MIRA INFORM REPORT

3decades

MIRA INFORM REPORT

Report No. :	493740
Report Date :	24.02.2018

IDENTIFICATION DETAILS

Name :	STEEL AUTHORITY OF INDIA LIMITED

Registered Office :	Ispat Bhawan, Lodhi Road, New Delhi – 110003
Tel. No.:	91-11-24367481

Country :	India

Financials (as on) :	31.03.2017

Date of Incorporation :	24.01.1973

Com. Reg. No.:	55-006454

Capital Investment / Paid-up Capital :	INR 41305.300 Million

CIN No.: [Company Identification No.]	L27109DL1973GOI006454

IEC No.: [Import-Export Code No.]	0599009331

TIN / CST No.:	07890025639

GSTN : [Goods & Service Tax Registration No.]	07AAACS7062F1ZG

TAN No.: [Tax Deduction & Collection Account No.]	DELS06268D / DELS20338D / DELS20694C / DELS20776A / DELS20872F / DELS20873G / DELS21126A / DELS21127B / DELS22073C / DELS22349F / DELS22350G / DELS22351A / DELS23183G / DELS23314E / DELS23327D / DELS23718C / DELS21126A / DELS27448B / DELS62192E / DELS05037E

PAN No.: [Permanent Account No.]	AAACS7062F

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturer of Steel and Steel Products. [Registered Activity]

No. of Employees :	82964 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow but correct

Litigation :	Exist

Comments :	Steel Authority of India Limited is a Government of India Company incorporated in the year 1973. It is one of the largest state-owned steel making company based in New Delhi, India and one of the top steel makers in world, having good track record. Available financial indicates sound financial risk profile marked by strong networth base along with comfortable liquidity position of the company. Fundamentals of the company are healthy. Further, the rating also takes into consideration company’s established position as one of the largest integrated steel producers in India with captive iron ore mines, geographical diversity along with strong marketing network. However, the rating strength is partially offset by continuous losses incurring by the company and prevailing slowdown in steel industry. Trade relations are reported as trustworthy. Business is active. Payments are reported as slow but correct. In view of the aforesaid, the company can be considered business dealings at usual trade terms and condition.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Rating= AA-
Rating Explanation	High degree of safety and very low credit risk.
Date	05.10.2017

Rating Agency Name	CARE
Rating	Short Term Rating= A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	05.10.2017

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 24.02.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED

Management Non-Cooperative (91-11-24367481)

LOCATIONS

Registered/ Corporate Office :	Ispat Bhawan, Lodhi Road, New Delhi – 110003, India
Tel. No.:	91-11-24367481 (14 lines) / 86
Fax No.:	91-11-24367015
E-Mail :	secy.sail@sailex.com mcjsail@gmail.com drgeeta.sharma@sailex.com
Website :	http://www.sail.co.in

Factories :	Integrated Steel Plants Ø Bhilai Steel Plant, Chhattisgarh – 490001, India Ø Durgapur Steel Plant – 713203, West Bengal, India Ø Rourkela Steel Plant – 769011, Orissa, India Ø Bokaro Steel Plant – 827001, Jharkhand, India Ø P. O. Hinoo, Ranchi – 834002, Bihar, India Ø IISCO Steel Plant, Burnpur, District: Bardhaman-713325, West Bengal, India Special Steel Plants Ø Alloy Steel Plants, Durgapur – 713208, West Bengal, India Ø Salem Steel Plant – 636013, Tamilnadu, India Ø Visvesvaraya Iron and Steel Plant, Bhadravati, Karnataka, India

Sail Refractory Unit :	Bokaro Steel City – Bokaro – 827004, Jharkhand, India

Raw Materials Division :	6^th Floor, 10, Camac Street, Industry House, Kolkata – 700017, West Bengal, India

Branch Sales Offices :	NORTHERN REGION: Ø SCOPE Minar, Core-1, 18^th Floor, Laxmi Nagar District Centre, Delhi – 110092, India Ø GDA Commercial Complex, 1^st Floor, Navyug Market, Ghaziabad – 201001, Uttar Pradesh, India Ø SCO- 27, Sector-26, Madhya Marg, Chandigarh – 160019, India Ø 2^nd Floor, Dhyan Singh Complex, Near Bus Stand, Ludhiana – 141001, Punjab, India Ø Opposite UCI, G.T. Road, Suranussi, Jalandhar – 144027, Punjab, India Ø OB-24, Rail Head, Commercial Complex, Near Panama Chowk, Jammu – 180006, Jammu and Kashmir, India Ø Jay Building, GT Road, Mandi Gobindgarh, District: Fatehgarh Sahib– 147301, Punjab, India EASTERN REGION: Ø IISCO House, 5^th Floor, 50 Jawaharlal Nehru Road, Kolkata – 700071, West Bengal, India Ø Surya Sen Sarani, Durgapur – 713208, West Bengal, India Ø CMO Complex, Near Admn. Building, MG Road, Bokaro Steel City, Bokaro – 827001, Jharkhand, India Ø 27/1 Bidyut Marg, Unit‐4, Shastri Nagar, Bhubaneswar – 751001, Odisha, India Ø Paltan Bazar, 1^st Floor, HPB Road, Near Nandan Hotel, Guwahati – 781008, Assam, India Ø F‐10, Sector‐II, Rourkela – 769006, Odisha, India Ø Lav Kush Tower, 5^th Floor, Exhibition Road, Patna – 800001, Bihar, India WESTERN REGION: Ø Swastik Chamber, 1^st Floor, Sion-Trombay Road, Chembur, Mumbai – 400071, Maharashtra, India Ø Bandhan, GHB Complex, Near Ankur Bus Stand, Narangpura, Ahmedabad – 380013, Gujarat, India Ø Shree Mohini Complex, (4^th Floor), 345 SV Patel, Marg, Nagpur – 440001, Maharashtra, India Ø Near Dakania Talav Railway Station, Road No. 1, Indraprastha Industrial Area, Kota – 324005, Rajasthan, India Ø Landmark, 4^th Floor, 'C' Scheme, S-16A Mahavir Marg, Opposite Gujarati Samaj, Jaipur – 302001, Rajasthan, India Ø 500 Marhatal, Jabalpur – 482002, Madhya Pradesh, India Ø Arcade Silver 56, 3^rd Floor, 1 New Palasia, Indore – 452001, Madhya Pradesh, India Ø Near Equipment Chowk, Road No. 1, Sector-I, Bhilai – 490001, Chhattisgarh, India Ø Telephone Exchange, Building, 2^nd Floor, Baner Road, Baner, Pune – 411045, Maharashtra, India Ø Resham Mill Road, Birla Nagar, Gwalior – 474004, Madhya Pradesh, India Ø Marble Arch, 8^th Floor, Race Course Circle, Vadodara – 390007, Gujarat, India Ø Veer Savarkar Udyog Bhavan, II Floor (Near Balagandharva Rang Mandir), Congress House Road, Sivaji Nagar, Pune – 411005, Maharashtra, India SOUTHERN REGION: Ø Ispat Bhavan, 5 Kodambakkam High Road, Nungambakkam, Chennai – 600034, Tamilnadu, India Ø VISL House (3^rd and 4^th Floors), 8 JC Road, Bangalore – 560002, Karnataka, India Ø FF2, GVR Towers, 1^st Floor, Bharti Nagar, Ring Road, Vijayawada – 520008, Andhra Pradesh, India Ø Esspee Complex, 52, Heber Road, Cantonment, Tiruchirapalli – 620001, Tamilnadu, India Ø Tara Mandal, 9^th Floor, 5-9-13 Saifabad, Hyderabad – 500004, Telangana, India Ø GCDA Commercial Complex, 3^rd Floor, Shanmugam Road, Marine Drive, Kochi – 682031, Kerala, India Ø Cheran Towers, 2^nd Floor, 81 Govt. Arts College Road, Coimbatore – 641018, Tamilnadu, India Ø Plot No. 39, Opposite R.K. Beach, Visakhapatnam – 530003, Andhra Pradesh, India

Regional Office :	The Metro Politian, 8^th and 9^th Floor, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

CMO Regional and Zonal Offices :	Northern Region Ø New Delhi North-Western Region Ø Chandigarh Eastern Region Ø Kolkata Western Region Ø Mumbai Central Region Ø Indore Southern Region Ø Chennai North Eastern Zone Ø Guwahati

