawan, Bhilai, Sector 1, Durg,
Chhattisgarh-490001 IN
5. IISCO Ujjain Pipe & Foundry Co. Limited U28113WB1964PLC026148 SUBSIDIARY 100 2(87)
50, Chowringhee Road, Kolkata-700071,
West Bengal, IN (Under Liquidation)
6. Almora Magnesite Limited U26941UR1971PLC003453 ASSOCIATE 20 2(6)
Magnesite House, Ranidhara Road, Almora-263601,
Uttrakhand, IN
7. NTPC-SAIL Power Company Ltd., U74899DL1999PLC098274 JOINT VENTURE 50 2(6)
4th Floor, NBCC Tower, 15 Bhikaji Cama Place,
New Delhi-110066 IN.
8. Bokaro Power Supply Company Pvt. Ltd. U40300DL2001PTC112074 JOINT VENTURE 50 2(6)
Ispat Bhawan, Lodi Road, New Delhi-110003, IN
9. North Bengal Dolomite Limited U14109WB1980PLC033031 JOINT VENTURE 50 2(6)
28-B, Shakeshkpeare Sarani, "Neelamber",
Flat No.10A, 10th Floor, Kolkata-700017,
West Bengal, IN. (Strike Off)

171
10. UEC SAIL Information Technology Ltd. U74899DL1995PLC064072 JOINT VENTURE 40 2(6)
C/o I.M. Puri & Co., C-30, Chiragh Enclave,
New Delhi-110048.
(Under Liquidation)
11. Romelt-SAIL (India) Limited U74899DL1997PLC090025 JOINT VENTURE 15 2(6)
No.25/2, Madanpur, Khadar, Near Sunder Public School
Opp. F Block, New Delhi-110 076
12. mjunction Services Limited U00000WB2001PLC115841 JOINT VENTURE 50 2(6)
Godrej Waterside, 3rd Floor, Tower-I, Plot-V, Block DP,
Sector-V, Salt Lake, Kolkata-700091, West Bengal, IN
13. SAIL-Bansal Service Centre Limited, U27310WB2000PLC092486 JOINT VENTURE 40 2(6)
12/2, Park Mansion, 57-A, Park Street, Kolkata-700 016.
14. Bhilai Jaypee Cement Ltd. U26940CT2007PLC020250 JOINT VENTURE 26 2(6)
JA House, 63, Basant Lok, Vasant Vihar, New Delhi-110057
15. SAIL & MOIL Ferro Alloys Pvt. Ltd. U27101CT2008PTC020786 JOINT VENTURE 50 2(6)
Sector-1, Bhilai - 490 001.
16. S&T Mining Co. Pvt. Ltd U13100WB2008PTC129436 JOINT VENTURE 50 2(6)
Tata Centre, 43, Jawaharlal Nehru Road,
Kolkata - 700 071, West Bengal, IN
17. International Coal Ventures Private Limited U10100DL2009PTC190448 JOINT VENTURE 47.82 2(6)
20th Floor, Scope Minar, Laxmi Nagar District Centre,
Delhi - 110092, IN.
18. SAIL SCI Shipping Private Limited, U61100WB2010PTC148428 JOINT VENTURE 50 2(6)
Shipping House, 13 Strand Road, Kolkata - 700001,
West Bengal, IN.
19. SAIL-SCL Kerala Limited U27104KL1969SGC002253 JOINT VENTURE 49.26 2(6)
Steel Nagar, P.B. No. 42, Feroke - 673 631, Kozhikode,
Kerala, IN.
20. SAIL-RITES Bengal Wagon Industry Pvt. Ltd. U35200DL2010PTC211955 JOINT VENTURE 50 2(6)
Scope Minar, Laxmi Nagar, Delhi - 110092, IN.
21. SAIL-Kobe Iron India Private Limited U27100DL2012PTC236499 JOINT VENTURE 50 2(6)
Ispat Bhawan, Lodi Road, New Delhi-110003, IN.
22. SAL-SAIL JVC Limited U28111DL2012PLC231225 JOINT VENTURE 26 2(6)
B-7, WHS Kirti Nagar, New Delhi-110015, IN
23. TMTSAL-SAIL JVC Limited U28113DL2012PLC231234 JOINT VENTURE 26 2(6)
B-7, WHS Kirti Nagar, New Delhi-110015, IN
24. SAIL- Bengal Alloy Castings Private Limited U35122WB2013PTC190532 JOINT VENTURE 50 2(6)
22B, Raja Santosh Road, New Alipore,
Kolkata-700027,West Bengal, IN.
25. VSL-SAIL JVC Limited U27106TG2012PLC083896 JOINT VENTURE 20.58 2(6)
Door No.2-51, Near Darga, Kardnur, Postpati Patan
Cheruvu Mandal, Hyderabad - 502300, Telangana, IN.
26. Prime Gold-SAIL JVC Limited U28113DL2012PLC245537 JOINT VENTURE 26 2(6)
5/2, Punjabi Bagh Extn., Club Road, New Delhi-110026, IN.
27. Abinav-SAIL JVC Limited U27100DL2012PLC245749 JOINT VENTURE 26 2(6)
401, Mahaveer Ji Complex, LSC Rishab Vihar,
Delhi-110092, IN.
28. NMDC SAIL Limited U27320TG2016GOI109798 JOINT VENTURE 49 2(6)
10-3-311/A, Khanij Bhavan Castle Hills, Masab Tank,
Hyderabad, TG 500028 IN.
29. Bastar Railway Private Limited U74900CT2016PTC007251 JOINT VENTURE 12 2(6)
Global Exploration Centre, NMDC Building Geens Villey City,
Housing Board Colony Boriyakala Raipur CT 492015, IN
30. GEDCOL SAIL Power Corporation Limited U40300OR2018SGC029410 JOINT VENTURE 26 2(6)
GEDCOL Corporate Office, 2nd Floor, OSPH & WC Building,
Vani Vihar, Janpath, Bhoinagar, Bhubnaeswar-751022, IN.

172
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Shareholders during the Year

Demat Physical Total % Total Demat Physical Total % Total

No. of No. of
shares shares

A. Promoters

1. Indian - - - - - - - - -

a) Individual/ |HUF - - - - - - - - -

b) Central Govt 3097767449 - 3097767449 75.00 3097767449 - 3097767449 75.00 0.00

c) State Govt(s) - - - - - - - - -

d) Bodies Corp. - - - - - - - - -

e) Banks/FI - - - - - - - - -

f) Any other - - - - - - - - -

Sub Total (A)(1):- 3097767449 - 3097767449 75.00 3097767449 - 3097767449 75.00 0.00

2. Foreign

a) NRIs - Individuals - - - - - - - - -

b) Other - Individuals - - - - - - - - -

c) Bodies Corp. - - - - - - - - -

d) Banks / FI - - - - - - - - -

e) Any Other. - - - - - - - - -

Sub Total (A)(2):- - - - - - - - - -

Total shareholding 3097767449 - 3097767449 75.00 3097767449 - 3097767449 75.00 0.00

of Promoter (A) =
(A)(1)+(A)(2)

B. Public Shareholding

1. Institutions

a) Mutual Funds 110886637 124800 111011437 2.69 125854384 124600 125978984 3.05 0.36

b) Banks/FI 138930829 59876 138990705 3.36 75691691 59629 75751320 1.83 (-)1.53

c) Central Govt. - - - - - - - - -

d) State Govt.(s) - - - - - - - - -

e) Venture Capital Funds - - - - - - - - -

f) Insurance Companies 417264778 1900 417266678 10.10 413792934 1900 413794834 10.02 (-)0.08

g) FIIs 174998847 41126 175039973 4.24 169344462 41026 169385488 4.10 (-)0.14

h) Foreign Venture Capital - - - - - - - - -

Funds

i) Others (specify)IEPF 1731709 - 1731709 0.04 1961727 - 1961727 0.05 0.01

Sub-Total(B)(1): 843812800 227702 844040502 20.43 786645198 227155 786872353 19.05 (-)1.38

2. Non-Institutions

a) Bodies Corp. 29693002 53342 29746344 0.72 53886436 51741 53938177 1.31 0.59

i) Indian - - - - - - - - -

ii) Overseas - - - - - - - - -

b) Individuals

i)Individual Shareholders 101387379 3972860 105360239 2.55 112434981 3502601 115937582 2.81 0.26
holding nominal share
capital upto `1 lakhs

173
 Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Shareholders during the Year

Demat Physical Total % Total Demat Physical Total % Total

No. of No. of
shares shares

ii) Individual Shareholders 27350054 87100 27437154 0.66 49151442 107100 49258542 1.19 0.53
holding nominal share
capital in excess of
` 1 lakhs

c) Other (specify)NBFC 1033155 - 1033155 0.03 30002 - 30002 0.00 (-)0.02

i) Non Resident Indian 17904363 396500 18300863 0.44 19504401 396500 19900901 0.48 0.04

ii) Trust & Foundation 6519248 2300 6521548 0.16 6501148 2300 6503448 0.16 0.00

iii) Cooperative Societies 200400 - 200400 0.00 200400 - 200400 0.00 0.00

Sub-Total(B)(2) 184087601 4512102 188599703 4.57 241708810 4060242 245769052 5.95 1.38

Total Public 1027900401 4739804 1032640205 25.00 241909210 4287397 245969452 25.00 0.00
Shareholding (B)=
(B)(1)+(B)(2)

C. Shares held by 48435 69200 117635 0.00 48435 68000 116435 0.00 0.00
Custodian for GDRs &
ADRs

Grand Total 4125716285 4809004 4130525289 100.00 4126169892 4355397 4130525289 100.00 0.00
(A)+(B)+( C )

(ii) Shareholding of Promoters

Sl. No. Shareholder's Name Shareholding at the beginning of the year Share holding at the end of the year

No. of Shares % of total % of Shares No. of Shares % of total % of Shares % change in

Shares of the Pledged / Shares of the Pledged / share holding
Company encumbered Company encumbered during the
to total shares to total shares year

1 Govt. of India 3097767449 75.00 0 3097767449 75.00 0 -

Total 3097767449 75.00 0 3097767449 75.00 0 -

(iii) Change in Promoters' Shareholding (please specify, if there is no change)

Sl. No. Shareholding at the beginning of Cumulative Shareholding

the year during the year

No. of shares % of total No. of Shares % of total

Shares of the Shares of the
Company Company

1 Government of India 3097767449 75.00 3097767449 75.00

At the beginning of the year

Date wise Increase / Decrease in Promoters Share - - - -

holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer /
bonus/ sweat equity)

At the End of the year 3097767449 75.00 3097767449 75.00

174
 (iv) Shareholding Pattern of Top Ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Shareholding Cumulative Shareholding during

the year (31-03-18 to 31-03-19)

Sl. Folio No. Name PAN No. of Shares at % of total Date Increase / Reason Shares % of total
No the Beginning shares of Decrease Shares of
(31-03-18) /End the Company in Share- the Company
of the Year holding
(31-03-19)
1 IN30081210000012 LIFE INSURANCE CORPORATION OF INDIA AAACL0582H 395451358 9.57 31.03.2018
29.03.2019 1211806 Purchase 396663164 9.60
396663164 9.60 30.03.2019

2 IN30014210753517 KOTAK FUNDS - INDIA MIDCAP FUND AAGCK4148L 30165789 0.73 31.03.2018
25.05.2018 900000 Purchase 31065789 0.75
01.06.2018 131496 Purchase 31197285 0.76
31197285 0.76 30.03.2019

3 IN30081210498007 LIC OF INDIA MARKET PLUS 1 GROWTH FUND AAACL0582H 51099546 1.24 31.03.2018
15.02.2019 -2775000 Sale 48324546 1.17
22.02.2019 -2044145 Sale 46280401 1.12
01.03.2019 -4483663 Sale 41796738 1.01
08.03.2019 -2000000 Sale 39796738 0.96

175
15.03.2019 -4825000 Sale 34971738 0.85
22.03.2019 -3010000 Sale 31961738 0.77
29.03.2019 -4180000 Sale 27781738 0.67
27781738 0.67 30.03.2019

4 IN30081210501340 LIFE INSURANCE CORPORATION OF INDIA P & AAACL0582H 25853245 0.63 31.03.2018
GS FUND
25853245 0.63 30.03.2019 NIL NIL

5 IN30016710015686 RELIANCE CAPITAL TRUSTEE CO. LTD. - AAATR0090B 0 0 31.03.2018

A/C RELIANCE TAX SAVER
15.06.2018 6300000 Purchase 6300000 0.15
20.07.2018 900000 Purchase 7200000 0.17
03.08.2018 1800000 Purchase 9000000 0.22
10.08.2018 3600000 Purchase 12600000 0.31
07.09.2018 1800000 Purchase 14400000 0.35
12.10.2018 14400000 Purchase 14400000 0.35
15.02.2019 2700000 Purchase 17100000 0.41
22.02.2019 1800000 Purchase 18900000 0.46
01.03.2019 2700000 Purchase 21600000 0.52
21600000 0.52 30.03.2019
 Shareholding Cumulative Shareholding during
the year (31-03-18 to 31-03-19)

Sl. Folio No. Name PAN No. of Shares at % of total Date Increase / Reason Shares % of total
No the Beginning shares of Decrease Shares of
(31-03-18) /End the Company in Share- the Company
of the Year holding
(31-03-19)

6 IN30016710000279 RELIANCE CAPITAL TRUSTEE COMPANY LIMITED AAATR0090B 0 0 31.03.2018

A/C RELIANCE VISION FUND
08.06.2018 4050000 Purchase 4050000 0.10
15.06.2018 8820000 Purchase 12870000 0.31
06.07.2018 1800000 Purchase 14670000 0.36
20.07.2018 630000 Purchase 15300000 0.37
10.08.2018 1800000 Purchase 17100000 0.41
17100000 0.41 30.03.2019

7 IN30343810003257 VANGUARD TOTAL INTERNATIONAL STOCK AABTV0442N 13232867 0.32 31.03.2018

INDEX FUND
11.05.2018 606075 Purchase 13838942 0.34
03.08.2018 445362 Purchase 14284304 0.35
07.09.2018 629703 Purchase 14914007 0.36
16.11.2018 885443 Purchase 15799450 0.38
08.02.2019 1108903 Purchase 16908353 0.41
16908353 0.41 30.03.2019

176
8 IN30343810016654 VANGUARD EMERGING MARKETS STOCK AAATY0918K 16643922 0.40 31.03.2018
INDEX FUND, A SERIES OF VANGUARD
INTERNATIONAL EQUITY INDEX FUND
04.05.2018 -30960 Sale 16612962 0.40
11.05.2018 -29412 Sale 16583550 0.40
01.06.2018 -23220 Sale 16560330 0.40
15.06.2018 -23220 Sale 16537110 0.40
22.06.2018 -62402 Sale 16474708 0.40
29.06.2018 -100452 Sale 16374256 0.40
06.07.2018 -41094 Sale 16333162 0.40
13.07.2018 -65446 Sale 16267716 0.39
01.02.2019 107068 Purchase 16374784 0.40
08.02.2019 341510 Purchase 16716294 0.40
29.03.2019 42458 Purchase 16758752 0.41
16758752 0.41 30.03.2019

9 IN30179910081740 BNP PARIBAS ARBITRAGE AAGFB5324G 0 0 31.03.2018

05.10.2018 323993 Purchase 323993 0.01
12.10.2018 -7273 Sale 316720 0.01
09.11.2018 432000 Purchase 748720 0.02
16.11.2018 170229 Purchase 918949 0.02
 Shareholding Cumulative Shareholding during
the year (31-03-18 to 31-03-19)