DIRECTORS

AS ON 11.08.2017

Name :	Mr. Prakash Kumar Singh
Designation :	Chairman and Managing Director
Address :	A-1/1 Aurobinda Avenue, Durgapur – 713204, West Bengal, India
Date of Appointment :	10.12.2015
DIN No.:	06398868

FUNCTIONAL DIRECTORS

Name :	Mr. Anil Kumar Chaudhary
Designation :	Director (Finance)
Address :	A-341, K.P. Thakkar Block Asian Games Village, New Delhi – 110049, India
Date of Appointment :	01.09.2011
DIN No.:	03256818

Name :	Mr. Kalyan Maity
Designation :	Director (Raw Materials and Logistics)
Address :	A-343 Asian Games Village Complex, New Delhi – 110049, India
Date of Appointment :	01.03.2013
DIN No.:	06530613

Name :	Mr. Ganesh Vishwakarma
Designation :	Additional Director (Projects and Business Planning and Additional Charge of Director [Personnel])
Address :	10-3-311/A, NMDC Limited Castle Hills, Masab Tank, Asifnagar, Hum Ayunnagar, Hyderabad – 500028, Telangana, India
Date of Appointment :	31.12.2015
DIN No.:	07389419

Name :	Mr. Raman
Designation :	Additional Director (Technical)
Address :	C-34/1, ED'S Bungalow, Salem – 636030, Tamilnadu, India
Date of Appointment :	01.07.2016
DIN No.:	06840232

Name :	Ms. Soma Mondal
Designation :	Additional Director (Commercial)
Address :	Qr. No-D-187, Nalco Nagar, Phase-1, CS Pur, Bhubaneswar – 751023, Orrisa, India
Date of Appointment :	01.03.2017
DIN No.:	06845389

GOVERNMENT DIRECTORS

Name :	Mr. Saraswati Prasad
Designation :	Nominee Director (Additional Secretary and Financial Adviser Ministry of Steel, Government of India)
Address :	D-9, 9^th Floor, Tower 9, New Moti Bagh, Delhi – 110023, India
Date of Appointment :	08.02.2017
DIN No.:	07729788

Name :	Mr. Sunil Barthwal
Designation :	Nominee Director (Joint Secretary, Ministry of Steel, Government of India)
Address :	D-I/84, Satya Marg Chanakya Puri, New Delhi – 110021, India
Date of Appointment :	22.12.2014
DIN No.:	07066759

INDEPENDENT DIRECTORS

Name :	Mr. Prasanna Kumar Dash
Designation :	Independent Director
Address :	B - 7 Char Imli Bhopal – 462016, Madhya Pradesh, India
Date of Appointment :	18.11.2015
DIN No.:	01578400

Name :	Mr. Ashok Gupta
Designation :	Independent Director
Address :	20 Vikaramshila Apartments, Iit Hauz Khas, New Delhi – 110016, India
Date of Appointment :	18.11.2015
DIN No.:	07342950

Name :	Mr. Parmod Bindal
Designation :	Independent Director
Address :	House No. 1728/1, Sector 44-C, Chandigarh – 160044, India
Date of Appointment :	18.11.2015
DIN No.:	06389570

Name :	Mrs. Anshu Vaish
Designation :	Independent Director
Address :	C-I/27, Bapa Nagar, New Delhi – 110003, India
Date of Appointment :	18.11.2015
DIN No.:	02924346

Name :	Dr. Samar Singh
Designation :	Additional Director
Address :	W.S.-2/15 , Harmu Housing Colony, Ranchi – 834002, Haryana, India
Date of Appointment :	04.02.2017
DIN No.:	07725642

Name :	Mr. Nilanjan Sanyal
Designation :	Additional Director
Address :	Sr Qtr B 2/3, Ms Flats, Sector 13, R K Puram, New Delhi – 110066, India
Date of Appointment :	04.02.2017
DIN No.:	03026624

Name :	Urvilla Khati
Designation :	Nominee Director
Address :	W/O Anand Singh Khati, 246/7-B, Panchkuian Road, Railway Officers Enclave, G.P.O., Central Delhi, New Delhi – 110001, India
Date of Appointment :	11.10.2017
DIN No.:	07011413

Name :	Mr. Kartar Singh Chauhan
Designation :	Additional Director
Address :	E-9, Antriksh Greens, Plot No. F-7, Sector-50, Noida – 201301, Uttar Pradesh, India
Date of Appointment :	22.09.2017
DIN No.:	07811175

Name :	Mr. Narendra Kumar Taneja
Designation :	Additional Director
Address :	606/3, Mangal Pandey Nagar, Meerut City, Meerut – 250002, Uttar Pradesh, India
Date of Appointment :	22.09.2017
DIN No.:	07938062

KEY EXECUTIVES

CHIEF EXECUTIVE OFFICERS (PERMANENT INVITEES)
Rourkela Steel Plant :	Mr. Ashwini Kumar

Durgapur Steel Plant :	Mr. A.K. Rath

IISCO Steel Plant :	Mr. R.K. Rathi

Bhilai Steel Plant :	Mr. M. Ravi

Bokaro Steel Plant :	Mr. Anutosh Maitra

Name:	Mr. Mukesh Chand Jain
Designation :	ED (F&A) and Secretary
Address :	F-703, Munirka Apartments, Sector-9, Plot-11, Dwarka, New Delhi – 110075, India
Date of Appointment :	01.08.2013
PAN No.:	ACWPJ4777H

MAJOR SHAREHOLDERS

AS ON December, 2017

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Promoter & Promoter Group	3097767449	75.00
(B) Public	1032640205	25.00
(C) Non Promoter-Non Public	117635	0.00
Grand Total	4130525289	100.00

Statement showing shareholding pattern of the Promoter and Promoter Group

Category of Shareholder	No. of Shares	Percentage of Holding
Central Government/ State Government(s)	3097767449	75.00
President of India	3097767449	75.00
Sub Total A1	3097767449	75.00
A=A1+A2	3097767449	75.00

Statement showing shareholding pattern of the Public shareholder

Category of Shareholder	No. of Shares	Percentage of Holding
Mutual Funds/	52590279	1.27
Foreign Portfolio Investors	159314131	3.86
Financial Institutions/ Banks	166158731	4.02
LIC Of India Market Plus 1 Growth Fund	51099546	1.24
Insurance Companies	469925760	11.38
Life Insurance Corporate of India	441874667	10.70
Sub Total B1	847988901	20.53
Individual share capital upto INR 0.200 million	110429688	2.67
Individual share capital in excess of INR 0.200 million	22220104	0.54
NBFCs registered with RBI	8100	0.00
Any Other (specify)	51993412	1.26
Sub Total B3	184651304	4.47
B=B1+B2+B3	1032640205	25.00

Statement showing shareholding pattern of the Non Promoter- Non Public shareholder

Category of Shareholder	No. of Shares	Percentage of Holding
Custodian/DR Holder	117635	0.00
Sub Total C1	117635	0.00
C= C1+C2	117635	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel and Steel Products. [Registered Activity]

Products / Services :

Product Description	NIC Code
Steel and Steel products	330

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Experience :	--
Maximum Limit Dealt :	--
Remark :	--

Customers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Experience :	--
Maximum Limit Dealt :	--
Remark :	--

No. of Employees :

82964 (Approximately)

Bankers :

· Axis Bank Limited

· Bank of India

· Bank of Baroda

· Bank of Tokyo-Mitsubishi UFJ Limited

· Barclays Bank PLC

· Canara Bank

· Corporation Bank

· Deutsche Bank

· HDFC Bank Limited

· ICICI Bank Limited

· IDBI Bank Limited

· IndusInd Bank Limited

· Jammu and Kashmir Bank Limited

· Kotak Mahindra Bank Limited

· Mizuho Bank

· Punjab National Bank

· State Bank of Hyderabad

· State Bank of India

· Sumitomo Mitsui Banking Corporation

· United Overseas Bank

· Vijaya Bank

· Yes Bank Limited

Facilities :

SECURED LOANS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Redeemable Non-Convertible Bonds	143640.000	138780.000
Term Loans - From banks
Rupee loan	25000.000	0.000

SHORT TERM BORROWINGS
Repayable on demand
From banks	13020.900	22560.400
Other loans and advances
From banks	2500.000	0.000

Total	184160.900	161340.400

Statutory Auditors :
Name :	Singhi and Company Chartered Accountants
Address :	161, Sarat Bose Road, Kolkata – 700026, West Bengal, India

Name :	Chatterjee and Company Chartered Accountants
Address :	153, Rash Behari Avenue, 3^rd Floor, Kolkata – 700029, West Bengal, India

Name :	V.K. Dhingra and Company Chartered Accountants
Address :	1-E/15, Jhandewalan Extension, New Delhi – 110055, India

Name :	A.K. Sabat and Company Chartered Accountants
Address :	A-348, Sahid Nagar, Bhubaneswar – 751007, Odisha, India

Cost Auditors :
Name :	R.J. Goel and Company Cost Accountants

Name :	Sanjay Gupta and Associates Cost Accountants

Name :	Shome and Banerjee Cost Accountants

Secretarial Auditor :
Name :	Agarwal S. and Associates Company Secretaries

Memberships :	Not Available

Collaborators :	Not Available

Subsidiary Companies :	· SAIL-Jagdishpur Power Plant Limited · SAIL Refractory Company Limited · SAIL Sindri Projects Limited · Chhattisgarh Mega Steel Limited

Joint Venture Companies :	· NTPC-SAIL Power Company Limited · Bokaro Power Supply Company Private Limited · SAIL Bansal Service Centre Limited · Mjunction Services Limited · Bhilai Jaypee Cement Limited · S&T Mining Company Private Limited · SAIL & MOIL Ferro Alloys Private Limited · International Coal Ventures Private Limited · SAIL-SCI Shipping Private Limited · SAIL SCL Kerala Limited · SAIL-RITES Bengal Wagon Industry Private Limited · SAIL Kobe Iron India Private Limited · TMTSAL SAIL JV Limited · SAL SAIL JVC Limited · SAIL-Bengal Alloy Castings Private Limited · Prime Gold-SAIL JVC Limited · VSL SAIL JVC Limited · Abhinav-SAIL JVC Limited · N.E. Steel & Galvanising Private Limited · North Bengal Dolomite Limited · Romelt-SAIL (India) Limited · NMDC SAIL Limited · Bastar Railway Private Limited

Associate Company :	· Almora Magnesite Limited

Other Companies :	· ICVL Mauritius · Riverdale Mining (PTY) Limited (RML) · Minas De Banga (Mauritius) Limited Mozambique · ICVL Zambeze Mauritius Limited · ICVL Ventures Mauritius · Promark Services Limited RPU · Benga Power Plant (Mauritius) Limited · Minas De Benga LDA · ICVL Zambeze LDA · ICVL Ventures LDA · Minas De Changara LDA · Benga Energia SA · IISCO Ujjain Pipe and Foundry Co. Limited · UEC-SAIL Information Technology Limited

Post-Employment Benefit Plans :	· HSL BSP Provident Fund, Bhilai · DSP Provident Fund, Durgapur · Hindustan Steel Ltd Contributory Provident Fund, Rourkela · Bokaro Steel Employees Provident Fund, Bokaro · IISCO Limited Provident Institution, Burnpur · IISCO Limited Provident Institution, Kolkata · IISCO Limited Works Provident Fund, Burnpur · SAIL ASP Provident Fund, Durgapur · Salem Steel Provident Fund, Salem · Visvesvaraya Iron and Steel Plant Employees Provident Fund Trust, Bhadravati · SAIL Provident Fund, New Delhi · Hindustan Steel Provident Fund, Ranchi · Hindustan Steel Limited, Central Purchase Organisation, Sales and Transport, Calcutta · Provident Fund · Bharat Refractories Provident Fund, Bokaro · IFICO Provident Fund, Ramgarh · CCSO Provident Fund, Dhanbad · SAIL RMD Establishment and Administrative Offices Employees Provident Fund, Kolkata · Bolani Ores Mines Provident Fund , Bolani · SAIL Employees' Superannuation Benefit Fund · SAIL Gratuity Fund

CAPITAL STRUCTURE

AS ON 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount

5000000000	Equity Shares	INR 10/- each	INR 50000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

4130525289	Equity Shares	INR 10/- each	INR 41305.300 Million

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

Particulars	31.03.2017
	Numbers	INR In Million
Equity Shares with voting rights
Opening balance	4130392654	41303.900
Add : Shares converted into shares with voting rights during the year	15000	0.200
Closing balance	4130407654	41304.100

Equity Shares without voting rights *
Opening balance	132635	1.400
Less : Shares converted into shares with voting rights during the year	15000	1.200
Closing balance	117635	1.200
Total Equity shares outstanding	4130525289	41305.300

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

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

iii) The Company does not have a holding company.

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

Equity Shares	Number of Shares	Amount
Equity shares of INR 10 each fully paid up
President of India	3097767449	75.00
LIC of India	441874667	10.70

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

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET (STANDALONE)

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	41305.300	41305.300	41305.300
(b) Reserves & Surplus	318785.300	350653.700	393742.500
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	360090.600	391959.000	435047.800

(3) Non-Current Liabilities
(a) long-term borrowings	190874.800	174957.100	140255.600
(b) Trade payables	73.600	68.300	0.000
(c) Deferred tax liabilities (Net)	0.000	0.000	23951.900
(d) Other long term liabilities	15172.200	16853.000	12392.200
(e) long-term provisions	35939.400	32716.500	37053.400
Total Non-current Liabilities (3)	242060.000	224594.900	213653.100

(4) Current Liabilities
(a) Short term borrowings	198130.400	155748.600	141951.600
(b) Trade payables	52192.000	40027.100	36063.800
(c) Other current liabilities	183774.000	164646.600	140165.300
(d) Short-term provisions	29147.700	26426.500	26387.100
Total Current Liabilities (4)	463244.100	386848.800	344567.800

TOTAL	1065394.700	1003402.700	993268.700

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	487620.300	443788.700	346584.000
(ii) Intangible Assets	15225.800	15462.000	15102.100
(iii) Capital work-in-progress	232753.900	249272.200	291958.200
(iv) Investment property	8.600	8.800	0.000
(v) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	13954.800	12917.500	9190.700
(c) Deferred tax assets (net)	40058.400	17998.000	0.000
(d) Long-term Loan and Advances	4535.200	4499.500	45072.500
(e) Other Non-current assets	15612.200	17469.500	538.300
Total Non-Current Assets	809769.200	761416.200	708445.800

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	157113.500	146795.300	177363.700
(c) Trade receivables	29216.900	31434.900	31920.000
(d) Cash and cash equivalents	2890.900	2979.600	23052.400
(e) Short-term loans and advances	614.700	640.900	30563.300
(f) Other current assets	65670.100	59929.900	21923.500
(g) Assets classified as held for sale	119.400	205.900
Total Current Assets	255625.500	241986.500	284822.900

TOTAL	1065394.700	1003402.700	993268.700

PROFIT & LOSS ACCOUNT (STANDALONE)

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	497671.000	438751.700	457107.800
	Other Income	5356.100	5946.700	10207.800
	TOTAL	503027.100	444698.400	467315.600

Less	EXPENSES
	Cost of Materials Consumed	211257.000	171552.300	185229.000
	Purchases of Stock-in-Trade	0.000	0.000	4.800
	Changes in Inventories of finished goods, work-in-progress and stock-in-trade	1206.300	5406.100	(14081.200)
	Excise duty	53146.900	48232.900	0.000
	Employees benefits expense	89478.300	97149.700	97363.300
	Adjustments pertaining to earlier year	0.000	0.000	882.300
	Exceptional Items (Voluntary retirement compensation)	2167.400	0.000	0.000
	Other expenses	142202.100	145404.400	142053.200
	TOTAL	499458.000	467745.400	411451.400

	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	3569.100	(23047.000)	55864.200

Less	FINANCIAL EXPENSES	25278.200	23004.500	14542.300

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(21709.100)	(46051.500)	41321.900

Less	DEPRECIATION/ AMORTISATION	26799.500	24023.500	17732.800

	PROFIT/ (LOSS) BEFORE TAX	(48508.600)	(70075.000)	23589.100

Less	TAX	(20176.200)	(29860.600)	2662.300

	PROFIT/ (LOSS) AFTER TAX	(28332.400)	(40214.400)	20926.800

	EARNINGS IN FOREIGN CURRENCY
	Export of goods (Calculated on FOB basis)	17297.300	5571.300	15677.100
	TOTAL EARNINGS	17297.300	5571.300	15677.100

	IMPORTS
	Raw Materials		102572.400	120589.100
	Capital Goods		7030.400	5843.900
	Components & Spare parts		3349.900	4191.500
	TOTAL IMPORTS	146790.600	112952.700	130624.500

	Earnings / (Loss) Per Share (INR)	(6.86)	(9.74)	5.07

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	23817.400	19092.200	16770.100
Cash generated from operations	NA	NA	31532.200
Net cash flow from operating activities	21250.300	37997.100	25790.800