Sl. Folio No. Name PAN No. of Shares at % of total Date Increase / Reason Shares % of total
No the Beginning shares of Decrease Shares of
(31-03-18) /End the Company in Share- the Company
of the Year holding
(31-03-19)
30.11.2018 -276000 Sale 642949 0.02
21.12.2018 1068000 Purchase 1710949 0.04
28.12.2018 5988000 Purchase 7698949 0.19
31.12.2018 5904000 Purchase 13602949 0.33
04.01.2019 84000 Purchase 13686949 0.33
11.01.2019 804000 Purchase 14490949 0.35
08.03.2019 148344 Purchase 14639293 0.35
15.03.2019 2327084 Purchase 16966377 0.41
22.03.2019 -461487 Sale 16504890 0.40
29.03.2019 -765941 Sale 15738949 0.38
15738949 0.38 30.03.2019

10 IN30005410009134 HDFC TRUSTEE COMPANY LIMITED - AAATH1809A 11272000 0.27 31.03.2018

HDFC PRUDENCE FUND
20.04.2018 1400000 Purchase 12672000 0.31
27.04.2018 3048000 Purchase 15720000 0.38
15720000 0.38 30.03.2019

177
11 IN30005410094202 POLUNIN DEVELOPING COUNTRIES FUND, LLC AAICP0164F 13502636 0.33 31.03.2018
11.08.2018 117411 Purchase 13620047 0.33
07.12.2018 388570 Purchase 14008617 0.34
11.01.2019 271131 Purchase 14279748 0.35
14279748 0.35 30.03.2019

12 1203280000374484 YUSUFFALI MUSALIAM VEETTIL ABDUL KADER . ACNPY6727D 11900000 0.29 31.03.2018
11900000 0.29 30.03.2019 NIL NIL

13 IN30016710000262 RELIANCE CAPITAL TRUSTEE COMPANY LIMITED AAATR0090B 7000000 0.17 31.03.2018
A/C RELIANCE GROWTH FUND
27.04.2018 -2496000 Sale 4504000 0.11
15.02.2019 -254000 Sale 4250000 0.10
21.09.2018 2207767 Purchase 6457767 0.16
29.09.2018 2178505 Purchase 8636272 0.21
04.01.2019 1000000 Purchase 9636272 0.23
15.02.2019 4000000 Purchase 13636272 0.33
01.03.2019 2000000 Purchase 15636272 0.38
15.03.2019 -2000000 Sale 13636272 0.33
29.03.2019 -2000000 Sale 11636272 0.28
11636272 0.28 30.03.2019
 Shareholding Cumulative Shareholding during
the year (31-03-18 to 31-03-19)

Sl. Folio No. Name PAN No. of Shares at % of total Date Increase / Reason Shares % of total
No the Beginning shares of Decrease Shares of
(31-03-18) /End the Company in Share- the Company
of the Year holding
(31-03-19)
14 IN30005410009118 HDFC TRUSTEE COMPANY LIMITED - AAATH1809A 10962415 0.27 31.03.2018
HDFC TOP 200 FUND
12.10.2018 670000 Purchase 11632415 0.28
11632415 0.28 30.03.2019

15 IN30081210497730 LIC OF INDIA MARKET PLUS GROWTH FUND AAACL0582H 17677583 31.03.2018
04.01.2019 -17677583 Sale 0 0
0 0 30.03.2019

16 IN30343810003972 CAPITAL GROUP EMERGING MARKETS TOTAL AADCC5192M 12448649 0.30 31.03.2018
OPPORTUNITIES (LUX)
26.10.2018 -900000 Sale 11548649 0.28
16.11.2018 -2000000 Sale 9548649 0.23
23.11.2018 -2241258 Sale 7307391 0.18
14.12.2018 -1500000 Sale 5807391 0.14

178
22.03.2019 -5807391 Sale 0 0
0 0 30.03.2019

17 IN30081210497789 LIC OF INDIA MONEY PLUS GROWTH FUND AAACL0582H 11754806 0.28 31.03.2018
15.02.2019 -1650000 Sale 10104806 0.24
22.02.2019 -875000 Sale 9229806 0.22
01.03.2019 -1950000 Sale 7279806 0.18
08.03.2019 -1173152 Sale 6106654 0.15
15.03.2019 -2040000 Sale 4066654 0.10
22.03.2019 -1605000 Sale 2461654 0.06
29.03.2019 -2461654 Sale 0 0
0 0 30.03.2019

18 IN30012611241922 LIC OF INDIA PROFIT PLUS GROWTH FUND AAACL0582H 11655668 0.28 31.03.2018
15.02.2019 -2600000 Sale 9055668 0.22
22.02.2019 -700000 Sale 8355668 0.20
01.03.2019 -1639204 Sale 6716464 0.16
08.03.2019 -1370000 Sale 5346464 0.13
15.03.2019 -1735000 Sale 3611464 0.09
22.03.2019 -1250000 Sale 2361464 0.06
29.03.2019 -2361464 Sale 0 0
0 0 30.03.2019
(v) Shareholding of Directors and Key Managerial Personnel

Sl. Shareholding of each Directors and Shareholding at the beginning of the year Cumulative Shareholding during the year
No. each Key Managerial Personnel

1. Shri Anil Kumar Chaudhary, Chairman No. of shares % of total shares of No. of shares % of total shares of
the Company the Company

At the beginning of the year 200 0.00 200 0.00

Date wise Increase / Decrease in Promoters Shareholding Nil Nil Nil Nil
during the year specifying the reasons for increase /decrease
(e.g. allotment / transfer / bonus/ sweat equity etc.):

At the end of the year 200 0.00 200 0.00

Sl. Shareholding of each Directors and Shareholding at the beginning of the year Cumulative Shareholding during the year
No. each Key Managerial Personnel

2. Shri Atul Srivastava, Director (Personnel) No. of shares % of total shares of No. of shares % of total shares of
the Company the Company

At the beginning of the year 200 0.00 200 0.00

Date wise Increase / Decrease in Promoters Shareholding Nil Nil Nil Nil
during the year specifying the reasons for increase /decrease
(e.g. allotment / transfer / bonus/ sweat equity etc.):

At the end of the year 200 0.00 200 0.00

Sl. Shareholding of Key Managerial Personnel Shareholding at the beginning Cumulative Shareholding
No. of the year during the year

1. Shri M.C Jain, Company Secretary No. of shares % of total shares of No. of shares % of total shares of
the Company the Company

At the beginning of the year 68 0.00 68 0.00

Date wise Increase / Decrease in Promoters Shareholding Nil Nil Nil Nil
during the year specifying the reasons for increase /decrease
(e.g. allotment / transfer / bonus/ sweat equity etc.):

At the end of the year 68 0.00 68 0.00

Note: All other Directors do not hold any shares of the Company at the beginning, during and at the end of the Financial Year 2018-19.

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(` crore)
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness

Indebtedness at the beginning of the Financial Year

i) Principal Amount 34570.28 10838.29 - 45408.57
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 869.37 203.17 - 1072.54
Total (i+ii+iii) 35439.65 11041.46 - 46481.11
Change in Indebtedness during the Financial Year
- Addition 8795.05 39167.65 337.65 48300.35
- Reduction 5900.00 42301.23 337.65 48538.88
Net Change 2895.05 -3133.58 0.00 -238.53
Indebtedness at the end of the Financial Year
i) Principal Amount 37465.33 7704.71 - 45170.04
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 730.91 25.98 - 756.89
Total (i+ii+iii) 38196.24 7730.69 - 45926.93

179
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl. Particulars of Name of MD/WTD/ Manager Total
No. Remuneration Amount
(`)
Shri Shri Dr. G. Shri Ms. Shri Shri Shri
P.K. Singh Anil Kumar Vishwakarma Raman Soma Mondal Atul Harinand Vivek
(upto 30.06.18) Chaudhary (upto 31.07.18) Srivastava Rai Gupta
(from 01.08.18) (from 27.03.19)

Chairman Director Director Director Director Director Director Director

(Finance) & (P&BP) (Technical) (Commercial) (Personnel) (Technical) (RM&L)
Chairman
(from 22.09.18)
1. Gross salary
(a) Salary as per provisions 12,70,312 39,38,243 35,73,914 21,02,241 35,75,492 44,29,043 24,03,202 3,21,410 2,16,13,857
contained in section 17(1) of the
Income Tax Act, 1961
(b) Value of perquisites u/s 1,41,662 4,24,454 3,70,176 1,62,775 4,36,064 - 2,10,498 - 17,45,629
17(2) Income Tax Act, 1961
(c) Profits in lieu of salary under - - - - - - - - -
section 17(3) Income Tax Act, 1961
2. Stock Option - - - - - - - -
3. Sweat Equity - - - - - - - -
4. Commission
- as % of profit
- others, specify - - - - - - - -
5. Others, specify - - - - - - - -
Total (A) 14,11,974 43,62,697 39,44,090 22,65,016 40,11,556 44,29,043 26,13,700 3,21,410 2,33,59,486
Ceiling as per the Act N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.

B. Remuneration to Other Directors:

Sl. Particulars of Remuneration Fee For attending Board/ Commission Others, Please Total Amount
No. Committee Meetings Specify

1. Independent Directors*

CA Parmod Bindal 5,80,000 - - 5,80,000

Mrs. Anshu Vaish 5,80,000 - - 5,80,000

Prof. Ashok Gupta 7,00,000 - - 7,00,000

Dr. Samar Singh 4,40,000 - - 4,40,000

Sh. Nilanjan Sanyal 7,20,000 - - 7,20,000

CA K.S. Chauhan 4,00,000 - - 4,00,000

Prof. N.K. Taneja 5,00,000 - - 5,00,000

Sh. Krishan Kumar Gupta 1,00,000 - - 1,00,000

Total(1) 40,20,000 - - 40,20,000

2. Other Non- Executive Directors**

Total (2) - - - -

Total (B)=(1+2) 40,20,000 - - 40,20,000

Total Managerial Remuneration

Ceiling as per the act ((@1% of profits N.A. N.A. N.A. N.A.
calculated under section 198 of the
Companies Act, 2013)

*Only sitting fee is paid to Independent Directors

**No sitting fee is paid to other Non-Executive Directors.

180
C. Remuneration to Key Managerial Personnel Other Than MD/Manager/WTD
Sl. No. Particulars of Remuneration Shri. M. C Jain Total
Company Secretary (`)

1. Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961 35,25,516 35,25,516
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961 - -
(c) Profits in lieu of salary under section 17(3) Income- Tax Act, 1961 - -

2. Stock Option - -

3. Sweat Equity - -

4. Commission
- as % of profit - -
others, specify… - -

5. Others, please specify - -

Total (A) 35,25,516 35,25,516

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

TYPE Section of Brief Description Details of Penalty/ Authority Appeal Made,
Companies Act Punishment / (RD/NCLT/Court) if any
Compounding of
Fees imposed

A. COMPANY

Penalty

Punishment

Compounding

B. DIRECTORS

Penalty NIL
Punishment

Compounding

C. DEFAULT

Penalty

Punishment

Compounding

181
 Annexure-X to the Board’s Report
Particulars of Loans, Guarantees or Investments in accordance with Section 186 of the Companies Act, 2013
i) Amount outstanding as at 31st March, 2019
Particulars Amount (` crore)
Loans given * 39.21
IISCO Ujjain Pipe & Foundry Co. Ltd. 2.53
NTPC SAIL Power Company Limited 7.88
NMDC SAIL Limited 0.10
UEC SAIL Information Technology Limited 1.30
SAIL-MOIL Ferro Alloys Private Limited 12.00
S&T Mining Co. Pvt. Limited 0.02
SAIL SCL Kerala Limited 8.25
ROMELT-SAIL (India) Limited 0.13
SAIL RITES Bengal Industries Pvt. Ltd. 7.00
Total 39.21
Investments made# 1467.02

* ` 35.95 crore provided for.

# Refer Note No.8 to Standalone Accounts

ii) Investments made during the year ended 31st March, 2019
Name of the Entity Relation Amount Purpose for which the
(` crore) Investments are proposed
to be utilised
Bastar Railway Pvt. Limited Joint Venture 35.22 Business Purpose
GEDCOL SAIL Power Corporation Limited Joint Venture 0.26 Business Purpose

For and on behalf of the Board of Directors

Sd/-
(Anil Kumar Chaudhary)
Chairman

Place: New Delhi

Dated: 31st July, 2019

182
 Annexure-XI to the Board’s Report
Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings & Outgo
(Pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies(Accounts) Rules, 2014)

(A) Conservation of energy Bell Less Top Charging System in Blast Furnace # 3 of DSP 0.66
i) Steps taken or impact on conservation of energy
Top Pressure Recovery Turbine System at Blast Furnace # 5 2.02
Bhilai Steel Plant (BSP) of ISP
a) Best ever CDI and Coke Rate of 76.2 Kg/thm and 442.9 Kg/thm respectively
achieved at BF #7. Coal Dust Injection System in Blast Furnace #4 at RSP 0.20
(usage of auxiliary fuel to reduce Coke charging)
b) Replacement of old Russian BF gas burners by new in-house efficient burners
based on RDCIS design in boiler #5. Installation of energy efficient Walking Beam Type Furnace 5.35
at BSP, RSP, BSL & ISP
c) Replacement of all 8 nos. worn out air preheater blocks in boiler #5 to improve
performance of the boiler. Torpedo Ladle for Hot Metal handling at BSP & ISP 4.49
d) 7455 nos. of LED bulbs/lamps installed in various locations across the plant Cast House Slag Granulation System at BSL 0.85
resulting in annual power saving of 656 MWh approx.
Rotary Hearth Furnace at DSP 6.26
e) Two nos. of industrial water pumps replaced with energy efficient pumps in
Pump House # 2 of water management department. Total 29.83
f) Commissioning of VVVF drive for relay mechanism at cooling bed of Merchant (B) Technology absorption
Mill. i) Efforts made towards technology absorption
g) Power generation from Back Pressure Turbine Generator (BPTG) of CDCP of Research and Development Centre for Iron & Steel (RDCIS) is the Corporate R&D
coke oven battery #11 started in February 2019. Unit of SAIL. Over the years, RDCIS has earned credentials of being an R&D Centre
h) Plant specific energy consumption - 6.75 Gcal/tcs. of international repute in the field of ferrous metallurgy. The major thrust of RDCIS
is to plan, demonstrate and implement multi-disciplinary R&D programmes in SAIL
i) Plant specific overall power consumption - 561 kWh/tss.
Plants to improve their key performance indices related to quality, productivity and
Durgapur Steel Plant (DSP) yield. RDCIS works with steel Plants and Central Marketing Organisation of the
a) Lowest ever Blast Furnace Coke Rate of 459.4 kg/thm. Company to reduce product cost, develop value added market centric products
b) Highest ever CDI rate of 56.7 kg/thm. and demonstrate the application of SAIL products amongst the customers. Specific
c) Lowest ever specific boiler coal consumption of 2.2 kg/t of steam. areas in which R&D activities were carried out by the Company in 2018-19 are as
under:
d) Plant specific energy consumption - 6.28 Gcal/tcs (including new units).
a) Process Developments
e) Plant specific overall power consumption - 410 kWh/tss. Raw Materials
Rourkela Steel Plant (RSP) • Feasibility study for beneficiation & pelletization of samples from Mahamaya
a) BPTG generation increased from 2.20 MW to 2.89 MW. iron ore Mines, BSP.
b) Average solar power generation is 0.06 MW resulting in reduced import power Coke Making
from grid. • Implementation of Computerized Heating Control model system (COHC) in
c) Plant specific energy consumption - 6.26 Gcal/tcs. COB#5, DSP.
• Improvement in hot strength of coke, BSL.
d) Plant specific overall power consumption - 463 kWh/tss.
• Enhancement of coke strength by optimization of operating parameters of
Bokaro Steel Plant (BSL) COB # 10, ISP.
a. Implementation of real time monitoring system for battery heating in coke Agglomeration
oven battery # 3 & 4. • Performance improvement of SP #2 through innovative techniques, DSP.
b. Revival of 2 nos. of cooling tower in by-product plant to increase the tar yield. • Optimisation of raw materials to achieve better productivity and sinter quality
c. Partial commissioning of new alternate coke oven gas main header thereby in DSP conditions.
improving CO gas availability for mills. Blast Furnaces
d. Full repair of 3 nos. of pits along with recuperators. • Reduction in heat loss through hard facing and refractory lining copper tuyeres
e. Commissioning of 2 MW roof top solar lighting system through BPSCL. in BF#5, BSL.
• Improvement in Gas Utilization of BF#5, RSP.
f. Changing of recuperator of RHF # 2 & 3 during capital repair.
• Assessing Alkali Load of BF #5 using Flame Photometer, ISP.
g. Full skid insulation of RHF# 2, 3 & 4 during capital repair. Steel Making, Casting and Refractory
h. Liquidation of 90 nos. of steam leakages, insulation of 800 meter steam line & • Introduction of mould coating in caster for improving mould life, BSL.
replacement of 24 nos. of steam traps. • Control of bulging in Strands of Bloom Caster, DSP.
i. Plant specific energy consumption - 6.68 Gcal/tcs. • Investigation and characterization of Longitudinal Midface Cracks (LC) in slabs
j. Plant specific overall power consumption - 472 kWh/tss. from caster #3 SMS-II, RSP.
IISCO Steel Plant (ISP) • Improvement in performance of RHF by enhancing life of skid pipe insulation
in R&S Mill, BSP.
a. PCI rate increased from 97 kg/thm to 123 kg/thm thereby reducing coke rate
• Development of suitable quality refractory for improvement of refractory lining
from 442 kg/thm to 418 kg/thm.
performance of VAD ladle cover, ASP.
b. Power generation in TRTG improved from 7.81 MW to 9.7 MW. • Use of high performance bearings for increased availability of slab caster #2
c. BF gas & CO gas mixing facility modified and CBM gas mixing facility introduced at SMS, RSP.
in the existing gas mixing station of LDCP for proper intermixing of different Rolling Mills
fuel gases to obtain desired and consistent calorific value of the mixed gas. • Introduction of Edger lubrication in Roughing Mills of HSM, BSL
d. Plant specific energy consumption - 6.36Gcal/tcs. • Qualifying criteria test of rails as per Indian and European specification, BSP
e. Plant specific overall power consumption - 552 kWh/tss. • Investigation of UT failed rails, BSP
ii) Capital Investment on energy conservation equipments • Implementation of GPS based tracking system & Intelligent low idling system
A Capital expenditure of `29.83 crore, as detailed below, has been incurred during for Locomotives, BSL
the Financial Year 2018-19: Energy Conservation and Environment
• Waste heat recovery from sinter cooler for hot water generation at SP #3,
Particulars ` crore BSP
Recovery of sensible heat of Coke by Installation of Coke 10.00 • Infra-red thermal imaging of BF Stoves, BSL
Dry Quenching System in Coke Oven Battery #11 at ISP • Feasibility study of BOF slag by steam maturing for its use in cement concrete,
and #11 at BSP BSL