QUARTERLY RESULTS

Particulars	30.06.2017 (Unaudited)	30.09.2017 (Unaudited)	31.12.2017 (Unaudited)
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net sales	129834.600	136174.200	153236.500
Total Expenditure	130673.600	127031.500	138834.500
PBIDT (Excluding Other Income)	(839.000)	9142.700	14402.000
Other income	893.100	486.300	1194.800
Operating Profit	54.100	9629.000	15596.800
Interest	5878.600	6434.700	6745.100
Exceptional Items	(101.200)	(2975.400)	(433.500)
PBDT	(5925.700)	218.900	8418.200
Depreciation	6946.700	7622.200	7595.500
Profit Before Tax	(12872.400)	(7403.300)	822.700
Tax	(4858.600)	(2012.700)	391.100
Provisions and contingencies	NA	NA	NA
Profit after tax	(8013.800)	(5390.600)	431.600
Extraordinary Items	NA	NA	NA
Prior Period Expenses	NA	NA	NA
Other Adjustments	NA	NA	NA
Net Profit	(8013.800)	(5390.600)	431.600

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income 365 Days)*	21.43	26.15	25.49

Account Receivables Turnover (Income / Sundry Debtors)	17.03	13.96	14.32

Average Payment Days (Sundry Creditors / Purchases 365 Days)*	90.17	85.16	71.06

Inventory Turnover (Operating Income / Inventories)	0.02	(0.16)	0.31

Asset Turnover (Operating Income / Net Fixed Assets)	0.00	(0.03)	0.09

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.64	0.58	0.50

Debt Equity Ratio (Total Liability / Networth)	1.15	0.89	0.69

Current Liabilities to Networth (Current Liabilities / Net Worth)	1.29	0.99	0.79

Fixed Assets to Networth (Net Fixed Assets / Networth)	2.04	1.81	1.50

Interest Coverage Ratio (PBIT / Financial Charges)	0.14	(1.00)	3.84

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
PAT to Sales ((PAT / Sales) 100)*	%	(5.69)	(9.17)	4.58

Return on Total Assets ((PAT / Total Assets) 100)*	%	(2.66)	(4.01)	2.11

Return on Investment (ROI) ((PAT / Networth) 100)*	%	(7.87)	(10.26)	4.81

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	0.55	0.63	0.83

Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.21	0.25	0.31

G-Score Ratio Financial (Networth / Total Assets)	0.34	0.39	0.44

G-Score Ratio Debt (Debts / Equity Capital)	9.99	8.47	7.24

G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.55	0.63	0.83

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

STOCK PRICES

Face Value	INR 10.00/-
Market Value	INR 83.00/-

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	41305.300	41305.300	41305.300
Reserves & Surplus	393742.500	350653.700	318785.300
Net worth	435047.800	391959.000	360090.600

Long-Term Borrowings	140255.600	174957.100	190874.800
Short Term Borrowings	141951.600	155748.600	198130.400
Current Maturities of Long term debt	16770.100	19092.200	23817.400
Total borrowings	298977.300	349797.900	412822.600
Debt/Equity ratio	0.687	0.892	1.146

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	457107.800	438751.700	497671.000
		(4.016)	13.429

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	457107.800	438751.700	497671.000
Profit/(Loss)	20926.800	(40214.400)	(28332.400)
	4.58%	(9.17%)	(5.69%)

ABRIDGED BALANCE SHEET (CONSOLIDATED)

SOURCES OF FUNDS	31.03.2017	31.03.2016
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	41305.300	41305.300
(b) Reserves & Surplus	329117.300	360209.000
(c) Money received against share warrants	0.100	0.000

(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	370422.700	401514.300

(3) Non-Current Liabilities
(a) long-term borrowings	190874.800	174957.100
(b) Trade payables	73.600	68.300
(c) Deferred tax liabilities (Net)	0.000	0.000
(d) Other long term liabilities	15172.200	16853.000
(e) long-term provisions	35964.000	32737.200
Total Non-current Liabilities (3)	242084.600	224615.600

(4) Current Liabilities
(a) Short term borrowings	198130.400	155748.600
(b) Trade payables	52184.100	39835.400
(c) Other current liabilities	29248.700	164824.900
(d) Short-term provisions	184081.900	26484.100
Total Current Liabilities (4)	463645.100	386893.000

TOTAL	1076152.400	1013022.900

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	487768.300	443957.600
(ii) Intangible Assets	15225.800	15462.000
(iii) Capital work-in-progress	232753.900	249272.200
(iv) Investment property	8.600	8.800
(v) Intangible assets under development	0.000	0.000
(vi) Investments accounted for using the equity method	24104.100	22168.000
(b) Non-current Investments	650.500	622.400
(c) Deferred tax assets (net)	38487.500	16698.100
(d) Long-term Loan and Advances	4535.200	4499.500
(e) Other Non-current assets	15564.800	17439.800
Total Non-Current Assets	819098.700	770128.400

(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	157360.900	147082.400
(c) Trade receivables	29346.900	31514.200
(d) Cash and cash equivalents	3788.300	3455.500
(e) Short-term loans and advances	727.300	651.800
(f) Other current assets	65710.900	59984.700
(g) Assets classified as held for sale	119.400	205.900
Total Current Assets	257053.700	242894.500

TOTAL	1076152.400	1013022.900

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	498289.500	439327.300
	Other Income	4494.800	5290.400
	TOTAL	502784.300	444617.700

Less	EXPENSES
	Cost of Materials Consumed	211614.500	171830.000
	Changes in Inventories of finished goods, work-in-progress and stock-in-trade	1173.400	5404.500
	Excise duty	53271.800	48342.900
	Employees benefits expense	89637.800	97285.700
	Share of (loss) in investments accounted for using equity method	(1939.200)	358.600
	Exceptional Items (Voluntary retirement compensation)	2167.400	0.000
	Other expenses	141921.100	145489.400
	TOTAL	497846.800	468711.100

	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	4937.500	(24093.400)

Less	FINANCIAL EXPENSES	25278.200	23004.500

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(20340.700)	(47097.900)

Less	DEPRECIATION/ AMORTISATION	26816.200	24044.200

	PROFIT/ (LOSS) BEFORE TAX	(47156.900)	(71142.100)

Less	TAX	(19595.200)	(29377.100)

	PROFIT/ (LOSS) AFTER TAX	(27561.700)	(41765.000)

	Earnings / (Loss) Per Share (INR)	(6.67)	(10.11)

LEGAL CASES

High court

THE BOARD OF TRUSTEES OF THE PORT OF BOMBAY VS STEEL AUTHORITY OF INDIA LTD. AND ANR.

high court-Mumbai

Case no:45. S/1828/1988

Case status:Pending

Judge:IST ASSTT. MASTER

Date:2009-06-04T00:00:00Z

High court

UNITED WAREHOUSING PVT LTD STEEL AUTHORITY OF INDIA LTD &ORS

high court-Jai

Case no:39.C.W.(M) 1218/2015

Case status:Pending

Judge:REGISTRAR(ADMN.)

Date:2015-12-03T00:00:00Z

High court

NOBLE CHARTERING INC Vs. STEEL AUTHORITY OF INDIA LTD

high court-Delhi

Case no:CS(COMM) 58/2016

Case status:Pending

Judge:HON BLE MR. JUSTICE VIBHU BAKHRU

Date:2016-07-26

High court

ARGHAKUSUM MONDAL TANMAY MUKHERJEE STEEL AUTHORITY OF INDIA & ORS MANDAMUS APPLICATION

high court-West Bengal

Case no:CO.CT 3/2016

Case status:Pending

Judge:HON'BLE JUSTICE NISHITA MHATRE AND HON'BLE JUSTICE TAPASH MOOKHERJEE

Date:2016-05-20

High court

JHUMKA GOSWAMI K.M. HOSSAIN STEEL AUTHORITY OF INDIA LTD. & ORS

high court-West Bengal

Case no:WP.CT 156/2016

Case status:Pending

Judge:HON'BLE JUSTICE NISHITA MHATRE AND HON'BLE JUSTICE TAPABRATA CHAKRABORTY

Date:2016-07-14

High court

THYSSEN KRUPP MATERIALS AG Vs. THE STEEL AUTHORITY OF INDIA

high court-Delhi

Case no:FAO(OS) 150/2002

Case status:Pending

Judge:HON BLE MR. JUSTICE S.RAVINDRA BHAT HON BLE MS. JUSTICE DEEPA SHARMA

Date:16/04/25

Case Details

Bench:-Bombay

Presentation Date:-				22/08/2017
Lodging No.:-	NMAL/1680/2017	Filing Date:-	22/08/2017	Reg. No.:-	NMA/1913/2017	Reg. Date:-	24/11/2017

Main Matter

Lodging No.:-

APPL/330/2017

Petitioner:-

SURYA CONSTRUCTION -

Respondent:-

STEEL AUTHORITY OF INDIA LIMITED -

Petn.Adv.:-

AJIT MAHADEV SAVAGAVE (I2239)

District:-

MUMBAI

	Bench:-	SINGLE
	Status:-	Pre-Admission	Category:-	NOTICE OF MOTION (APPEAL)

Last Date:-

16/11/2017

Stage:-

FOR REJECTION [ORIGINAL SIDE MATTERS]

Last Coram:-

REGISTRAR(OS)/PROTHONOTARY & SR. MASTER

Act :-

Arbitration and Conciliation Act 1996

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

CORPORATE INFORMATION

Nature of operations

The company, a public sector undertaking conferred with Maharatna status by Government of India, together with its subsidiaries, joint ventures and associate (collectively referred to as the 'Group') is engaged primarily in steel manufacturing business in the country.

FINANCIAL REVIEW

The Company achieved a turnover of INR 491800.000 million during the Financial Year 2016-17, which was higher by 14% over previous year due to increase in both sales volume (8%) as well as Net Sales Realisation (NSR) of Saleable Steel of 5 Integrated Steel Plants by about 6%. The loss after tax of the Company for the Financial Year 2016-17 has reduced to INR 28330.000 million as compared to loss after tax of INR 40210.000 million in the previous Financial Year.

The reduction in loss has been mainly on account of higher sales volume, higher Net Sales Realisation of 5 Integrated Steel Plants, higher production, increase in value added production, lower usage of imported coal in blend, higher usage of CDI in CDI furnaces, reduction in coke rate, improvement in BF productivity, reduction in salaries and wages, decrease in average purchase power rate, foreign exchange gain, etc. However, the same has been partially offset by increase in imported and indigenous coking coal prices, increase in interest cost and depreciation.

The company continued its thrust on optimum utilisation of funds by better fund management. This included replacement of high cost loans with low cost debts, timely repayment of loans including interest, action for future fund raising, etc. to meet their growth objectives. Further, the Company hedged the foreign currency risk on Buyer's Credit and repayment of External Commercial Borrowings depending on market conditions. The Company had borrowings of INR 413960.000 million as on 31st March, 2017. The debt equity ratio of the Company increased to 1.15:1 as on 31st March, 2017 from 0.90:1 as on 31st March, 2016, due to increase in borrowings as well as reduction in net-worth during the year. The net-worth of Company declined substantially from INR 391960.000 million as on 31st March, 2016 to INR 360090.000 million as on 31st March, 2017.

OPERATIONS REVIEW

Production Review

Financial Year 2016-17 has been a year full of challenges for the company. The company faced tough times amidst plunging steel prices, a flood of low-priced imports from China and other countries, unprecedented increase in input prices and a subdued demand of steel.

The new facilities already operational were ramped up during the year. New Blast Furnace at RSP achieved about 100% of its capacity, whereas, other facilities like New Caster and New Plate Mill were also in process of stabilization and achieved 84% and 80% of their respective capacities during the year. The new facilities at IISCO Steel Plant have also been ramped up and the capacity utilization in Hot Metal, Crude Steel and Saleable Steel production was in the range of 50-70% of capacity during this year. At Bhilai Steel Plant, Universal Rail Mill (URM) (with capacity to produce World's longest single-piece 130- meter long rail) along with Rail Welding Line for production of 260 meter Long Rails, has been completed and the Mill has started regular production from Jan'17. Other facilities like Ore Handling Plant Part-A, 2nd Sinter Machine in Sinter Plant-3 and Coke Oven Battery-11 are in regular operation. Further, Bar line of Bar and Rod Mill (BRM) has been completed and hot trial of BRM has started in Mar'17. At IISCO, third converter (#1) in SMS was started in August'16.

Financial Year 2016-17 also witnessed several landmark achievements. The Company achieved highest ever Hot Metal production of 15.73 Million Tonnes (MT) surpassing its previous best of 15.72 MT achieved in 2015-16, highest ever Crude Steel production at 14.50 MT surpassing previous best of 14.29 MT achieved in 2015-16 and highest ever Saleable Steel production at 13.87 MT surpassing previous best of 13.04 MT achieved in 2007-08.

The company has achieved an all-time best performance in case of Continuously-Cast Steel and Sinter Production, with production of 11.77 MT and 23.1 MT registering a growth of 9% and 1% respectively over last year. The company's various initiatives to reduce environmental footprint and enhance operational efficiency have led to significant improvement in environmental parameters as well as techno-economic efficiency. This has enabled the company to produce greener and more environmental friendly steel, than ever before. The Plants recorded the best ever Coke Rate at 473 kg/thm and BF productivity of 1.67 t/m3/day. This was achieved, as a result of higher volume of Hot Metal produced through new state of art Blast Furnaces (29% of total Hot Metal) and increased Crude Steel production through energy efficient Continuous Casting route (81%, up by 5% over CPLY).

The company became true force in transforming the Nation by supplying steel to ISRO for the launch of a record 104 satellites in a single rocket by way of providing high quality stainless steel for the fuel and oxidizer tanks used in the launch vehicle. SSP had earlier supplied steel for the iconic Chandrayan and Mangalyan missions too.

AWARDS AND ACCOLADES WON DURING THE YEAR

Company Level

· The company has won 7 Prime Minister's Shram Awards (involving 26 employees) for the year 2015.

· The company has won 10 Vishwakarma Rashtriya Puraskar Awards (involving 42 employees) for the performance year 2015.

· The company has won Gold Trophy of "SCOPE Meritorious Award for Best Practices in Human Resource Management" for the year 2014-15.

· The company has won Golden Peacock Award for Corporate Governance, by the Institute of Directors, India, for the year 2016.

· The company bagged the Governance Now PSU Award 2016 under the award category 'Relative Growth and Adaptation'.

· The company was awarded the Ispat Rajbhasha Trophy for the year 2014-15 for the company's best official language implementation.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE & DEVELOPMENTS

World Economic Environment

Global economic output grew by 3.1% in 2016, as per IMF in its April, 2017, World Economic Outlook update. Global economic activity is picking up with a long-awaited cyclical recovery in investment, manufacturing, and trade. The economic activity is projected to pick up pace globally in 2017 (3.5%) and 2018 (3.6%), especially due to the emerging markets and developing economies. These emerging economies now account for more than 75% of global growth in output and consumption, almost double the share of two decades ago.

Activity is projected to pick up markedly in emerging market and developing economies because conditions in commodity exporters experiencing macroeconomic strains are gradually expected to improve, supported by the partial recovery in commodity prices, while growth is projected to remain strong in China and many other commodity importers. In advanced economies, the pickup is primarily driven by higher projected growth in the United States, where activity was held back in 2016 by inventory adjustment and weak investment.

Growth in emerging market and developing economies is projected to increase marginally to around 4.5% in 2017, with India expected to grow by 7.2% while growth in China is expected to grow at 6.6%. On the other hand, growth in advanced economies in 2017 is expected to remain at 2.0%.

World Steel Scenario

In 2016, Global Crude Steel production stood at 1,628.5 million tonnes (MT), a growth of 0.8% vis-à-vis 2015, as per World Steel Association. Crude Steel production decreased in Europe, the Americas and Africa. Crude Steel production increased in the CIS, the Middle East, Asia and Oceania.

Annual production in Asia was 1,125.1 MT of Crude Steel in 2016, an increase of 1.6% compared to 2015. China's Crude Steel production in 2016 reached 808.4 MT, up by 1.2% on 2015. China's share of World Crude Steel production increased from 49.4% in 2015 to 49.6% in 2016. Japan produced 104.8 MT in 2016, down by 0.3% compared to 2015. India's Crude Steel production in 2016 was 95.6 MT, up by 7.4% on 2015. South Korea produced 68.6 MT of Crude Steel in 2016, a decrease of 1.6% compared to 2015. The average capacity utilisation in 2016 was 69.3% compared to 69.7% in 2015.