183
b) Laboratory based work
7 ERW Pipes in ASTM A53 Gr B RSP Ash/water handling
• Effect on coke quality of Pet Coke in coal blend through pilot oven carbonization
at Vietnam Power
• Development of methodology for estimation of 'free CaO' in steelmaking slag Plant
& a method to evaluate flux reactivity`
• Wear characterization of various grades of rail steel developed by SAIL 8 High Strength Q&T Plates in EN RSP Crane
• Development of TRIP-enhanced lean duplex stainless steel on laboratory scale 10025-6 S690 QL
• Study on influence of hydrogen content on embrittlement and slow strain rate 9 2 Pi Quenched & Tempered steel Plate RSP Defence sector
tensile (SSRT) behaviour of 90 UTS pearlitic rail.
10 IS 1786 Fe550 D TMT rebars BSP Construction
• Chromium in BOF slag: Identification of its source and strategies to recycle it
25 / 32 mm Segment
as soil conditioner
c) Product Development & Application 11 Channel 100 IS 2062 E350 BR BSP Steel Structures
RDCIS, through continuous technological inputs, has been helping the Company in 12 56 mm Plates with enhanced impact BSP Structurals for Bridge
producing value added steel products at a competitive price. Several new products, properties (54 joules at -20°C), Construction
particularly special steels, having superior product quality attributes have been JIS 3106 SM 570 upto 16 mm
developed and commercialized by RDCIS for meeting stringent application Normalised Steel Plates
requirement of various market segments. Principle of cost effective alloy design
and optimization of process parameters were the prime consideration for 13 IS 2062 E 250 B0 (Si-K) Angle BSP Construction
development of the new market oriented products. During the year 2018-19, the (Section : 75 x 75 x 8 mm & 75 x Segment
following 20 no. of products have been developed. Some of these products have 75 x 10 mm)
been developed using the newly commissioned production facilities viz., CRM III 14 IS 1786 Fe550 D Grade Rebars in ISP Construction
(BSL), NPM (RSP), MSM (DSP), WRM (ISP), BRM (ISP) and USM (ISP). 12 / 16 / 20 mm dia & Fe-500D Segment
S.No. Product Details Plant Application Grade 8 & 10 mm dia TMT Wire Rod
using C-20 (lower CE) Billets
1 JIS G3141 SPCC 0.7 &2 mm BSL Cold reducing carbon
steel for general use. 15 SUP 11A Grade Billets ISP Spring steel for Auto
Export to Sri Lanka Segments
2 EN10025 275JR & IS2062 E410C BSL Non alloy structural 16 High Strength IPE600 Structural ISP Construction
steel without Micro-alloying Segment
3 IS 2062 E350C steel Plates with higher RSP Construction; 17 IS 2062E250 BR NPB200 & MB300 DSP Construction
impact strength & finer grain size Bridges for KRCL Structurals Segment
4 UT sound 100mm thick Plate in RSP Construction sector 18 20 / 25 mm IS 1786 550 D TMT Bars DSP Construction
IS 2062 E250BR (Darukhana Steel, Segment
Mumbai)
19 Al killed JIS 3101 SS540 (RC-2) Gr. DSP Construction
5 Thicker Normalized BQ Plates - IS RSP Boiler construction CC Blooms of 230x160, 300x150 & Segment
2002 Gr.2 (63/70/110mm) (BHEL) 350x240 mm size for high strength
6 Q&T ASTM A 517 Gr. F Plate 32 & RSP Boilers and Pressure structurals
40 mm thick), ASTM A 537 Cl. 2 Vessels
20 IS 2062 E250 BR MB250 & NPB250 DSP Construction
40 mm thick plate
Structurals Segment

(ii) Benefits derived from key projects in 2018-19:

• Process Area

Project Title Plant Benefits Derived

Waste heat recovery from sinter cooler for hot water generation at BSP • The WHRS has been designed to recover heat energy from waste heat of sinter cooler to
SP #3 the tune of 18,92,000 kCal/hr.
• Improvement in specific productivity of sinter by ~3% from 1.15 to 1.184 t/m2/hr as well
as reduction in solid fuel consumption by 2.18 kg/t of sinter from 68.34 to 66.16 kg/t of
sinter.
Qualifying criteria test of rails as per Indian and European BSP • Rails produced at BSP are one of the prime products of SAIL and in order to maintain its
specification quality, Qualifying Criteria Tests (QCT) like residual stress measurement, fracture
toughness and fatigue strength are being carried out at RDCIS as stipulated in IRS-T-12
2009 specification.
• The results obtained are found to be well within the stipulations of IRS T-l2-2009
specification. Based on satisfactory results, approval for manufacturing of rails through
SMS III - URM route was obtained immediately from RDSO, Lucknow.
• This year (2018-19) under QCT on rails, total 35 Nos. of residual stress measurement,
340 Nos. of fracture toughness test and 108 Nos. of fatigue strength test were carried out
at RDCIS
Investigation of UT failed rails BSP • Total 12 numbers of rail samples were systematically investigated in SEM/EDS.
Ultrasonically Tested (UT) failed rails were investigated to find out genesis of these failures.
• The probable sources for UT defects in rails were identified as entrapped non metallic
inclusions like slag, mould powder and pieces of SEN in steel.
• Based on these investigations, recommendations were made on periodic basis for
corrective action at BSP.
Implementation of Computerized Heating Control model system DSP • RDCIS has developed a state-of-the-art Computerised Coke Oven Heating Control System
(COHC) in COB#5 (COHC) with total in-house knowhow and expertise.
• The system has been commissioned at COB#5, DSP.
• The initial trends show an average energy saving of 9.5 GCal per day with 90 pushing / day
under mixed gas underfiring.

184
Project Title Plant Benefits Derived

Performance improvement of SP #2 through innovative techniques DSP • Due to the technological measures incorporated, the monthly productivity has improved
significantly from a level of 1.35 t/m2/hr (Avg of 2015-16) before 1st intervention under
this project to 1.44 t/m2/hr (Current year productivity)

Optimisation of raw materials to achieve better productivity and DSP • Experiments were conducted on all the raw materials such as Iron ore fines, lime stone
sinter quality in DSP conditions fines, dolomite fines, coke breeze, mill scale, return sinter fines.
• Best productivity i.e. 1.38 t/m²/hr is achieved at 60% Bolani 40% Gua. Next best i.e. 1.33 t/
m²/hr productivity is recorded at 55% Bolani & 45% Gua.

Control of bulging in Strands of Bloom Caster DSP • Analysis of process parameters in steelmaking and casting revealed that the problem of
bulging and rhomboidity arising in caster is mainly due to the high dispatch temperature
after secondary treatment of steel and improper secondary cooling.
• Control of the steel dispatch temperature and improvement in maintenance practice has
resulted into increasing the casting speed without facing much issue in terms of bulging or
other shape related defects. After process optimization, casting of nearly 88% heats is
finished within 80 minutes compared to ~54% in earlier condition.

Improvement in Gas Utilization of BF#5 RSP • The combined effect of various process optimization measures lead to improvement in
average (Apr'18-Feb'19) gas utilization from 42% to 43.5% in BF#5. Additionally Coke
quality (M10) in Battery #4 & 5 was marginally on lower side.

Investigation and characterization of Longitudinal Midface Cracks RSP • New mould powder with higher basicity, practice of mould machining after every 500
(LC) in slabs from caster #3 SMS-II heats to control mould profile etc was introduced for the crack sensitive grades.
• The incidences of longitudinal cracks significantly reduced from more than 4% to less than
2% after the modifications.

Use of high performance bearings for increased availability of slab RSP • The existing type of bearing was replaced by sealed spherical roller bearing, modified the
caster #2 at SMS rotary joint and its cover, introduced grease distributor with better flow control and heat
resistant seal to reduce consumption of grease.
• These led to increase in caster availability and reduction of grease consumption by 66% for
this segment.

Infrared thermal imaging of BF Stoves BSL • The thermal scanning campaigns were conducted 6 times for BF#2, 5 times for BF#3 and
3 times for BF#5.
• Regular monitoring of BF stoves by thermal imaging and taking the remedial actions helped
in avoiding the major breakdowns due to shell damage and hot gas release from Stove
shells after melting the metallic shell.

Feasibility study of BOF slag by steam maturing for its use in BSL • A pilot system has been designed and established at Bokaro Steel Plant aimed at
cement concrete accelerated stabilization of free lime content of BOF slag using steam as maturing agent.
• It has been established that steam matured BOF Slag can be blended with appropriate size
aggregates and used as Granular Sub-base material as per guidelines of Ministry of Road
Transport and Highways.

Reduction in heat loss through hard facing and refractory lining BSL • RDCIS has designed and developed a modified tuyere with refractory coating on inner
copper tuyeres in BF#5 surface and alloy hard facing on outer surface.
• ΔT (Tout-Tin) of cooling water for installed modified tuyeres has been reduced by
approximately 20-30%.
• Average heat loss through all working tuyeres taken into consideration has been reduced
by 15%.

Introduction of mould coating in caster for improving mould life BSL • The used mould plates of SMS-II, BSL caster coated with Nickel. The coating profile
adopted was full face tapered (linear) coating with 0.5 mm at the top and 2.5 mm at the
bottom. The coated mould put in trial from Feb 2018. No abnormality was observed during
trial for 10 campaigns.
• The trial shows that coating of mould plates with thermocouple and its use under stringent
BSL caster conditions, like, top dummy bar insertion, are possible.

Introduction of Edger lubrication in Roughing Mills of HSM BSL • Automatic Edger Roll Lubrication (ERL) system was developed and installed at HSM for
controlling wear of rolls at all the edger stands.
• Reduction in wear rate of rolls even at lower specific oil consumption of around 10 ml/ton
compared to its stipulated value of 15 ml/ton.

Improvement in hot strength of coke BSL • The heating parameters like free space temperature, free space height, vertical top
pressure and cross wall temperature in coke oven batteries were measured and corrective
actions were taken to make them in order.
• As a result of above mentioned optimizations the CSR improved from 63.8 (Average of
Aprl'17-Jan'18) to 64.32 (April 2018 to Feb' 2019).

Assessing Alkali Load of BF #5 using Flame Photometer ISP • Flame photometer system has been procured, installed & commissioned at BF RCL
Laboratory for reliable alkali analysis of materials used in BF Process. Based on the regular
alkali analysis, better BF process control has been suggested for BF # 5 whenever alkali
load is high.

Enhancement of coke strength by optimization of operating ISP • Through rigorous monitoring and small but significant innovations, the coke quality of
parameters of COB # 10 COB#10 has improved from M10:8.0, M40:83.8, CSR: 63.9, CRI: 23.5 (Average Feb'18)
to M10:7.6, M40:84.3, CSR:64.2, CRI:22.5 (Average Feb'19).

185
 Project Title Plant Benefits Derived

Development of suitable quality refractory for improvement of ASP • Improved quality refractory (High Alumina bricks and prefabricated blocks) with high
refractory lining performance of VAD ladle cover thermal shock resistance, high corrosion resistance, high abrasion resistance, and high
volume stability has been developed jointly with SRU, IFICO and RDCIS
• Developed refractory was lined in VAD ladle cover and achieved a lining life of 167 heats.
As the prefabricated blocks and bricks are manufactured in SRU, IFICO, also an in-house
source for VAD ladle cover refractory is now available with us.

Development of methodology for estimation of 'free CaO' in RDCIS • A flux reactivity apparatus has been designed and fabricated at RDCIS, Ranchi. Flux
steelmaking slag & a method to evaluate flux reactivity Reactivity Apparatus is an experimental setup for quick (~ 5 minutes) and reliable
measurement of flux reactivity
• The results have been validated through the excellent correlation that exhibits between
conventional titration method and the present methodology of determining flux reactivity
with an accuracy of ± 5%.
• This newly developed equipment saves a lot of time compared to existing practice which
normally takes 2-3 hrs for evaluation of flux reactivity .

Wear characterization of various grades of rail steel developed RDCIS • With a view to compare wear resistance properties of different grades of Rails developed
by SAIL by SAIL with respect to 90 UTS grade, several wear tests were carried out to characterize
all such grades.
• Wear tests on 57 samples were performed in different load condition.
• Metallurgical investigation on the tested samples was also carried out on SEM/ EDS.
• Generated data will help in selection of suitable grade of rail for appropriate applications as
per requirements of Indian Railways.

Study on influence of hydrogen content on embrittlement and slow RDCIS • Role of alloying on hydrogen embrittlement behaviour of different rail steels produced by
strain rate tensile (SSRT) behaviour of 90 UTS pearlitic rail. Bhilai Steel Plant was studied, in with and without hydrogen atmosphere. Systematic
mapping of hydrogen from head to foot of rail, across the cross section showed that, all
rail steel under investigation has hydrogen below 2ppm.
• Cu-Mo and HTCR rails showed better hydrogen embrittlement resistance than that of
other rails under investigation, by forming passive film and restricting ingress of hydrogen.

Feasibility study for Beneficiation & pelletization of samples from RDCIS • Samples of iron ore fines received from Mahamaya Mines to RDCIS for carrying out
Mahamaya Iron Ore Mines beneficiation and pelletisation feasibility test were analysed.

Chromium in BOF slag: Identification of its source and strategies RDCIS • A detailed study has been carried out to identify the possible source of chromium in BOF
to recycle it as soil conditioner slag. Samples were collected from Bokaro Steel Plant and it was found the main source
which contributed chromium was iron ore.