World Steel Association has forecast that global steel demand will increase by 1.3% to 1,535.2 MT in 2017, following growth of 1.0% in 2016. In 2018, it is forecast that global steel demand will grow by 0.9% and will reach 1,548.5 MT. Steel demand in the emerging and developing economies excluding China, which accounts for 30% of world total, is expected to grow by 4.0% in 2017 and then 4.9% in 2018.

Indian Economic Environment

The Indian economy registered a growth of 7.1% in 2016-17, according to Provisional Estimates published by the Central Statistics Office. The above 5% growth trend has continued throughout the current fiscal with the economy registering growth of 7.6%, 6.8%, 6.7% and 5.6% respectively during Q1, Q2, Q3 and Q4 of Financial Year 2016-17.

Growth in the Index of Industrial Production (IIP) is estimated at 5.0% for the period April-March 2016-17, over the same period last year. The cumulative growth in Mining, Manufacturing and Electricity during April-March 2016-17 over the corresponding period of 2015-16 has been 5.4%, 4.9% and 5.8% respectively. Consumer Durables have grown by 5.5%, Capital Goods has grown by 3.1% along with a 3.8% growth in the Infrastructure/Construction goods during April-March 2016-17.

India's growth trajectory is expected to benefit from the Government's commitment to reforms. IMF, in its latest outlook in Apr, 2017, has estimated India's economic growth for the calendar year 2016 at 6.8%, and projects 7.2% and 7.7% growth in 2017 & 2018 respectively. A growth rate of about 6.5 - 7.0% has been projected overall for Financial Year 2016-17 in the current Economic Survey by the Govt. of India. For the Financial Year 2017-18, the GDP has been forecast in the range 6.75% - 7.5%.

Indian Steel Scenario

During April-March 2016-17, Crude Steel production was reported at 97.4 million tonnes, growth of about 8.5% over last year. The finished steel production also registered a handsome growth of 11.3% during April-March 2016-17. Import of total finished steel was at 7.5 million tonnes in the Financial Year 2016-17 and saw a significant decline of 36.6 % compared to same period of last year. India saw a growth of 102.1% in exports during 2016-17 (8.244 million tonnes) over the last year and India emerged as a net exporter of total finished steel.

India's consumption of total finished steel saw a growth of 3% in April-March 2016-17 (83.93 MT) over same period of last year. Further, with the Government's focus on manufacturing and industry coupled with spending on infrastructure (roads, rail and ports etc.), the demand for steel is going to increase in the coming years.

OUTLOOK

Analysts are upbeat over the expected above normal monsoon and higher GDP growth. The slow pace of public and private sector projects is expected to improve with the Government of India's thrust on infrastructure projects. Further, 'Make in India' initiative has got a boost by a slew of measures aimed at improving the ease of doing business in the Country. Small and medium industry- a major employment generator for the economy- has been liberated to participate in the Nation's development in accordance with its potential. Bold measures by the Government such as improved targeting of subsidy, broadening of the tax base and expected buoyancy in tax revenue are all aimed at achieving the fiscal consolidation which had been an area of concern in the recent past.

UNSECURED LOANS:

PARTICULARS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Foreign currency loan
KFW, Germany	3270.600	3771.700
Bank of Tokyo Mitsubishi	0.000	4382.400
Sumitomo Mitsubishi Banking Corp	0.100	6570.000
Natexis Banque	147.500	185.600
Mizuho Coprorate Bank Limited	3221.200	6568.700
Steel development fund	2041.600	2041.600
Long term maturities of finance lease obligations	13553.800	12657.100

SHORT TERM BORROWINGS
Other loan	6000.000	0.000
Commercial paper	78839.300	77212.300
Foreign currency loans	97770.200	55975.900

Total	204844.300	169365.300

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017

(INR In Million)

Particulars	Quarter Ended		Nine Months ended
Particulars	31.12.2017 (Unaudited)	30.09.2017 (Unaudited)	31.12.2017 (Unaudited)
INCOME FROM OPERATIONS
Net Sales	153236.500	136174.200	419245.300
Other Operating Income	1194.800	486.300	2574.200
Total Income from Operations	154431.300	136660.500	421819.500
EXPENSES
Cost of materials consumed	67184.500	62650.600	191922.200
Changes in inventories of finished goods and work-in-progress	7737.900	3518.000	10263.700
Excise Duty	0.000	0.000	14039.000
Employee benefits expense	21872.500	23278.400	65328.100
Finance Costs	6745.100	6434.700	19058.400
Depreciation and Amortization expenses	7595.500	7622.200	22164.400
Other Expenditure	42039.600	37584.500	114986.600
Total Expenses	153175.100	141088.400	437762.400
Profit / (Loss) before Exceptional items and tax	1256.200	(4427.900)	(15942.900)
Add: Exceptional items (Voluntary retirement compensation)	(433.500)	(2975.400)	(3510.100)
Profit / (Loss) before Tax	822.700	(7403.300)	(19453.000)
Tax Expense
- Deferred tax	33.800	(2012.700)	(6837.500)
- Earlier tax	357.300	--	357.300
Profit / (Loss) after Tax	431.600	(5390.600)	(12972.800)
Other Comprehensive Income
- Items that will not be reclassified to profit or loss	55.000	5.900	116.100
- Income tax relating to items that will not be reclassified to profit or loss	(11.800)	1.500	(21.300)
Total Comprehensive Income / (Loss) for the period	474.800	(5383.200)	(12878.000)
Paid-up Equity Share Capital (Face value INR 10/- per share)	41305.300	41305.300	41305.300
Reserves (excluding Revaluation Reserve)
Earnings per Share (EPS) – INR (Basic and Diluted)	0.10	(1.31)	(3.14)

EXTRACT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017

(INR In Million)

Particulars	Quarter Ended		Nine Months ended
Particulars	31.12.2017 (Unaudited)	30.09.2017 (Unaudited)	31.12.2017 (Unaudited)

Total income from operations	153236.500	136174.200	419245.300
Net Profit / (Loss) for the period (before tax, exceptional and / or extraordinary items)	1256.200	(4427.900)	(15942.900)
Net Profit / (Loss) for the period before tax (after exceptional and / or extraordinary items)	822.700	(7403.300)	(19453.000)
Net Profit / (Loss) for the period after tax (after exceptional and / or extraordinary items)	431.600	(5390.600)	(12972.800)
Total comprehensive Income / (Loss) for the period [Comprising Profit / (Loss) for the period (after tax) and other comprehensive income (after tax)]	474.800	(5383.200)	(12878.800)
Paid up equity share capital [Face Value of INR 10/- each]	41305.300	41305.300	41305.300
Reserves excluding revaluation reserve
Earnings per Share (EPS) – INR (Basic and Diluted)	0.10	(1.31)	(3.14)

SEGMENT REVENUE, RESULTS, ASSETS AND LIABILITIES:

(INR In Million)

Particulars	Quarter Ended		Nine Months ended
Particulars	31.12.2017 (Unaudited)	30.09.2017 (Unaudited)	31.12.2017 (Unaudited)
Segment Revenue
- Bhilai Steel plant	42614.200	37656.800	119134.600
- Durgapur steel plant	21103.100	16599.600	50610.700
- Rourkela steel plant	32472.000	29415.700	88502.400
- Bokaro steel plant	36936.300	34541.200	105289.400
- IISCO steel plant	17166.100	15596.300	47079.700
- Alloy steel plant	1601.900	1375.100	4701.300
- Salem steel plant	4361.500	3112.900	10676.600
- Visvesvaraya iron and steel plant	365.200	370.300	1202.700
- Others	10779.100	9198.800	29836.600
Total segment revenue	167399.400	147866.700	457034.000
Less: Inter – segment revenue	14162.900	11692.500	37788.700
Total income from operations (net sales)	153236.500	136174.200	419245.300
Revenue from operations
Segment Results [Profit / (Loss) before interest, exceptional items and tax]
- Bhilai Steel plant	1796.200	3035.200	6749.100
- Durgapur steel plant	687.500	(502.800)	(2063.600)
- Rourkela steel plant	2875.700	567.900	(338.800)
- Bokaro steel plant	3144.100	498.200	2506.400
- IISCO steel plant	(1580.200)	(1653.400)	(6011.400)
- Alloy steel plant	(39.500)	(66.500)	(119.800)
- Salem steel plant	(77.900)	(365.000)	(964.400)
- Visvesvaraya iron and steel plant	(317.700)	(312.800)	(933.100)
- Others	1513.100	806.000	4291.100
Total	8001.300	2006.800	3115.500
Less: Interest expenses	6745.100	6434.700	19058.400
Exceptional items – Gain / (Loss)
- Voluntary retirement compensation	433.500	2975.400	3510.100
Profit / (Loss) Before Tax	822.700	(7403.300)	(19453.000)
Segment Assets
- Bhilai Steel plant	278949.500	279839.900	278949.500
- Durgapur steel plant	63257.600	63871.900	63257.600
- Rourkela steel plant	193489.400	187749.200	193489.400
- Bokaro steel plant	138881.300	138566.600	138881.300
- IISCO steel plant	188061.600	185126.700	188061.600
- Alloy steel plant	5310.500	5399.600	5310.500
- Salem steel plant	23515.800	23952.800	23515.800
- Visvesvaraya iron and steel plant	5589.800	5864.300	5589.800
- Others	211108.100	217936.800	211108.100
Total Assets	1108163.600	1108307.800	1108163.600

Segment Liabilities
- Bhilai Steel plant	71773.000	74509.900	71773.000
- Durgapur steel plant	23798.100	22891.700	23798.100
- Rourkela steel plant	38641.400	36744.200	38641.400
- Bokaro steel plant	39598.300	38022.400	39598.300
- IISCO steel plant	21340.900	15996.000	21340.900
- Alloy steel plant	2194.800	2121.800	2194.800
- Salem steel plant	3396.600	4041.800	3396.600
- Visvesvaraya iron and steel plant	1078.500	1217.400	1078.500
- Others	311786.500	371192.900	311786.500
Unallocated liabilities	247346.800	194831.900	247346.800
Total Liabilities	760954.900	761570.000	760954.900

NOTES:

1. The results have been reviewed by the Audit Committee and taken on record by the Board of Directors in their Meeting held on 8th February, 2018.

2. The results have been reviewed by the Statutory Auditors, as required under Clause 33 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.

3. Revenue from operations for the periods 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’, GST is not included in Revenue from Operations. In view of the aforesaid change, Revenue from Operations for the Quarter and Nine Months ended on 31st December, 2017 are not comparable with the previous periods.

4. Sales include sale to Government Agencies recognized on provisional contract prices during the Nine Months ended 31st December, 2017: Rs 3664.62 crore (corresponding Nine Months of previous year: Rs 2816.80 crore) and cumulatively up to 31st December, 2017: Rs 11145.49 crore (31st December, 2016: Rs 17629.45 crore).

5. The Nine Judges Constitutional Bench of Hon’ble Supreme Court, vide its judgment dated 11.11.2016, has upheld the constitutional validity of Entry Tax Act enacted by various States and has laid down principles/tests for consideration for deciding the specific issues related to levy of Entry Tax. As on 31st December, 2017, the matters are pending before Regular Benches of Hon’ble Supreme Court/Jurisdictional High Courts. Pending decisions of the said Courts, disputed entry tax liabilities of Rs 1716.58 crores have been treated by the Company as contingent liabilities. (Amount of disputed entry tax liabilities as on 31st December, 2016 was Rs 1766.50 crores).

6. Pending decision by various judicial Authorities in the determination of the electricity tariff, claims of Rs 587.72 crore up to 31st March, 2017 made by Damodar Valley Corporation (DVC) in respect of electricity supplied to one Plant of the Company, the amount whereof has been paid to DVC, have been treated as contingent liabilities. Further, from 1st April, 2017 onwards, full invoice value has been considered in the above Financial Results.

7. Exceptional Items for the current Quarter and Nine Months include:

(I) Pursuant to the Hon’ble Supreme Court Judgment dated 2nd August, 2017 in the Common Cause matter regarding illegal mining:-

(a) Government of Odisha and Government of Jharkhand have issued demand/Show cause notices amounting to INR 16912.000 million in respect of Iron Ore. Against the above demands, the Company based on internal assessment has provided INR 3296.800 million during the quarter ended 30th September, 2017. Balance amount of INR 13615.200 million has been treated as contingent liability.

(b) Government of Jharkhand has issued demand/Show cause notices amounting to INR 191.400 million in respect of Limestone during the current Quarter. Against the above demands, the Company based on internal assessment has provided INR 68.600 million during the current quarter ended 31st December, 2017. Balance amount of INR 122.800 million has been treated as contingent liability.

(c) Government of Jharkhand has issued demand/Show cause notices amounting to INR 3334.200 million during the current Quarter in respect of Coal. 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 on similar matter to other Parties, accordingly pending disposal the amount of INR 3334.200 million has been treated as Contingent Liability.

(II) Consequent to the judgement of Hon’ble Supreme Court dated 13th October, 2017 and further interpreted by Hon’ble High Court of Bilaspur vide order dated 24th November, 2017 (to which the Company is not a party), in the matter of establishment of District Mineral Foundation (DMF) under the Mines and Minerals (Development and Regulation) Act, 1957 and prospective contribution required to be made to the DMF by the holder of a mining lease or a prospecting licence-cum-mining lease in addition to the payment of royalty, an amount of INR 208.500 million has been written back during the current quarter (INR 2617.600 million during the nine months ended 31st December, 2017), for which such levy was held not applicable.

(III) Compensation paid on Voluntary Retirement of employees as per the Scheme amounting to INR 573.300 million and INR 2762.300 million during current Quarter and Nine Months respectively.

8. Pending finalization of Salary and Wage agreements w.e.f. 1st January 2017, an all-inclusive cumulative provision towards salary & wage revision (including consequential benefits) of INR 4333.500 million up to 31st December, 2017 (up to 31st March, 2017: INR1071.500 million) has been charged to 'Employee benefits expense’ on estimated basis.

9. In view of the various measures being implemented by the Government to uplift the Steel Industry and to boost the demand coupled with steps being taken by the Company to reduce the cost, improvement in the efficiency/productivity, the Company is certain that it will be able to improve its physical and financial performance in future. Accordingly, the Company is of the opinion that it is probable that sufficient future taxable profit would be available against which the unabsorbed tax losses can be set off. Consequent to which, Deferred Tax Assets (net) of INR 6458.900 million (including INR nil crore on unabsorbed business losses) during the current Nine Months and INR 46517.300 million (including INR 33747.900 million on unabsorbed business losses) up to 31st December, 2017, have been recognised.

10.

(a) Pending finalisation of domestic coal prices of Washed Medium Coking Coal (MCC) with Central Coalfields Limited (CCL) for the FY 2017-18, the same has been accounted for in line with prices settled with Bharat Coking Coal Limited (BCCL) for washed MCC, which is lower by INR 1547.700 million as against the billed amount.

(b) Differential price as claimed by Bharat Coking Coal Limited (BCCL) and Central Coalfields Limited (CCL) for coal supplies from 13/14th January, 2017 to 31st March,2017, amounting to INR 3344.500 million, being the amount billed over and above MoU agreed prices has not been accounted for.

(c) Pending discussion and finalisation, the above liability of INR 4892.200 million has been considered as contingent liability.

11. The Auditors, in their Audit Report on the Standalone Financial Statement for the Year ended 31st March, 2017, have brought out that the Company has not provided for:

i) Entry Tax amounting to INR 10922.800 million, INR 3521.600 million, INR 922.300 million, INR 51.500 million and INR 2542.100 million in the State of Chhattisgarh, Odisha, Uttar Pradesh, Jharkhand and West Bengal respectively.;

ii) Demands of INR 5877.200 million by DVC for supply of electricity.

In respect of items stated at (i) above, the matters are pending before Hon’ble Supreme Court/ various jurisdictional High Courts as on 31st December, 2017. Pending decisions of the said Courts, disputed entry tax liabilities have been treated by the Company as contingent liabilities.

In respect of item stated at (ii) above, the Company’s view is that the cases are sub-judice and pending for adjudication before the various judicial authorities for a long time and outcome is pending.

The above stated disputed demands, contested on valid and bonafide grounds, have been treated as contingent liabilities as it is not probable that present obligations exist as on 31st December, 2017.

Therefore, there is no adverse impact on loss for the quarter/nine months.