• Product Area

Product Plant Benefits Derived

JIS G3141 SPCC 0.7 &2 mm BSL JIS G3141 SPCC grade Cold rolled & annealed coils find application in automobiles and
electrical appliances segment. At BSL, 19 numbers of coils of this grade were processed into
cold rolled and annealed coils of size 0.7-2.9 mm (t) x 900-1215 mm (w). About 140.78 T
material dispatched to M/s.Sonic Steel Industries (Pvt.) Ltd., Srilanka & Balmer Lawrie (UAE)
LLC, Dubai .

EN10025 275JR & IS2062 E410C BSL This is European standard for hot-rolled non-alloy structural steel. CE Re-Certification taken by
BSL to capture European Market. 28 number of EN 10025 275JR Grade slabs were rolled into
2-4 mm x 1250 mm size HR coils & processed at HRCF, BSL and about 490 tons dispatched
as HR Sheet.

IS 2062 E350C steel Plates with higher impact strength & finer RSP These plates are required with higher Impact Strength and finer grain size (ASTM 8 or finer) for
grain size construction of Bridges. Requirement of KRCL for construction of bridges has been met
successfully.

UT sound 100 mm thick Plate in IS 2062 E250BR RSP Ultrasonically sound plates of 100 mm thickness conforming to IS2062 E250 BR successfully
developed at RSP. Heats were made with lower Sulphur level and extensive degassing through
RHOB. The plates were tested against the stringent norm of ASTM A578 Level B and were
found to be ultrasonically sound. About 660 T of these plates have been dispatched to M/s.
Darukhana Steel Pvt. Ltd., Mumbai

Thicker Normalized BQ Plates - IS 2002 Gr.2 (63/70/110mm) RSP Boiler quality plates (0.18C-1.12Mn-0.027P-0.018S-0.25Si-0.011Al) were rolled into 63,70
and 110 mm plates. These were normalized in the new heat treatment line of SPP of RSP. A
total of 325 T of these plates in the thickness of 63, 70 and 110 mm was dispatched to M/s.
BHEL conforming to IS 2002 Grade 2.

Q&T ASTM A 517 Gr. F Plate 32 & 40 mm thick), ASTM A 537 RSP Process technology established for ASTM 517 Grade F Q&T plates of 32 and 40 mm thickness
Cl. 2 40 mm thick plate for use in pressure vessels and penstocks and 40 mm thick plates of ASTM 537 Class 2
Grade for use in boilers and pressure vessels. The specified properties of ASTM 517 Grade F
(YS : 825-850 MPa, UTS : 882-891 MPa, %El : 20-21, CIE (J) : 64-78 at -20oC) & ASTM 537
Class 2 Grade (YS : 444-491 MPa, UTS : 581 -606 MPa, %El : 26, CIE (J) : 30-42 at -20oC)
have been achieved in the processed plates.

186
Product Plant Benefits Derived

ERW Pipes in ASTM A53 Gr B RSP ASTM A53 Gr B ERW Pipes are used for ash/water handling. This was an export requirement.
RSP has fulfilled the order and supplied material to Bhusan tubes for coating and onward
export to Vietnam.

High Strength Q&T Plates in EN 10025-6 S690 QL RSP Product developed. 159t dispatched to PEDVAK Technologies Pvt. Ltd., Hyderabad for
applications in EOT cranes.

2π Quenched & Tempered steel Plate RSP 50 T heat was made at ASP through VAD-CC route. Slabs were rolled into 5 mm plates using
Steckel Mill of SSP. Heat treatment was carried out at SPP, RSP using parameter arrived at on
the basis of simulation studies carried out at RDCIS. Processed plates met the specified
properties of GOST: B21967-76. 24T of 2π grade plates were sent to Ordinance Factory
Medak, where the performance in the ballistic test conducted with distance of 50 meters was
found to be satisfactory. Material is certified as acceptable.

IS 1786 Fe550 D TMT Rebars 25 / 32 mm BSP Trials for IS 1786 Fe550D grade TMT Rebars were undertaken in 25 mm and 32 mm dia at
BSP, Bhilai. Total 7 heats were rolled into 32 mm dia TMT Rebars and 6 heats were rolled into
25 mm dia TMT Rebars. Properties of trial processed TMT Rebars met the specification of IS
1786 Fe550D grade. A total of 1553 T comprising 742 T of 25 mm dia TMT Rebars and 811 T
of 32 mm dia TMT Rebars of IS 1786 Fe550D grade have been dispatched to M/s L&T for
constructing Convention Centre at Dwarka, Delhi.

Channel 100 IS 2062 E350 BR BSP 180 Ton of Channel 100 IS 2062 E350 BR grade has been supplied.

56 mm Plates with enhanced impact properties (54 joules at -20°C), BSP Process technology developed for 56 mm Plates with enhanced impact properties (54 joules
JIS 3106 SM 570 upto 16 mm Normalised Steel Plates at -20°C). After satisfactory performance of 50 T trial order, fresh order for 1400 T has been
received. Trial heats were made with variations of Nb, Ti, & V. Tensile and Charpy Impact
properties in 12.5 mm plates met the requirement of the specification and same grade has
been developed up to 16mm.

IS 2062 E 250 B0 (Si-K) Angle (Section : 75 x 75 x 8 mm & 75 x BSP Two heats of 500 T of IS 2062 E 250B0 (Si-K) grade were made. 345 T billets were
75 x 10 mm) processed into Angles of sections 75x75x10 mm and 75x75x8 mm in Merchant Mill. Angles of
75x75x10 & 75x75x8 mm size met specified properties of grade IS 2062 E250B0.

IS 1786 Fe550 D Grade Rebars in 12 / 16 / 20 mm dia & Fe-500D ISP Trials for IS 1786 Fe550D grade TMT rebars were undertaken in 12, 16 & 20 mm dia at ISP,
Grade 8 & 10 mm dia TMT Wire Rod using C-20 (lower CE) Billets Burnpur. Properties of trial processed TMT rebars in 12, 16 & 20 mm dia met the specification
of IS 1786 Fe550D grade. A total of 5125 T comprising 1238 T of 12 mm dia, 2742 T of 16
mm dia and 1145 T of 20 mm dia have been dispatched. Fe-500D Grade 8 & 10 mm dia TMT
Wire Rod with leaner chemistry (lower CE) and unique processing conditions have been
successfully developed.

SUP 11A Grade Billets ISP EMS operating parameters for SUP 11A grade stabilized. Eight number of heats have been
made.

High Strength IPE600 Structural without Micro-alloying ISP ISP is regularly producing high strength IPE600 structural using 0.040-0.050% Vanadium and
1.40-1.50% Manganese. Feasibility of producing high strength IPE600 structurals without
microalloying was explored. Trial was undertaken using Vanadium free IS 2062 E250 grade
beam blanks for producing high strength structurals. Besides the modified leaner (1.10% Mn)
non-micro-alloyed (i.e. V free) steel chemistry, special thermal regime and draft schedules
were tried during the trial processing. Properties achieved are significantly higher than that of
usual IS 2062 E250 grade IPE600 Structurals.

IS 2062E250 BR NPB200 & MB300 Structurals DSP Process technology developed for IS 2062E250 BR NPB200 & MB300 Structurals at MSM,
DSP. 20,070 T of IS 2062E250 BR NPB200 and 12,371 T of MB300 Structurals have been
dispatched.

20 / 25 mm IS 1786 550 D TMT Bars DSP Development of IS 1786 Fe500D grade TMT rebars in 20 and 25 mm dia was undertaken by
DSP. 1197 T of 20 mm dia and 592 T of 25 mm dia TMT were processed. Properties for all the
processed TMT rebars met the specifications of IS1786 Fe500D grade. The processed TMT
Rebars have been supplied to M/s L&T and BSO Delhi stock yard. Total supplied quantity of
this grade is 1634 T which includes 1078 T and 556 T of IS 1786 Fe550D TMT rebars of 20
mm dia and 25 mm dia respectively.

Al killed JIS 3101 SS540 (RC-2) Gr. CC Blooms of 230x160, DSP 3160 T of Al killed JIS 3101 SS540 (RC-2) Gr. CC Blooms of 230x160, 300x150 & 350x240
300x150 & 350x240 mm size for high strength structurals mm size supplied to M/s Skipper Ltd.

IS 2062 E250 BR MB250 & NPB250 Structurals DSP Process technology developed for IS 2062 E250 BR MB250 & NPB250 Structurals at MSM,
DSP. 11,267 T of IS 2062 E250 BR MB250 and 13,867 T of NPB250 Structurals have been
dispatched.

187
Other Technology Absorption, Adaption & Innovation Measures
Technology development, absorption, adaption and further improvement are continuously taking place in the Company in different areas of Steel Plant operation
through a definitive technology strategy. A number of new technologies are installed / being installed as a part of modernization/continuous improvement. These
area-wise include:
Sl. No. Description Year Status

COKE MAKING

1. Rebuilding of Coke Oven Battery No-8 at BSL 2019 Likely to be commissioned

SINTER MAKING/AGGLOMERATION

1. Installation of Sinter Plant II, BSL 2019 Likely to be commissioned

IRON MAKING

1. Blast Furnace (BF) with modern facilities such as:

• Conveyor charging system
• Closed Loop Cooling System with soft water as an efficient cooling system
• Modern refractory design
• Flat Cast House design with ramp for use of mobile equipment for maintenance etc.

i) BF#8 at BSP 2018 Commissioned

ii) BF#1 RSP 2018 Blowing-in was done on 8th May, 2018
with the old TB (No.5) and it is
in production.

2. Gas Cleaning Plant (GCP) for improvement in quality of BF gas

i) GCP in BF#8, BSP 2018 Commissioned

3. INBA Cast House Slag Granulation Technology at BSL

i) BF#2, Cast House 4 2018 Commissioned

ii) BF#3, Cast House 5 2019 Likely to be commissioned

iii) BF #1, Cast House 1 & 2 2019 Likely to be commissioned

4. High Hot Blast technology in stoves with waste heat recovery system for achieving HBT of
>1200oC

i) Stoves System in BF#8, BSP 2018 Commissioned

ii) Stoves System in BF#1, RSP 2018 Commissioned

iii) Stoves System in BF#1, BSL 2019 Likely to be commissioned

iv) Stoves System in BF#4, BSL 2019 Likely to be commissioned

5. Top Recovery Turbine in Blast Furnaces for generation of power

BF#8, BSP 2019 Likely to be commissioned

6. Coal dust injection system

i) BF#4, BSP 2019 Likely to be commissioned

ii) BF#8, BSP 2018 Commissioned

STEEL MAKING

1. Installation of 45 MVA SAF at CFP 2019 Likely to be Commissioned

2. SMS III at BSP 2019 Likely to be Commissioned

ROLLING & FINISHING

1. Universal Rail Mill, BSP

i) Walking-beam (WB) type re-heating furnaces 2019 Under Commissioning

ii) Universal stands with quick roll cassette changing facility for easy switch-over of campaigns and
production of universal sections which have inherent advantages of simplicity in fabrication,
higher section modulus to weight ratio, higher buckling strength, etc.

188
Sl. No. Description Year Status

2. Bar & Rod Mill

i) Hot charging of billets to reduce specific fuel consumption 2019 Likely to be commissioned
ii) Walking-beam (WB) type re-heating furnaces
iii) High speed slit rolling with commensurate bar receiving, speed braking & delivery facility in
cooling beds to achieve high production rate, close/ negative tolerance and better surface finish
of lower diameter TMT rods/ bars
iv) Reducing & sizing mills to facilitate size-free rolling (faster changeover of sections to any diameter
in increment of 0.5 mm) of wire rods
v) On-line profile gauges for stock to stock monitoring of important geometric values for minimizing
rejections and taking timely corrective actions
3. Medium Structural Mill, DSP
i) Walking-beam (WB) type re-heating furnaces 2018 Under commissioning
ii) Universal stands with quick roll cassette changing facility for easy switch-over of campaigns and
production of universal sections which have inherent advantages of simplicity in fabrication,
higher section modulus to weight ratio, higher buckling strength, etc.
iii) On-line profile gauges for stock to stock monitoring of important geometric values for minimizing
rejections and taking timely corrective actions
4. New Hot Strip Mill, RSP
i) Walking-beam (WB) type re-heating furnaces with modern features including energy efficient 2019 Commercial production likely to start
digital furnace, crop optimization, heat retention panels.
ii) A new 3.0 MT capacity Hot Strip Mill to meet the market requirements of higher coil weight, wider
strip, higher strength grades for auto body grades and API grades and excellent product qualities.
Features include pair cross rolling, microstructure controlled cooling, online surface inspection,
pallet conveyors etc. it is equipped with high level of automation including process control, MES
& yard management.

Expenditure on Research & Development (` crore)

(a) Capital : 14.77
(b) Revenue : 305.09
Total : 319.86
Total R&D Expenditure as a % of Total Turnover : 0.48
Foreign Exchange Earnings and Outgo (` crore)
i) Foreign Exchange earned from exports and other activities : 2872.64
ii) Foreign Exchange used:
a) CIF Value of imports : 25857.51
b) Other expenditure in foreign currency : 259.23

For and on behalf of the Board of Directors

Sd/-
(Anil Kumar Chaudhary)
Chairman
Place: New Delhi
Dated: 31st July, 2019

189
 Annexure-XII to the Board’s Report

ANNUAL REPORT ON CSR ACTIVITIES 2018-19

1. A brief outline of the CSR Policy, including overview of Projects proposed to be undertaken and a reference to the web link to the CSR Policy and Projects.
1(A) Brief Outline (Objectives) of SAIL CSR Policy:
• Create value for the stakeholders and society that are fundamentally linked to SAIL's core business strategies and operations through its services, conduct & initiatives for their
sustainable development.
• Enhance value creation for the community in which it operates by identifying with the hamlet and foster goodwill towards the Company from those living along the periphery
by enhancing the quality of life of people in the direct impact zone.
• Support the community by assisting the underprivileged.
• Carry out developmental initiatives in order to meet the calls of the present without compromising the ability of future to meet its needs.
• Support local populace by building the image of SAIL as patron of diverse pastoral sports, art & cultures.
• To operate in a socially, environmentally and economically responsible manner, so as to succeed by seeking social license.
1(B) Overview of SAIL CSR Projects/Activities:
All the CSR activities/projects fall in line with Schedule VII of the Companies Act, 2013 focussing on issues which are of foremost concern in the national development agenda:
i. Promoting healthcare including preventive health care, sanitation and access to drinking water.
ii. Promotion of education, employment/livelihood enhancing vocation skills.
iii. Promotion of gender equality, empowering women, facilities for senior citizens and Persons with special abilities and socially-economically backward groups.
iv. Ensuring environmental sustainability, animal welfare and agro-forestry.
v. Protection of national heritage, art and culture.
vi. Training to promote rural sports.
vii. Rural development.
1(C) Web-link for SAIL CSR Policy and Projects:www.sail.co.in
2. Composition of the CSR Committee:
A Board Level Committee on Corporate Social Responsibility comprising Independent and Functional Directors is in place. The members of the CSR Committee are:
Sl.No Name Designation
1 CA K.S. Chauhan Independent Director & Chairman
2 Mrs. Anshu Vaish Independent Director
3 Prof. Ashok Gupta Independent Director
4 Dr. Samar Singh Independent Director
5 Shri K.K. Gupta Independent Director
6 Dr. G. Vishwakarma Director(P&BP) holding Addl. Chg. of Director (Finance)
7 Shri Harinand Rai Director (Technical)
8 Shri Atul Srivastava Director(Personnel)
3. Average Net Profit for last three FYs : `(-)4,145.20 crore
4. Prescribed CSR Expenditure : 'Nil' as 2% of amount as in Item 3 above is in the negative.
5. Details of CSR spent during FY 2018-19 :
a) Total amount to be spent : "Nil" **
b) Amount unspent, if any : "Nil" **
**(NIL as per the provisions of Companies Act, 2013. However, for ongoing core CSR activities, the Board decided to
spend `30 crore)
c) Manner in which the amount spent : Details furnished in prescribed format at Annexure-A.
6. In case the company has failed to spend the 2% of average net profit of the last three FYs or any part thereof, Board's Report to disclose reasons for such non-compliance.
In terms of Section 135(5) of the Companies Act, 2013, 2% of average net profit during the three immediately preceding Financial Years i.e. FY 2015-16 to FY 2017-18 is "Nil".
However, the Board of Directors in order to sustain the ongoing CSR activities in the periphery of Plants and Mines of the Company(which primarily consist of the backward districts)
allocated budget for carrying out CSR interventions in consonance with Schedule-VII to the Companies Act, 2013.
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR policy, is in compliance with CSR Objectives and Policy of the Company.
It may be noted that statutorily the CSR budget is 'Nil' as SAIL has been incurring losses during the Financial Years 2015-16 to 2017-18. The implementation and monitoring of
Corporate Social Responsibility Program, is in compliance with CSR Objectives and Policy of the Company.
During 2018-19, SAIL mainly focused on sustenance of ongoing core CSR activities intertwined with theme of national priority, in the areas of Education, Health, Skills Development,
Women Empowerment, Assistance to Divyangs and Sr. Citizens, etc. in accordance with provisions specified in Schedule-VII to the Companies Act, 2013.
During 2018-19, around 54% of the total expenditure was incurred on thematic program pronounced by the Government of India, viz. promotion of Education and Health under CSR.
In addition, 816 rural youths have been sponsored for ITI trainings. Over 710 youths & 1168 women folks have undergone Skills Development Trainings in industrial trades, soft
skills, hospitality, handlooms, handicrafts, improved agriculture techniques, domestic products, etc. at various Training Centres set up at Plants/Mines of the Company. SAIL is also
instrumental in marketing of the products manufactured at such centres.
SAIL is implementing CSR projects in 7 Aspirational Districts, viz. West Singhbhum, Bokaro & Ranchi in Jharkhand; Kanker, Narayanpur & Rajnandgaon in Chhattisgarh and Nuh in
Haryana. During Financial Year 2018-19, around 23% of the total expenditure has been incurred on development of these 7 Aspirational Districts.
In its endeavor to develop District Nuh, an 'Aspirational District' in Haryana, under the aegis of Ministry of Steel, SAIL is supporting the District Administration, Nuh towards
implementation of the Menstrual Hygiene Management program, i.e. the drive for: distribution of 20 Lakh Sanitary Napkins among girl students and their female family members;
installation of one each of Sanitary Napkin Dispenser and Incinerator and Conduct of awareness/training programs on Menstrual Hygiene covering 100 schools of District Nuh.
The major CSR activities undertaken by SAIL during Financial Year 2018-19 have been elaborated in the prescribed format at Annexure-A to this Report.

Sd/- Sd/- Sd/-

(Atul Srivastava) (Dr. G. Vishwakarma) (CA K.S. Chauhan)
Director (Personnel) Director (P&BP) Chairman, CSR Committee
SAIL with Addl. Chg. of SAIL
Director(Finance) SAIL

190
 Annexure-A to the Report on CSR Activities
SAIL CSR PROJECTS/ACTIVITES UNDERTAKEN DURING 2018-19
(` crore)
Sl. CSR Project or activity identified Sector in which the Projects (State & Amount Amount spent Cumulative Amount spent :
No. project is covered District where projects outlay on the projects: expenditure Direct or through
Schedule VII of the were undertaken) (budget) Direct (2014-15 to implementing
Companies Act, 2013 projects expenditure 2018-19) agency
wise or Overheads

1 2 3 4 5 6 7 8

In the peripheral areas of Direct and through

1 Eradicating hunger, poverty and malnutrition, promoting Cl.(i) Healthcare, Drinking SAIL Plants and Units. The 6.46 5.60 54.66 Implementing
healthcare including preventive health care and sanitation, Water & Sanitation districts covered are Durg, Agencies, viz. Akshay
construction of toilets under SVA and making available Bilaspur, Balod, Kanker, Patra Fdn, Sw.
safe drinking water; Narayanpur, Dhamtari, Vivekakanda Vani
Rajnandgaon, Champa in Prachar Samity, Mahila
2 Promotion of education including special education and Cl.(ii) Education & Chhattisgarh, Paschim 15.93 14.74 66.01
Samity, Ramakrishna
employment enhancing vocation skills especially among Livelihood Generation Bhardman, Bankura, South Mission, Bharati
children, women, elderly and differently abled and 24 parganas, Nadia and Bhaban, Women
livelihood enhancement projects; Kolkata in W.Bengal, Voluntary Services,
3 Promotion of gender equality and empowering women, Cl.(iii) Women Sudergarh & Keonjhar in 2.28 0.82 10.42 Burnpur Mahila Samaj,
setting up homes and hostel for women and orphans; Empowerment & Care for Odisha, Bokaro, Jharcraft, Shamayita
setting up old age homes, day care centers and such Sr. Citizens & PwDs W.Singhbhum, Garhwa, Math, Burnpur
other facilities for senior citizens and measures for reducing Dhanbad, Ranchi & Khunti Ambagan Vol. Sol. Wel.
inequalities faced by socially and economically backward in Jharkhand, Salem & Org.,The Art of Living,
groups; Chennai in Tamil Nadu, Durgapur,Durgapur
Chandrapur in Mishra Ispat Abasik
4 Protection of heritage, art, culture & Training to promote Cl.(v) & (vii) Promotion of Maharashtra, Nuh in 1.45 6.18 21.03 Mahila Samaj, Peace
rural sports,Nationally recognised sports, paralympic Sports, Art & Culture Haryana, etc. House Welfare Trust,
sports and Olympic sports; Gopalmath Sisu Kalyan
Samity, Industrial
5 Ensuring environmental sustainability, flora and fauna, Cl.(iv) Environment 1.57 1.62 23.68 Training Institute,
animal welfare, agroforestry, conservation of natural sustainability CIPET, Intensive Khadi
resources and maintaining quality of soil, air and water; Rural Dev. Center, State
agencies, Bhilai Ispat
6 Rural development projects Cl.(x) Infrastructure & 0.99 1.84 17.61 Kaushal Kutir,
Rural Dev Swayamsiddha, DSP
Mahila Samaj,
7 Capacity Building. CSR Rules, 2014 Cl.4(6) 0.05 0.39 3.73
SRREOSHI, Sona
8 Provisions for Disaster Relief & Additional allocation for 1.25 0.00 0.00 College of Technology,
CSR projects as per Schedule-VII SCEWASTAMB &
General Circular No. 21/2014 dt.18/8/14 Balagoda SHG
Annexure Pt.7 of Para (i) Aashaye, Gua, Deen-
Disha Centre(S.E.C.)
Total 30.00 31.18 197.14 Manoharpur, Society
for Rural
Industrialisation,
Missionaries of charity,
Cheshire Home, Tamil
Nadu PWD, etc.

191
 PRINCIPAL EXECUTIVES AS ON 09.07.2019

CORPORATE OFFICE STEEL PLANTS / UNITS Alloy Steels Plant

Executive Director
NEW DELHI Bhilai Steel Plant
P. K. Pradhan (Addl. Charge)
Chief Executive Officer
Chairman Anirban Dasgupta Salem Steel Plant
Anil Kumar Chaudhary Executive Directors Executive Director
Directors Works Sanjeev Taneja
Projects & Business Planning with P. K. Dash
Visvesvaraya Iron & Steel Plant
Additional Charge of Director (Finance) Finance & Accounts
Executive Director
Dr. G. Vishwakarma B. P. Nayak
K.L.S. Rao
Commercial Materials Management
Ms. Soma Mondal S. K. Basar Khairul UNITS
Personnel Mines & Rowghat
M. Biswas Research & Development Centre for Iron & Steel
Atul Srivastava Executive Director
Technical M&HS
Dr. S.K. Issar - Director I/c Ajay Arora
Harinand Rai
Raw Materials & Logistics Personnel & Administration Raw Materials Division
Vivek Gupta K. K. Singh Executive Director
Durgapur Steel Plant Personnel & Administration
Executive Directors Amitabha Bhattacharya
Chief Executive Officer (DSP & ASP)
Power, Elec. & SAILCON RP&E
A.V. Kamlakar
Tejveer Singh P. C. Naik
Executive Directors
Vigilance Projects
Personnel & Administration
S. Sitapati V. K. Jha
P. K. Pradhan
Chairman's Sectt.
Projects
D. K. Mohanty Centre for Engineering & Technology
T. B. Singh
Operations Executive Director
M&HS
A. Devadas K. Das
Dr. K. N. Thakur - Director I/c
Coal Import Group
Materials Management Central Marketing Organisation
Deepak Daftuar
S. Nandi Executive Directors
Projects
Rourkela Steel Plant Marketing - Commercial
K. V. Ramana
Chief Executive Officer Alok Sahay
CMMG
D. Chattaraj Marketing - ITD
Sanjay Sharma
Executive Directors B. Chongdar
Internal Audit
Personnel & Administration Marketing
Rajesh Bhasin
R. V. Singh M. C. Agarwal
Company Secretary Works Marketing Services
M. B. Balakrishnan G. Banerjee A. V. Purandare
Materials Management Marketing - SPU
Chief of Corporate Affairs D. Kumar
Ms. Sumita Dutta D. K. Mohapatra
Bokaro Steel Plant Logistics & Infrastructure
Safety Executive Director
Chief Executive Officer
Executive Director L. N. Mallick
P. K. Singh
K. K. Jha
Executive Directors
SAIL Refractory Unit
Management Training Institute M&HS
Executive Director
Executive Director Dr. A. K. Singh - Director I/c
S. Mondal
Mrs. Kamakshi Raman Works
R. C. Srivastava Chandrapur Ferro Alloy Plant.
Growth Division Personnel & Administration Executive Director
Environment Management Division M. Prasad R. Gopal
Executive Director Projects
Kalyan Maity R. Kushwaha Collieries
Materials Management Executive Director
V. K. Pandey Arvind Kumar

IISCO Steel Plant

Chief Executive Officer
A. V. Kamlakar
Executive Directors
Projects
A. R. Dasgupta
Materials Management
S. P. Singh
Works
A. K. Singh

192
 STEEL AUTHORITY OF INDIA LIMITED
REGISTERED OFFICE: ISPAT BHAWAN, LODI ROAD, NEW DELHI-110003
CIN: L27109DL1973GOI006454

NOTICE
NOTICE IS HEREBY GIVEN THAT the 47th Annual General Meeting of the Members of Krishan Kumar Gupta (DIN: 03476812), who was appointed as an Additional Director
Steel Authority of India Limited will be held at 1030 hours on Friday, the 30th August, pursuant to the provisions of Section 161 of the Companies Act, 2013 and the
2019, at NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001 to transact the Articles of Association of the Company and who holds office upto the date of this
following business: Annual General Meeting and in respect of whom the Company has received a notice
ORDINARY BUSINESS in writing under Section 160 of the Companies Act, 2013, proposing his candidature
for the office of Director, be and is hereby appointed as an Independent Director of
1. To receive, consider and adopt: the Company to hold office for 3 (three) consecutive years for a term upto 20th
(i) the Audited Standalone Financial Statements of the Company for the Financial December, 2021."
Year ended 31st March, 2019, together with Reports of the Board of Directors 10. To appoint Shri Vivek Gupta (DIN:08370793) as a Whole Time Director and in this
and Auditors thereon. regard to consider and if thought fit, to pass, with or without modification(s), the
(ii) the Audited Consolidated Financial Statements of the Company for the Financial following resolution as an Ordinary Resolution:
Year ended 31st March, 2019 and the Report of the Auditors thereon. "RESOLVED THAT Shri Vivek Gupta (DIN:08370793), who was appointed as an
2. To appoint a director in place of Ms. Soma Mondal (DIN:06845389), who retires by Additional Director of the Company by the Board of Directors under Section 161 of
rotation at this Annual General Meeting and is eligible for re-appointment. the Companies Act, 2013 and the Articles of Association of the Company and who
3. To appoint a director in place of Shri Atul Srivastava (DIN:07957068), who retires holds office upto the date of this Annual General Meeting and in respect of whom
by rotation at this Annual General Meeting and is eligible for re-appointment. the Company has received a notice in writing, proposing his candidature for the
office of Director, under Section 160 of the Companies Act, 2013, be and is hereby
4. To fix the remuneration of the Auditors of the Company appointed by the Comptroller appointed as a Director of the Company, liable to retire by rotation."
& Auditor General of India for the Financial Year 2019-20.
11. To obtain consent for Borrowings and creation of charge on the assets of the
5. To declare Final Dividend for the Financial Year 2018-19 @ `0.50 per Equity Share Company and in this regard to consider and if thought fit, to pass with or without
of face value of `10/- each. modification(s), the following resolutions as Special Resolutions:
SPECIAL BUSINESS "RESOLVED THAT pursuant to the provisions of Section 42 of the Companies Act,
6. To re-appoint CA Parmod Bindal (DIN:06389570) as an Independent Director and 2013 read with Rule 14 of the Companies (Prospectus and Allotment of Securities)
in this regard to consider and if thought fit, to pass, with or without modification(s), Rules, 2014 and any other applicable provisions of the Companies Act, 2013, the
the following resolution as a Special Resolution: Board of Directors of the Company be and is hereby authorized to make Offer(s) or
Invitation(s) to raise funds through Private Placement of Secured Non-convertible
"RESOLVED THAT pursuant to the provisions of sections 149 and 152 read with
Debentures/Bonds of up to `5,000 crore, during a period of one year from the date
Schedule IV and all other applicable provisions of the Companies Act, 2013, CA
of this Annual General Meeting, in one or more tranches to such person or persons,
Parmod Bindal (DIN:06389570), who was re-appointed as an Additional Director
including eligible investors (whether residents and/or non-residents and/or
pursuant to the provisions of Section 161 of the Companies Act, 2013 and the
institutions/corporate bodies and/or individuals and/or trustees and/or banks or
Articles of Association of the Company and who holds office upto the date of this
otherwise, in domestic and/or one or more international markets), Non-resident
Annual General Meeting and in respect of whom the Company has received a notice
Indians, Foreign Institutional Investors (FIIs), Venture Capital Funds, Foreign Venture
in writing under Section 160 of the Companies Act, 2013, proposing his candidature
Capital Investors, State Industrial Developments Corporations, Insurance Companies,
for the office of Director, be and is hereby re-appointed as an Independent Director
Provident Funds, Pension Funds, Development Financial Institutions, Bodies
of the Company to hold office for 1 (one) year for a term upto 17th November,
Corporate, companies, private or public, or other entities, authorities and such
2019."
other persons, who may or may not be the bond/debenture holders of the Company,
7. To re-appoint Prof. Ashok Gupta (DIN:07342950) as an Independent Director and in one or more combinations thereof, including the green-shoe option (within overall
in this regard to consider and if thought fit, to pass, with or without modification(s), limit of `5,000 crore, as stated above), as the Board may, at its sole discretion
the following resolution as a Special Resolution: decide on such terms and conditions as may be finalized by the Board or any
"RESOLVED THAT pursuant to the provisions of sections 149 and 152 read with Committee thereof as may be approved and authorized by the Board or such other
Schedule IV and all other applicable provisions of the Companies Act, 2013, Prof. functionary of the Company as may be approved by the Board/ or such Committee."
Ashok Gupta (DIN:07342950), who was re-appointed as an Additional Director "RESOLVED FURTHER THAT consent of the Company be and is hereby accorded
pursuant to the provisions of Section 161 of the Companies Act, 2013 and the in terms of Section 180 (1)(a) and other applicable provisions, if any, of the
Articles of Association of the Company and who holds office upto the date of this Companies Act, 2013 read with the Companies (Management and Administration)
Annual General Meeting and in respect of whom the Company has received a notice Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for
in writing under Section 160 of the Companies Act, 2013, proposing his candidature the time being in force) and any other applicable laws and provisions of Articles of
for the office of Director, be and is hereby re-appointed as an Independent Director Association of the Company, to the Board of Directors of the Company (the "Board")
of the Company to hold office for 1 (one) year for a term upto 17th November, or any Committee thereof, to create charge, hypothecate, mortgage, pledge in
2019." addition to existing charges, mortgages and hypothecations created by the Company
8. To re-appoint Mrs. Anshu Vaish (DIN:02924346) as an Independent Director and in on any movable and/or immovable properties of the Company wheresoever situated,
this regard to consider and if thought fit, to pass, with or without modification(s), both present and future and on the whole or substantially the whole of the undertaking
the following resolution as a Special Resolution: or undertakings of the Company in favour of any banks, financial institutions, hire
purchase/lease companies, body corporates, trustees for the holders of Debentures/
"RESOLVED THAT pursuant to the provisions of sections 149 and 152 read with
Bonds/Other Instruments/Securities or any other persons on such terms and
Schedule IV and all other applicable provisions of the Companies Act, 2013, Mrs.
conditions and covenants as the Board or any Committee thereof may think fit for
Anshu Vaish (DIN:02924346), who was re-appointed as an Additional Director
securing borrowings of funds, availed or to be availed, from time to time, by way of
pursuant to the provisions of Section 161 of the Companies Act, 2013 and the
Term Loans, External Commercial Borrowings, issue of Debentures/Bonds, etc.
Articles of Association of the Company and who holds office upto the date of this
not exceeding the limit approved by the Shareholders in terms of Section 180(1)(c)
Annual General Meeting and in respect of whom the Company has received a notice
of the Companies Act, 2013.
in writing under Section 160 of the Companies Act, 2013, proposing her candidature
for the office of Director, be and is hereby re-appointed as an Independent Director "RESOLVED FURTHER THAT the Board of Directors of the Company, be and is
of the Company to hold office for 1 (one) year for a term upto 17th November, hereby authorized to authorize the Committee of the Board to determine the terms
2019." of the Issue, including the class of investors to whom the bonds/debentures are to
be allotted, the number of bonds/debentures to be allotted in each tranche, issue
9. To appoint Shri Krishan Kumar Gupta (DIN:03476812) as an Independent Director
price, tenor, interest rate, premium/discount to the then prevailing market price,
and in this regard to consider and if thought fit, to pass, with or without
amount of issue, discount to issue price to a class of bond/debenture holders,
modification(s), the following resolution as an Ordinary Resolution:
listing, issuing any declaration/undertaking, etc. required to be included in the Private
"RESOLVED THAT pursuant to the provisions of sections 149 and 152 read with Placement Offer Letter and any other regulatory requirement for the time being in
Schedule IV and all other applicable provisions of the Companies Act, 2013, Shri force."

193
 "RESOLVED FURTHER THAT the Board of Directors of the Company and /or a M/s. R.J. Goel & Co., New Delhi (for Bhilai Steel Plant and Rourkela Steel Plant) and
Committee thereof as may be approved and authorized by the Board, if any, be and M/s. R.M. Bansal & Co., Kanpur (for Alloy Steels Plant, Salem Steel Plant and
are hereby authorized to do all necessary acts, deeds, actions, and other things Visvesvaraya Iron and Steel Plant) for the Financial Year 2019-20, as approved by
and to take all such steps as may be required or considered necessary or incidental the Board of Directors, be and is hereby ratified."
thereto for giving effect to this resolution." "RESOLVED FURTHER THAT the Board of Directors of the Company be and is
"RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to do all acts and take all such steps as may be necessary,
hereby authorized to delegate all or any of the powers herein conferred to any proper or expedient to give effect to this resolution."
Committee of Directors or any one or more Directors of the Company."
By order of the Board of Directors
12. To ratify the remuneration of the Cost Auditors of the Company and in this regard to
consider, and if thought fit, to pass, with or without modification(s), the following
resolution as an Ordinary Resolution.
(M.B. Balakrishnan)
"RESOLVED THAT pursuant to the provisions of Section 148 and other applicable Company Secretary
provisions, if any, of the Companies Act, 2013 and the Companies (Audit and Place: New Delhi
Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment Dated: 31st July, 2019
thereof, for the time being in force), the remuneration of `11,70,000/- plus taxes as Registered Office:
applicable and reimbursement of Daily Allowance, Travelling Expenses and out of Ispat Bhawan, Lodi Road, New Delhi-110003.
pocket expenses to be paid to the Cost Auditors viz. M/s. Shome & Banerjee, CIN: L27109DL1973GOI006454
Kolkata (for Bokaro Steel Plant, Durgapur Steel Plant and IISCO Steel Plant),

Notes: of trading. Further, SEBI vide Notification No. SEBI/LAD-NRO/GN/2018/24 dated

1. The relevant Explanatory Statement, pursuant to Section 102(1) of the Companies 8th June, 2018 (subsequently amended), has mandated that w.e.f. 1st April, 2019,
Act, 2013, in respect of the business Item Nos. 6 to 12 above is annexed hereto. transfer of shares in a Listed Company shall only be in Dematerlised Form.
The relevant details of the person(s) seeking appointment/re-appointment as Director Though most of the shareholders have converted their holdings into Demat Form,
required vide Regulation 36(3) of SEBI (Listing Obligations and Disclosure it is seen that some shareholders still hold their shares in paper form (Physical).
Requirements) Regulations, 2015 are also annexed. In this connection, shareholders are advised, to open a Demat Account with any
depository participant authorized by either National Securities Depository Ltd.
2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO or Central Depository Services Ltd. and dematerialize their shares.
APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF. SUCH PROXY
NEED NOT BE A MEMBER OF THE COMPANY. PROXIES IN ORDER TO BE EFFECTIVE ii) Members holding shares in the physical form should notify change in their addresses,
MUST BE RECEIVED BY THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE if any, to the R&TA specifying full address in block letters with PIN CODE of their
COMMENCEMENT OF THE MEETING. THE PROXY FORM IS ENCLOSED. post offices, which is mandatory. Members holding shares in the Electronic Form
(Demat), should inform the change of address to their Depository Participant.
A PERSON CAN ACT AS A PROXY ON BEHALF OF MEMBERS NOT EXCEEDING
FIFTY AND HOLDING IN THE AGGREGATE NOT MORE THAN TEN PERCENT OF iii) For making nomination, Members holding shares in physical form are advised to
THE TOTAL SHARE CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS. A collect the Nomination Form from the Company's Share & Transfer Agents and
MEMBER HOLDING MORE THAN TEN PERCENT OF THE TOTAL SHARE CAPITAL Members holding shares in Electronic Form, may obtain the Nomination Form from
OF THE COMPANY CARRYING VOTING RIGHTS MAY APPOINT A SINGLE PERSON their respective Depository Participant(s).
AS PROXY AND SUCH PERSON SHALL NOT ACT AS A PROXY FOR ANY OTHER iv) EFT MANDATE
PERSON OR SHAREHOLDER. Shareholders holding shares, whether in Physical or Demat form are advised to
3. Only Members carrying the attendance slips or holders of valid proxies registered opt for Electronic Fund Transfer (EFT), for any future payouts from the Company.
with the Company will be permitted to attend the meeting. In case of shares held in Securities and Exchange Board of India (SEBI) vide Circular No. SEBI/HO/MIRSD/
joint names or shares held under different registered folios wherein the name of the DOP1/CIR/2018/73 dated 20th April, 2018 has directed to make payment of
sole holder/first joint-holder is same, only the first joint-holder/sole holder or any dividend only through approved electronic mode and Bank Details and PAN of
proxy appointed by such holder, as the case may be, will be permitted to attend the the shareholders be obtained, updated against their folio, if not already available
meeting. with the Company. Under the EFT, the payment instruction is issued by the banker
4. Corporate Members intending to send their authorised representative(s) to attend (Payer's banker) electronically to the clearing authority (RBI or SBI). The clearing
the meeting are requested to submit to the Company a certified true copy of the authority provides credit reports to the payee's Bank, who credits the amount to
relevant Board Resolution alongwith the specimen signature(s) of the their respective accounts. It becomes inevitable that the shareholders opting
representative(s) authorised to attend and vote on their behalf at the meeting. for EFT should provide details of their Bank Name, IFSC Code, A/c No., A/c Type,
Branch Name, 9 digit MICR No. along with their Name and Folio Number (DP-ID/
5. Members attending the meeting are requested to bring their copy of the Annual Client ID) to the Company if their holding is in Physical Form and to the Depository
Report as extra copies will not be provided. participant, if their holding is in Demat Form. Accordingly, Shareholders holding
6. The Register of Members of the Company will remain closed from Saturday, shares in Physical form and receiving dividend by Dividend Warrant/Demand
24th August, 2019 to Friday, 30th August, 2019 (both days inclusive), for the purpose Draft, etc. are requested to fill the attached Form and submit it along with a
of AGM and payment of dividend for Financial Year 2018-19. If dividend, as copy of the Self-attested PANCARD, an Original Cancelled Cheque Leaflet/
recommended by the Board of Directors is approved at the Meeting, payment of Attested Bank Passbook Copy showing Name of the Account Holder to
such dividend will be made on and from Thursday, 5th September, 2019 in respect M/s. MCS Share Transfer Agents Limited, R&TA of SAIL, to update the records
of (i) Shares held in Physical Form, to all those Members whose name appears on for payment of any dividend in future.
the Company's Register of Members as on Friday, 23rd August, 2019 after giving 9. Members holding shares in identical order of names in more than one folio are
effect to valid requests for Transmission or Transposition lodged with the Company requested to write to the Company/R&TA enclosing their Share Certificates to enable
on or before the close of business hours on Friday, 23rd August, 2019 and (ii) the Company to consolidate their holdings in one folio.
Shares held in Electronic Form, to all beneficial owners of the shares, as per details
furnished by the Depositories for this purpose, as of the close of business hours on 10. The Company has transferred to Investor Education and Protection Fund, unclaimed
Friday, 23rd August, 2019. dividends till Financial Year 2011-12(Interim). The Company has, thereafter, paid/
declared the following dividends:
7. M/s. MCS Share Transfer Agents Limited are acting as the Registrar and Transfer
Agent (R&TA) for carrying out the Company's entire share related activities viz. Year Interim Dividend (%) Final Dividend (%)
Transfer/ transmission/ transposition/ dematerialisation/ rematerialisation/ split/ 2011-2012 8.00
consolidation of shares, change of address, bank mandate, filing of nomination,
dividend payment and allied activities. Shareholders are requested to make all future 2012-2013 16.00 4.00
correspondence related to share transfer and allied activities with this agency only 2013-2014 20.20 -
at the following address:
2014-2015 17.50 2.50
M/s. MCS Share Transfer Agents Limited,
F-65, 1st Floor, Okhla Industrial Area, Phase-I, 2015-2016 - -
New Delhi-110020 2016-2017 - -
Phone No.011-41406149, E-mail: [email protected]
2017-2018 - -
8. Dematerialisation
i) Securities and Exchange Board of India (SEBI) Regulations provide that equity shares Shareholders who have not encashed their dividend warrants as above are requested
of SAIL are to be compulsorily delivered in the dematerialized form, for the purpose to make their claims to the Company.

194
 Section 124(5) of the Companies Act, 2013 read with Investor Education and VII. A person who becomes a Member of the Company after dispatch of the Notice
Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, of the AGM and holding shares as on cut-off date i.e. 23rd August, 2019, can
("Rules") provide that, any money transferred to the Unpaid Dividend Account of a follow the process for generating the Login ID and Password as provided
company in pursuance of this section which remains unpaid or unclaimed for a in the Notice of the AGM.
period of seven years from the date of such transfer, shall be transferred by the VIII. The remote e-voting period commences on 27th August, 2019 (9:00 am) and
company along with interest accrued, if any, thereon to the Investor Education and ends on 29th August, 2019 (5:00 pm). During this period Members of the
Protection Fund (IEPF). Pursuant to the above provisions, the Company has Company, holding shares either in physical form or in dematerialized form, as
transferred all upaid/unclaimed dividend declared by it upto Financial year 2011-12 on the cut-off date of 23rd August, 2019, may cast their vote by remote e-
(interim dividend). Upon completion of a period of seven years, the Company would voting. The remote e-voting module will be disabled by M/s. NSDL for voting
transfer the unclaimed /unpaid dividend (final) of Financial year 2011-12 in November, upon the expiry of the above period. Once the vote on a resolution is cast by
2019. a Member, the Member shall not be allowed to change it subsequently or
Section 124(6) of the Companies Act, 2013 read with Rules provide that all shares cast the vote again.
in respect of which dividend has not been paid or claimed for seven consecutive IX. The Scrutinizer, after scrutinizing the votes cast at the venue of the AGM
years or more shall be transferred by the company in the name of IEPF. The Company (ballot paper) and through remote e-voting, will, not later than 48 Hours from
has complied with the provisions and transferred the Shares, which had become the conclusion of the AGM, make a consolidated scrutiniser's report and submit
eligible for transfer to IEPF after following the due process. The Company has sent the same to the Chairman or a person authorized by him in writing. The results
individual communication(s) to the concerned shareholders whose dividend has declared alongwith with the consolidated scrutiniser's report shall be placed
remained unpaid or unclaimed for seven consecutive years, providing complete on the website of the Company-www.sail.co.in and on the website of NSDL.
details of the shares due for transfer to IEPF. The Company has also published The results shall be simultaneously communicated to the Stock Exchanges.
Notice in the newspapers advising such shareholders to encash their unclaimed
dividend to avoid transfer of the shares. Details of such Shareholders and Shares X. Subject to receipt of requisite number of votes, the Resolutions shall be deemed
due for transfer to IEPF has been uploaded on the Company's website. to be passed on the date of the AGM i.e.30th August, 2019.
Claimants of the dividend /shares transferred to IEPF are entitled to claim refund by XI. The process and manner for remote e-voting are as under:
applying to IEPF. A. The way to vote electronically on NSDL e-Voting system consists of "Two
11. Members seeking further information on the Accounts or any other matter contained Steps" which are mentioned below:
in the Notice, are requested to write to the Company at least 7 days before the Step 1: Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/
meeting so that relevant information can be kept ready at the meeting.
Step 2: Cast your vote electronically on NSDL e-Voting system.
12. Green Initiative in Corporate Governance of Ministry of Corporate Affairs
Details on Step 1 are mentioned below:
The Ministry of Corporate Affairs ("Ministry") has taken a "Green Initiative in Corporate
Governance" by allowing paperless compliances by companies through electronic How to Log-in to NSDL e-Voting website?
mode. In accordance with the circulars issued by the Ministry of Corporate Affairs, (i) Visit the e-Voting website of NSDL. Open web browser by typing the following
companies can now send various notices /documents (including notice(s) calling URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a
General Meeting(s), Audited Financial Statements, Board's Report, Auditors' Report, mobile.
etc.) to their shareholders through electronic mode, to the registered
(ii) Once the home page of e-Voting system is launched, click on the icon "Login"
E-mail addresses of the shareholders.
which is available under 'Shareholders' section.
Members are requested to opt for receipt of the above notices/documents through
(iii) A new screen will open. You will have to enter your User ID, your Password
electronic mode. They are requested to register their e-mail ID for this purpose with
and a Verification Code as shown on the screen.
their respective depository participant or with the Company's R&TA i.e. M/s. MCS
Share Transfer Agents Limited at the address given above or e-mail at Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-
[email protected] in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you
Please note that these documents will also be available on the Company's website log-in to NSDL eservices after using your log-in credentials, click on e-Voting
www.sail.co.in and physical copies of the same will also be available at the registered and you can proceed to Step 2 i.e. Cast your vote electronically.
office as mentioned herein above for inspection during office hours. (iv) Your User ID details are given below:
13. Entry to the Auditorium will be strictly against Entry Slip available at the counters Manner of holding shares i.e. Your User ID is:
at the venue and against exchange of Attendance Slip. Demat (NSDL or CDSL) or Physical
14. No Brief case or Bag or mobile phone will be allowed to be taken inside the
auditorium. a) For Members who hold shares in 8 Character DP ID followed by 8 Digit
15. General Information and Instructions for E-voting: demat account with NSDL. Client ID
I. In compliance with provisions of Section 108 of the Companies Act, 2013,
and the Companies (Management and Administration) Rules, 2014 as For example if your DP ID is IN300***
amended, and other applicable provisions, if any, of the Companies Act, 2013 and Client ID is 12****** then your
and Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements), user ID is IN300***12******.
Regulations, 2015, the Company is pleased to provide its Members the facility
to exercise their right to vote on resolutions proposed to be considered at the b) For Members who hold shares in 16 Digit Beneficiary ID
Annual General Meeting (AGM) by electronic means. The Members may cast demat account with CDSL. For example if your Beneficiary ID is
their votes using an electric voting system from a place other than the venue 12************** then your user
of the AGM (remote e-voting). ID is 12**************
II. The facility for voting through ballot paper shall be made available at the venue
of the AGM and the Members attending the AGM who have not cast their vote c) For Members holding shares in EVEN Number followed by Folio
by remote e-voting shall be able to vote at the AGM through ballot paper Physical Form. Number registered with the company
voting system. For example if folio number is 001***
III. The Members who have cast their vote by remote e-voting prior to the AGM and EVEN is 101456 then user ID is
may also attend the AGM but shall not be entitled to cast their vote again. 101456001***
IV. The Company has engaged the services of M/s. National Securities Depository (v) Your password details are given below:
Limited as the Agency to provide remote e-voting facility.
V. The Board of Directors of the Company has appointed Shri Sachin Agarwal, a (a) If you are already registered for e-Voting, then you can use your existing
Company Secretary in Practice of the Company Secretary Firm-M/s. Agarwal password to login and cast your vote.
S. & Associates (and in his absence Ms. Karishma Singh of M/s. Agarwal S.
(b) If you are using NSDL e-Voting system for the first time, you will need to
& Associates) as Scrutiniser to scrutinize the remote e-voting and voting at
retrieve the 'initial password' which was communicated to you. Once
the venue of the AGM through ballot paper in a fair and transparent manner
you retrieve your 'initial password', you need to enter the 'initial password'
and he/she has communicated his/her willingness to be appointed and available
and the system will force you to change your initial password.
for the same purpose.
VI. A person whose name is recorded in the Register of Members or in the Register (c) How to retrieve your 'initial password'?
of Beneficial Owners maintained by the depositories as on the cut-off date i.e. (i) If your email ID is registered in your demat account or with the
23rd August, 2019 only shall be entitled to avail the facility of remote e-voting company, your 'initial password' is communicated to you on your
or voting at the venue of the AGM through ballot paper. email ID. Trace the email sent to you from NSDL from your mailbox.

195
 Open the email and open the attachment i.e. a .pdf file. Open the 5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/
.pdf file. The password to open the .pdf file is your 8 digit client ID modify the number of shares for which you wish to cast your vote and click
for NSDL account, last 8 digits of client ID for CDSL account or on "Submit" and also "Confirm" when prompted.
folio number for shares held in physical form. The .pdf file contains 6. Upon confirmation, the message "Vote cast successfully" will be displayed.
your 'User ID' and your 'initial password'.
7. You can also take the printout of the votes cast by you by clicking on the print
(ii) If your email ID is not registered, you can send a request at option on the confirmation page.
[email protected] mentioning your demat account number/folio
number, your PAN, your name and your registered address. 8. Once you confirm your vote on the resolution, you will not be allowed to
modify your vote.
(vi) If you are unable to retrieve or have not received the " Initial password" or have
forgotten your password: B. Institutional shareholders (i.e. other than individuals, HUF, NRI, etc.) are required
to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/
a) Click on "Forgot User Details/Password?"(If you are holding shares in
Authority letter, etc. with attested specimen signature of the duly authorized
your demat account with NSDL or CDSL) option available on
signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to
www.evoting.nsdl.com.
[email protected] with a copy marked to NSDL's email ID-
b) "Physical User Reset Password?" (If you are holding shares in physical [email protected].
mode) option available on www.evoting.nsdl.com.
C. It is strongly recommended not to share your password with any other person
(c) If you are still unable to get the password by aforesaid two options, you and take utmost care to keep your password confidential. Login to the e-
can send a request at [email protected] mentioning your demat account voting website will be disabled upon five unsuccessful attempts to key in the
number/folio number, your PAN, your name and your registered address. correct password. In such an event, you will need to go through the "Forgot
(d) Members can also use the OTP (One Time Password) based Login for User Details/Password?" or "Physical User Reset Password?" option available
casting the votes on the e-voting system of NSDL. on www.evoting.nsdl.com to reset the password.
(vii) After entering your password, tick on Agree to "Terms and Conditions" by D. In case of any queries, you may refer the Frequently Asked Questions (FAQs)
selecting on the check box. for Shareholders and e-voting user manual for Shareholders available at the
(viii) Now, you will have to click on "Login" button. download section of www.evoting.nsdl.com or call on toll free no.: 1800-
222-990 or send a request at [email protected].
(ix) After you click on the "Login" button, Home page of e-Voting will open.
XII. Those who became Members of the Company after dispatch of the Notice but
Details on Step 2 are given below: on or before cut-off date may mail to NSDL at [email protected], requesting
How to cast your vote electronically on NSDL e-Voting system? for user ID and password. On receipt of user ID and password, the details on
1. After successful login at Step 1, you will be able to see the Home page of e- step 2 in A above should be followed for casting of vote.
Voting. Click on e-Voting. Then, click on Active Voting Cycles. XIII. In case of any query/grievance, you may refer to the Frequently Asked Questions
2. After clicking on Active Voting Cycles, you will be able to see all the companies (FAQs) and e-voting Manual available under the Help section of NSDL's e-
"EVEN" in which you are holding shares and whose voting cycle is in active voting website-www.evoting.nsdl.com or contact Ms. Pallavi, Manager, National
status. Securities Depository Limited, Trade World, 'A' Wing, 4th & 5th Floors, Kamala
Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai-400013 at
3. Select "EVEN" of company for which you wish to cast your vote. telephone no. 91-22-24994545/91-22-24994600 or toll free No. 1800 222
4. Now you are ready for e-Voting as the Voting page opens. 990 or at email ID: [email protected]

ANNEXURE TO THE NOTICE

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013
Item No. 6 a Director and recommends this Resolution for approval of the shareholders, as a Special
CA Parmod Bindal(DIN:06389570), on nomination by the President of India vide Resolution.
Government's Order F.No. 6(13)/2015-BLA dated 13th November, 2015, was appointed Item No.7
as Non-Official Independent Director of the Company for a period of three years with Prof. Ashok Gupta(DIN: 07342950), on nomination by the President of India vide
effect from 18th November, 2015. Government of India, Ministry of Steel vide Order Government's Order F.No. 6(13)/2015-BLA dated 13th November, 2015, was appointed
F.No. 1(10)/2015-BLA(Vol-III-Pt.) dated 19th November, 2018 has re-appointed CA Parmod as Non-Official Independent Director of the Company for a period of three years with
Bindal as an Independent Director of the Company with effect from 18th November, 2018 effect from 18th November, 2015. Government of India, Ministry of Steel vide Order
for a period of one year from the date of completion of his existing tenure or till further F.No. 1(10)/2015-BLA(Vol-III-Pt.) dated 19th November, 2018 has re-appointed Prof. Ashok
orders, whichever is earlier. Accordingly, the Board of Directors of the Company has re- Gupta as an Independent Director of the Company with effect from 18th November, 2018
appointed CA Parmod Bindal as an Additional Director of the Company w.e.f. 18th for a period of one year from the date of completion of his existing tenure or till further
November, 2018. His tenure as Non-Official Independent Director is for a period of one orders, whichever is earlier. Accordingly, the Board of Directors of the Company has re-
year with effect from 18th November, 2018 or until further orders, whichever is earlier. In appointed Prof. Ashok Gupta as an Additional Director of the Company w.e.f. 18th
terms of the provisions of Section 161(1) of the Companies Act, 2013, CA Parmod November, 2018. His tenure as Non-Official Independent Director is for a period of one
Bindal would hold office upto the date of the ensuing Annual General Meeting. The year with effect from 18th November, 2018 or until further orders, whichever is earlier. In
Company has received a notice in writing under Section 160 of the Act proposing the terms of the provisions of Section 161(1) of the Companies Act, 2013, Prof. Ashok
candidature of CA Parmod Bindal for the office of Director of the Company. Gupta would hold office upto the date of the ensuing Annual General Meeting. The Company
CA Parmod Bindal, aged 57 years, is a practicing Chartered Accountant (CA) based at has received a notice in writing under Section 160 of the Act proposing the candidature
Chandigarh. He passed CA final examination in November, 1989 from the Institute of of Prof. Ashok Gupta for the office of Director of the Company.
Chartered Accountants of India. He has also done certificate course of Arbitration in Prof. Ashok Gupta, aged 62 years, is a Professor in the Department of Civil Engineering,
2005 and Certificate Course of Indirect Taxes in 2013, both from the Institute of Chartered IIT, Delhi. He obtained his B. Tech. in Civil Engineering from IIT, Delhi in 1979 and Ph. D.
Accountants of India. His area of specialization is Direct and Indirect Taxes, Company from IIT, Delhi in 1984. He has about thirty years of research and teaching experience in
Law matters, Accounting, Internal Audit and Statutory Audit. He has over two decades of India and abroad. He has supervised five Ph.D thesis, several M.Tech. and B.Tech projects.
experience of Statutory Audit of Government Departments, Public Sector Undertakings, He has published a number of books and more than eighty papers in leading journals and
Banks, etc. peer reviewed conferences. His areas of specialization include earthquake engineering,
He is Chairman of Audit Committee of the Company. He is holding 5000 equity shares of health monitoring of structures and e-learning. He has held visiting research and teaching
`10/- each in Vayu Agro Farms Pvt. Ltd., amounting to 50% of its issued share capital. appointments at MIT (USA), EPFL (Switzerland) and Nanyang Technological University
(Singapore). He has been Professor-in-charge Planning from 2004 to 2007, Dean of
CA Parmod Bindal is not disqualified from being appointed as a Director in terms of Alumni Affairs and International Programmes from 2007 to 2011, Dean, Infrastructure
Section 164 of the Act and has given his consent to act as a Director. The Company has from 2012 to 2014 in IIT, Delhi and Ex Member of Board of Governers of IIT, Delhi.
received a declaration from CA Parmod Bindal that he meets with the criteria of Prof. Ashok Gupta is not disqualified from being appointed as a Director in terms of
independence as prescribed under sub- section 6 of Section 149 of the Act. Section 164 of the Act and has given his consent to act as a Director. The Company has
Save and except CA Parmod Bindal and his relatives, to the extent of their shareholding received a declaration from Prof. Ashok Gupta that he meets with the criteria of
interest, if any, in the Company, none of the other Directors/ Key Managerial Personnel of independence as prescribed under sub-section 6 of Section 149 of the Act.
the Company/their relatives are, in any way, concerned or interested financially or Save and except Prof. Ashok Gupta and his relatives, to the extent of their shareholding
otherwise, in the Resolution set out at Item No.6 of the Notice. interest, if any, in the Company, none of the other Directors/ Key Managerial Personnel of
Keeping in view the vast expertise and knowledge of CA Parmod Bindal, the Board the Company/their relatives are, in any way, concerned or interested financially or
considers it desirable that the Company should continue to avail itself of his services as otherwise, in the Resolution set out at Item No.7 of the Notice.

196
Keeping in view the vast expertise and knowledge of Prof. Ashok Gupta, the Board Board considers it desirable that the Company should continue to avail itself of his services
considers it desirable that the Company should continue to avail itself of his services as as a Director and recommends this Resolution for approval of the shareholders.
a Director and recommends this Resolution for approval of the shareholders, as a Special Item No.10
Resolution.
Pursuant to the Government of India, Ministry of Steel Order No.6/1/2018-BLA dated
Item No.8 27th March, 2019, Shri Vivek Gupta (DIN:08370793) was appointed as an Additional
Mrs. Anshu Vaish(DIN:02924346), on nomination by the President of India vide Director of the Company with effect from 27th March, 2019 subject to his re-appointment
Government's Order F.No. 6(13)/2015-BLA dated 13th November, 2015, was appointed by the shareholders in the Annual General Meeting. His tenure as Director is for a period
as Non-Official Independent Director of the Company for a period of three years with of five years from 27th March, 2019 or till the date of his superannuation (31.07.2020) or
effect from 18th November, 2015. Government of India, Ministry of Steel vide Order F.No. until further orders, whichever is earliest. He is liable to retire by rotation in terms of
1(10)/2015-BLA(Vol-III-Pt.) dated 19th November, 2018 has re-appointed Mrs. Anshu provision of the Companies Act, 2013. In terms of Section 161 of the Companies Act,
Vaish as an Independent Director of the Company with effect from 18th November, 2018 2013 and Articles of Association of the Company, he would hold office upto the date of
for a period of one year from the date of completion of her existing tenure or till further the ensuing Annual General Meeting. The notice under Section 160 of the said Act has
orders, whichever is earlier. Accordingly, the Board of Directors of the Company has re- been received proposing the name of Shri Vivek Gupta as a candidate for the office of
appointed Mrs. Anshu Vaish as an Additional Director of the Company w.e.f. 18th November, Director of the Company.
2018. Her tenure as Non-Official Independent Director is for a period of one year with Shri Vivek Gupta is a Civil Engineer, having over 38 years of experience of working in the
effect from 18th November, 2018 or until further orders, whichever is earlier. In terms of Company in different capacities at both Plant as well as at Corporate Office of the Company.
the provisions of Section 161(1) of the Companies Act, 2013, Having joined IISCO Steel Plant initially as Junior Manager, he rose to the level of General
Mrs. Anshu Vaish would hold office upto the date of the ensuing Annual General Meeting. Manager(Projects), before joining Corporate Office as Executive Director(Projects).
The Company has received a notice in writing under Section 160 of the Act proposing Thereafter, he was posted as incharge of Visvesvaraya Iron & Steel Plant. Prior to joining
the candidature of Mrs. Anshu Vaish for the office of Director of the Company. as Director(Raw Materials & Logistics) he was posted as Executive Director(Projects &
Mrs. Anshu Vaish, aged 67 years, is a former Indian Administrative Service (IAS) officer Operations) at Raw Materials Division(RMD) of the Company, overseeing the projects
of 1975 batch of Madhya Pradesh cadre and retired as Secretary, Department of School and operational activities of RMD.
Education & Literacy, Ministry of Human Resource Development, Government of India. Shri Vivek Gupta is not disqualified from being appointed as a Director in terms of Section
She is a Post Graduate in History. During her over 37 years of experience as a public 164 of the Act and has given his consent to act as a Director.
servant, she has worked in several key sectors like Commerce & Industries, Tourism &
Save and except Shri Vivek Gupta and his relatives, to the extent of their shareholding
Culture, Women & Child Development, Rural Industries, Public Health & Family Welfare,
interest, if any, in the Company, none of the other Directors/ Key Managerial Personnel of
Social Welfare and Education in the State Government of Madhya Pradesh. She also has the Company/their relatives are, in any way, concerned or interested financially or
the experience of working in the Government of India in various capacities in the otherwise, in the Resolution set out at Item No.10 of the Notice.
Department of Culture in the Ministry of Human Resource Development, Director General
of Archaeological Survey of India and finally as Secretary to the Government of India, The Board considers it desirable that the Company should continue to avail itself of his
Ministry of Human Resource Development, Department of School Education & Literacy. services as a Director and recommends this Resolution for approval of the shareholders.
She is Chairman of the Nomination & Remuneration Committee of the Company. She is Item No.11
also Member of Governing Body of various Non-Government Organization viz. Ranga Sri Your Company is continuing with massive Modernisation & Expansion programme of its
Little Ballet Troupe (LBT), Bhopal, PRADAN, New Delhi, KATHA, New Delhi, Centre for Plants and also for augmentation of Raw Material supplies from its own mines. The
Equity Studies, New Delhi and Swami Sivananda Memorial Institute, New Delhi. She is expansion programme is being funded through a mix of debt and equity. The Company
also a Member of Institute Body of AIIMS, Bhopal. has already spent about `69,623 crore on its expansion programme till 30th June, 2019.
Mrs. Anshu Vaish is not disqualified from being appointed as a Director in terms of In order to part finance the expansion programme as well as to convert short loans into
Section 164 of the Act and has given her consent to act as a Director. The Company has medium and long term loans, your Company plans to borrow about `5,000 crore during
received a declaration from Mrs. Anshu Vaish that she meets with the criteria of the period of one year from the date of this Annual General Meeting or such other period
independence as prescribed under sub- section 6 of Section 149 of the Act. as may be permitted under the Companies Act, 2013 and other applicable laws.
Save and except Mrs. Anshu Vaish and her relatives, to the extent of their shareholding On analysis of the various options of raising funds through borrowing in Domestic and
interest, if any, in the Company, none of the other Directors/ Key Managerial Personnel of International Market, it has been decided by the Board of Directors to raise the funds
the Company/their relatives are, in any way, concerned or interested financially or through private placement of Secured Non-convertible Debentures / Bonds to the extent
otherwise, in the Resolution set out at Item No.8 of the Notice. of `5,000 crore during the year.
The provisions of Section 42 of the Companies Act, 2013, read with Rule 14 of the
Keeping in view the vast expertise and knowledge of Mrs. Anshu Vaish, the Board considers
Companies (Prospectus and Allotment of Securities) Rules, 2014, mandate the Company
it desirable that the Company should continue to avail itself of her services as a Director
to seek approval of shareholders by means of a Special Resolution for raising funds
and recommends this Resolution for approval of the shareholders, as a Special Resolution.
through private placement of non-convertible debentures/bonds. Accordingly, approval
Item No.9 of Shareholders for the resolution as set out in Item No.11 of the Notice is being sought
Pursuant to the Government of India, Ministry of Steel Order F.No. 1(10)/2015-BLA(Vol- to borrow funds by offer or invitation to subscribe to Secured Non-convertible Debentures/
III-Pt.) dated 14th December, 2018, Shri Krishan Kumar Gupta (DIN:03476812) was Bonds for an amount upto `5,000 crore. This resolution would be valid for period of one
appointed as an Additional Director of the Company with effect from 21st December, year from the date of this AGM. The terms and conditions of Secured Non-convertible
2018. His tenure as Non-Official Independent Director is for a period of three years with Debentures / Bonds shall be decided by the Board of Directors / Committee thereof or
effect from 21st December, 2018 or until further orders, whichever is earlier. In terms of any one or more Directors, as may be required.
the provisions of Section 161(1) of the Companies Act, 2013(the Act), Shri Krishan The borrowings of the Company are in general required to be secured by mortgages /
Kumar Gupta would hold office upto the date of the ensuing Annual General Meeting. The charges / hypothecation or encumbrances on all or any of the movable or immovable
Company has received a notice in writing under Section 160 of the Act proposing the properties of the Company. Consent of the members is being sought in terms of Section
candidature of Shri Krishan Kumar Gupta for the office of Director of the Company. 180(1)(a) of the Companies Act, 2013 to enable the Company to create charge,
Shri Krishan Kumar Gupta, aged 63 years, has vast experience in the field of logistics hypothecate, mortgage, pledge on any movable, immovable properties of the Company
and marketing, in Oil and Gas Industry. He has served as Director (Marketing) on the both present and future and on the whole or substantially the whole of the undertaking or
Board of Bharat Petroleum Corporation Limited (BPCL) from March, 2011 to February, undertakings of the Company and wherever situated and to authorize the Board to take
2016, having earlier occupied the positions of Executive Director I/c (Retail), Executive necessary action in this regard.
Director (Lubes) and General Manager (Logistics). He had also been on the Board of The Board recommends the Resolution for your approval as Special Resolution.
other companies viz. Indrapastha Gas Limited, Numaligarh Refinery Limited, Sabarmati None of the Directors and /or Key Managerial Personnel of the Company or their relative(s)
Gas Limited, Matrix Bharat Pte Ltd., Bharat Stars Services Pvt. Ltd., Bharat Stars Services is / are concerned or interested in the Resolution set out at Item No.11 of the Notice.
(Delhi) Pvt. Ltd. Shri Gupta holds the qualification of B.Sc. Engineering (Mechanical) and
M.Sc. Engineering Diploma in Rotodynamics from Punjab Engineering College, Punjab Item No.12
University. The Board of Directors of the Company, on the recommendation of the Audit Committee
Shri Krishan Kumar Gupta is not disqualified from being appointed as a Director in terms has considered and approved the appointment of M/s. Shome & Banerjee, Kolkata (for
of Section 164 of the Act and has given his consent to act as a Director. The Company Bokaro Steel Plant, Durgapur Steel Plant and IISCO Steel Plant), M/s. R.J. Goel & Co.,
has received a declaration from Shri Krishan Kumar Gupta that he meets with the criteria New Delhi(for Bhilai Steel Plant and Rourkela Steel Plant) and M/s. R.M. Bansal & Co.,
of independence as prescribed under sub- section 6 of Section 149 of the Act. Kanpur (for Alloy Steels Plant, Salem Steel Plant and Visvesvaraya Iron and Steel Plant)
as the Cost Auditors of the Company for the Financial Year 2019-20 at a remuneration of
Save and except Shri Krishan Kumar Gupta and his relatives, to the extent of their `11,70,000/- plus taxes as applicable and reimbursement of Daily Allowance, Travelling
shareholding interest, if any, in the Company, none of the other Directors/ Key Managerial Expenses and out of pocket expenses. In addition, M/s. R.M. Bansal & Co., Kanpur have
Personnel of the Company/their relatives are, in any way, concerned or interested financially been designated as Lead Cost Auditor for XBRL conversion and filing of Consolidated
or otherwise, in the Resolution set out at Item No.9 of the Notice. Cost Audit Report of the Company at an additional fee of `42,000/- plus taxes as
Keeping in view the vast expertise and knowledge of Shri Krishan Kumar Gupta, the applicable.

197
Pursuant to Section 148(3) of the Companies Act, 2013 read with Rule 14 of the By order of the Board of Directors
Companies (Audit and Auditors) Rules, 2014, the remuneration, as approved by the
Board of Directors of the Company on the recommendation of the Audit Committee, is
required to be subsequently ratified by the Members of the Company. Accordingly, the (M.B. Balakrishnan)
Resolution for ratification of the fee of the Cost Auditors as set out at Item No.12 of the Company Secretary
Notice is submitted for approval of the Shareholders.
Place: New Delhi
The Board recommends the resolution for your approval. Dated: 31st July, 2019
None of the Directors and/or Key Managerial Personnel of the Company and / or their Registered Office:
relatives is concerned or interested in the resolution. Ispat Bhawan, Lodi Road, New Delhi-110003.
CIN: L27109DL1973GOI006454

Details of Directors seeking appointment/re-appointment in Annual General Meeting furnished in terms of SEBI Regulations:
Name of the Ms. Soma Mondal Shri Atul Srivastava CA Parmod Bindal Prof. Ashok Gupta Mrs. Anshu Vaish Shri Krishan Kumar Shri Vivek Gupta
Director Gupta
DIN 06845389 07957068 06389570 07342950 02924346 03476812 08370793
Date of Birth 21st April, 1963 6th January, 1962 1st October, 1962 6th June, 1957 4th September, 1952 1st March, 1956 6th July, 1960
Date of 1st March, 2017 12th March, 2018 18th November, 2018 18th November, 2018 18th November, 2018 21st December, 2018 27th March, 2019
Appointment
Expertise in Marketing; Human Resource Direct and Indirect Earthquake Administration; Marketing and Projects;
Specific Management; Taxes; engineering; Commerce; Logistics; Administration;
functional areas HR Policies; Company Law Health monitoring Industry;
matters; Accounting; of structures and Education;
Internal Audit and E-learning;
Statutory Audit;
Qualifications B.Sc. (Engineering) B.Tech.(Mechanical), Chartered B.Tech; Ph.D M.A.(History); BSc(Engg.-Mech.); BE(Civil Engg.);
PGDM Accountant M.A. (Economics) MSc(Engg.) Diploma Diploma in
(Specialisation in in Rotodynamics Management;
HR) Diploma in Project
Management;
Diploma in
Construction
Management;
List of NIL NIL NIL NIL NIL IRM Energy Pvt. Ltd. Bhilai Jaypee
Companies in Cement Limited
which outside
Directorship is
held.
Chairman/ Member: Member: Chairman: Chairman: Chairman: Member: Member:
Member of the Operational Issues Stakeholders Audit Committee Health, Safety & Nomination & Projects Committee; Operational Issues
Committees of Committee; Relationship Member: Environment Remuneration Health, Safety & Committee; Health,
the Board of the Committee; CSR Projects Committee; Committee; Committee; Environment Safety &
Companies on Committee; Health, Strategic Issues & Operational Issues Member: Committee; Environment
which he is a Safety & Joint Ventures Committee; Audit Committee; CSR Committee; Committee;
Director. Environment Committee; Member: Health, Safety & Audit Committee
Committee; Operational Issues Audit Committee; Environment (M/s. IRM Energy
Committee; CSR Committee; Committee; Strategic Pvt. Ltd.);
Nomination & Issues & Joint Ventures
Remuneration Committee; CSR
Committee; Committee;
No. of Shares NIL 200 NIL NIL NIL NIL NIL
held in SAIL

198
 STEEL AUTHORITY OF INDIA LIMITED
CIN: L27109DL1973GOI006454
Registered Office: Ispat Bhawan, Lodi Road, New Delhi - 110 003
Tel: +91 11 24367481, Fax: +91 11 24367015, E-mail: [email protected], Website: www.sail.co.in

ATTENDANCE SLIP
47th Annual General Meeting to be held on Friday, 30th August, 2019 at 10.30 hours

NAME OF THE ATTENDING MEMBER (IN BLOCK LETTERS)

*Folio No.
DP ID No. / Client ID No.
No. of Shares Held
NAME OF PROXY (IN BLOCK LETTERS, TO BE FILLED IN
IF THE PROXY ATTENDS INSTEAD OF THE MEMBER)

I, hereby record my presence at the 47th Annual General Meeting of the Company to be held on Friday, 30th August, 2019 at NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001.

*Applicable in case of Shares held in Physical Form

Member's/Proxy's Signature ____________________________________________

NOTE:
1. The attendance slip should be signed as per the specimen signature registered with the R&TA/Depository Participant (DP). Such duly completed and signed Attendance Slip should
be handed over at the registration counter(s) at the venue against which R&TA will issue Entry Slip.
2. Entry to the hall will be strictly on the basis of Entry Slip as provided by R&TA.
3. Members in person/Proxy holders may please carry photo-ID card for identification/verification purposes.
4. Shareholder(s) present in person or through registered proxy shall only be entertained.
5. Briefcase, mobile phone, bag, eatables, helmets and other belongings will not be allowed to be taken inside the venue of the meeting for security purposes and shareholder(s)/proxy
holder(s) will be required to take care of their belonging(s).
6. No gifts will be distributed at the Annual General Meeting.
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

STEEL AUTHORITY OF INDIA LIMITED

CIN: L27109DL1973GOI006454
Registered Office: Ispat Bhawan, Lodi Road, New Delhi - 110 003
Tel: +91 11 24367481, Fax: +91 11 24367015, E-mail: [email protected], Website: www.sail.co.in

PROXY FORM
[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]
Name of the Member(s)
Registered address
Folio No./DP ID-Client ID
Email ID
I/We, being the member(s) of ……..........................................................................................................................….. shares, hereby appoint:

1.Name: ........................................................................................................ Address: ..............................................................................................................................................

E-mail Id: .................................................................................................................................................................. Signature: .............................................................. , or failing him
2.Name: .......................................................................................................... Address: .................................................................................................................................................
E-mail Id: ................................................................................................................................................................. Signature: ............................................................. , or failing him
3.Name: .............................................................................................................. Address: ........................................................................................................................................................
E-mail Id: ...................................................................................................................................................................Signature: ...................................................................................
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 47th Annual General Meeting of the Company to be held on 30th August, 2019 at 1030 hours at NDMC
Indoor Stadium, Talkatora Garden, New Delhi-110001 and at any adjournment thereof in respect of such resolutions as are indicated below:
S.No. Resolutions
Ordinary Business
1. To receive, consider and adopt the (i) the Audited Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2019 together with Reports of the
Board of Directors and Auditors thereon. (ii) the Audited Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2019 and the Report of the
Auditors thereon.
2. To appoint a director in place of Ms. Soma Mondal (DIN:06845389), who retires by rotation at this Annual General Meeting and is eligible for re-appointment.
3. To appoint a director in place of Shri Atul Srivastava (DIN:07957068), who retires by rotation at this Annual General Meeting and is eligible for re-appointment.
4. To fix the remuneration of the Auditors of the Company appointed by the Comptroller & Auditor General of India for the Financial Year 2019-20.
5. To declare Final Dividend for the Financial Year 2018-19 @ ` 0.50 per Equity Share of face value of ` 10/- each.
Special Business Please
6. To re-appoint CA Parmod Bindal (DIN: 06389570) as an Independent Director of the Company. affix
7. To re-appoint Prof. Ashok Gupta (DIN:07342950) as an Independent Director of the Company.
`1
Revenue
8. To re-appoint Smt. Anshu Vaish (DIN:02924346) as an Independent Director of the Company.
Stamp
9. To appoint Shri Krishan Kumar Gupta (DIN:03476812) as an Independent Director of the Company.
10. To appoint Shri Vivek Gupta (DIN:08370793) as a Whole-time Director of the Company.
11. To obtain consent for Borrowings upto ` 5,000/- crore through private placement of Non-Convertible Debentures/Bonds and Creation of Charge on the assets of the Company.
12. To ratify Remuneration of Cost Auditors of the Company for the Financial Year 2019-20.

Signed this ………...............................................day of ………...................................................……........2019

Signature of Member(s).........................................................................................................................................
Signature of proxy holder(s) ....................................................................................................................................

NOTE:
This Proxy Form in order to be effective should be duly completed and deposited at the Registered Office of the Company at Ispat Bhawan, Lodi Road, New Delhi-110003 not less
than 48 hours before the commencement of the Annual General Meeting. 199
 FORMAT FOR FURNISHING THE BANK DETAILS, PAN, EMAIL ID, ETC.

To
MCS Share Transfer Agent Limited
Unit : Steel Authority of India Limited
F-65, Okhla Industrial Area, phase-I,
New Delhi - 110020

Dear Sir,

I/We, give my/our consent to update the following details in your records to effect payments of dividend or sending other communications by electronic means in
compliance with the circular(s) issued by SEBI for equity shares of Steel Authority of India Limited.

FOLIO NO. :__________________________________________________________________________________________________________________

NAME OF THE FIRST / SOLE HOLDER :______________________________________________________________________________________________
BANK'S NAME :______________________________________________________________________________________________________________
BRANCH'S NAME & ADDRESS :___________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________________
ACCOUNT NO. :______________________________________________ACCOUNT TYPE (SB / CURRENT) :_______________________________________
IFSC CODE : _______________________________________________ MICR CODE :______________________________________________________
EMAIL ID : ________________________________________________ PHONE NO. :_______________________________________________________

PARTICULARS NAME OF SHAREHOLDER(S) PAN

FIRST / SOLE SHAREHOLDER

1ST JOINT SHAREHOLDER

2ND JOINT SHAREHOLDER

Signature of 1st Shareholder Signature of 1st Joint Shareholder Signature of 2nd Joint Shareholder

Date :______________________
Place:______________________

Encl : Original cancelled cheque leaflet or attested copy of bank pass book showing name of account holder and self- attested copy of PAN Card(s).

200