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

INDEX OF CHARGES:

S No	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G77012342	100154785	PUNJAB AND SIND BANK	10/01/2018	-	-	5000000000.0	LARGE CORPORATE BRANCH 18/90, CONNAUGHT PLACE, NEW DELHI DL110001IN
2	G75640185	100151467	INDIAN BANK	10/01/2018	-	-	26000000000.0	G-41, CONNAUGHT CIRCUS NEW DELHI DL110001IN
3	G75878330	100151991	THE JAMMU AND KASHMIR BANK LIMITED	10/01/2018	-	-	3000000000.0	E-9, 2ND FLOORSOUTH EXTENSION NEW DELHI DL110043IN
4	G75505552	100151144	CANARA BANK	06/01/2018	-	-	10000000000.0	PCB, CONNAUGHT PLACE, 2ND FLOOR, WORLD TRADE TOWER BARAKHAMBA LANE NEW DELHI DL110001IN
5	G74434184	100148966	BANK OF BARODA	29/12/2017	-	-	10000000000.0	CORPORATE FINANCIAL SERVICES BRANCH, 1ST FLOOR, BANK OF BARODA BUILDING, 16 PARLIAMENT STREET NEW DELHI DL110001IN
6	G74379199	100148786	ALLAHABAD BANK	29/12/2017	-	-	10000000000.0	MANISH COMMERCIAL CENTRE DR. A B ROAD, WORLI MUMBAI MH400030IN
7	G74433962	100148965	PUNJAB NATIONAL BANK	27/12/2017	-	-	20000000000.0	LARGE CORPORATE BRANCH TOLSTOY HOUSE, TOLSTOY MARG, NEW DELHI DL110001IN
8	G69054310	100137991	UNITED BANK OF INDIA	14/11/2017	-	-	5000000000.0	P-90/8, J. C. DAS BUILDING CONNAUGHT CIRCUS NEW DELHIDL110001IN
9	G68732627	100137419	DENA BANK	06/11/2017	-	-	10000000000.0	CORPORATE BUSINESS BRANCH E-13/29, HARSHA BHAWAN, CONNAUGHT CIRCUS NEW DELHI DL110001IN
10	G57377798	100128602	BANK OF INDIA	29/09/2017	-	-	20000000000.0	NEW DELHI LARGE CORPORATE BRANCH 10TH FLOOR, CHANDERLOK BUILDING, 36 JANPATH NEW DELHI DL110001IN

FIXED ASSETS:

· Freehold land

· Leasehold land

· Buildings and related equipments

· Plant and Machinery

· Steel Plant

· Furniture and Fittings

· Vehicles

· Office Equipment’s

· Miscellaneous Articles

· Roads, Bridges and Culverts

· Water Supply and Sewerage

· EDP Equipment’s

· Railway Lines and Sidings

PRESS RELEASE

SAIL SUPPLIES 6.2 LAKH TONNES OF RAILS TO INDIAN RAILWAYS IN FY17

July 26, 2017

NEW DELHI: Steel Authority of India Ltd (SAILBSE -3.82 %) has supplied 6.20 lakh tonnes of rails to the Indian Railways in 2016-17, Parliament was informed today.

"Initially for 2016-17, Railway Board placed a bulk indent on SAIL for supply of 6,24,516 tonnes of rails, which was met by SAIL and it supplied 6,20,049 tonnes of rails during 2016-17 to Indian Railways," Minister of State for Steel Vishnu Deo Sai said in a written reply to Rajya Sabha.

"However, the enhanced requirement of Railways i.e; supply of 8.2 lakh tonnes of rails during the year could not be met due to capacity constraints," the minister informed.

But, with the ramping up of the new 1.2 million tonne Universal Rail Mill at Bhilai Steel Plant, SAIL has now capacity to meet additional demand of Indian Railways, he added.

Sai further said: "The cumulative expenditure incurred by SAIL towards modernisation and expansion, mines and related sustenance schemes, till June 2017 is INR 658220.000 million."

In a separate reply, the minister said, "SAIL has carried out modernisation and expansion programme at all the five major plants viz Bhilai (Chhattisgarh), Bokaro (Jharkhand), Rourkela (Odisha), Durgapur and Burnpur (West Bengal) and special steel plant at Salem (Tamil Nadu)."

INDIA'S STEEL MINISTRY CRITICISES SAIL AS SHORTAGE HITS RAILWAY UPGRADE

September 22, 2017

NEW DELHI, Sept 22 (Reuters) - The Indian government has criticised state-run Steel Authority of India (SAIL) for its failure to supply rails to Indian Railways, according to a letter seen by Reuters.

India’s mammoth state railways, hit by a spate of accidents, is trying to modernise its ageing tracks, but steel shortages have stymied progress.

The steel ministry has asked SAIL, the only supplier of rails to Indian Railways, to make sure it meets its target of 1.14 million tonnes of supplies in 2017/18, according to a letter seen by Reuters.

“It is once again reiterated that the ongoing track renewal and capacity augmentation programme of railways is an important national project and the supply of rail by SAIL is a very critical component for the success of this project,” the letter, dated Sept. 19 and addressed to SAIL Chairman P.K. Singh, said.

Stung by a string of accidents on the world’s fourth-biggest rail network, Indian Prime Minister Narendra Modi recently named a new minister for the railways, which is grappling with chronic under-investment and overcrowding.

Reuters earlier reported the upgrade for the country’s accident-prone network was at risk because of rail shortages from SAIL.

Between April and August, SAIL could supply only 70 percent of its monthly targets set for Indian Railways, the letter said.

For 2017/18, SAIL has committed to providing only 1.14 million tonnes, against a requirement for 1.46 million tonnes.

For the remaining 300,000 tonnes, Indian Railways is likely to float a tender in the next two to three months, said a railways official familiar with the plan.

Jindal Steel and Power Limited, which has for years tried to bag a rail supply contract, will bid for the tender, a senior company official said.

SAIL, which has posted losses for nine straight quarters, is targeting capacity additions of 2 million tonnes a year thanks to a new mill in eastern India.

The steel ministry and Indian Railways did not comment for this article.

SAIL EYES HIGHER MARKET SHARE ON SURGING STEEL DEMAND: CHAIRMAN

September 22, 2017

Addressing the 45th annual general meeting of the state-owned Steel Authority of India Limited (SAIL) here, Chairman P K Singh said the domestic steel demand is improving on the back of government policies and developmental goals, and SAIL is expeditiously equipping itself to serve market requirements fully and claim a broader market share.

New Delhi, Sep 22 (PTI) Armed with latest technologies and higher product mix, SAIL aims to tap big into the steel demand in India, which is projected to become "the fifth- largest economy" this year, its Chairman P K Singh said today.

Addressing the 45th annual general meeting of the state-owned Steel Authority of India Limited (SAIL) here, Singh said the steel demand in India will witness a significant growth in future, given the current stage of development in Indian economy.

The World Steel Association, in its short-range outlook, has forecast 6.1 percent growth in steel consumption for India in 2017, the SAIL chief added.

According to Singh, the domestic steel demand is improving on the back of government policies and developmental goals, and SAIL is expeditiously equipping itself to serve market requirements fully and claim a broader market share.

"SAIL with newer and better technologies at its disposal aims to leverage potential of growth in steel demand by operating at rated capacities, product differentiation and customer satisfaction," Singh said.

The chairman also shared the company's efforts towards product value addition and informed the company is in the final leg of Modernisation and Expansion Programme.

"SAIL has done significant value addition in its product mix, with higher grades of steel... from Rourkela Steel Plant's new plate mill for the oil and gas sector, SAIL HT-600 for the automotive sector and high strength LPG steel grade from Bokaro Steel Plant, etc," Singh said.

At Bhilai Steel Plant (BSP), the world's longest single piece rail of 130 metres is being produced and supplies of welded 260 metres rail panels to the Indian Railways are in progress.

Besides, a 3 mtpa hot strip mill in Rourkela is slated to be installed by 2018.

He further said, "World economic recovery is on track... and presents a healthy sign for industrial and manufacturing activities across globe. India is projected to become the world's fifth-largest economy in 2017, surpassing UK and France and the world's third largest economy by 2023, surpassing Japan and Germany."

Such kind of growth will definitely create larger steel demand and boost consumption in country, the chairman added.

Listing out the achievements of SAIL, Singh said the company since inception has produced 475 million tonnes (mt) of crude steel and partnered in all major national projects requiring steel.

SAIL achieved a turnover of INR 491800.000 million during FY 2016-17, which is higher by 14 per cent over preceding year owing to increase in both sales volume (which grew by 8 per cent) and Net Sales Realisation (NSR) of saleable steel of five integrated steel plants by about 6 per cent, he said.

The increase in NSR was partly due to an overall improvement in price levels and partly due to measures in enriching company's product mix.

SAIL's intensive focus on improving operational parameters resulted in positive EBITDA in all the four quarters of FY 2016-17 and the company trimmed losses by 30 per cent by recording an overall improvement in production, sales and efficiency.

During FY 2016-17, SAIL achieved highest ever hot metal production at 15.73 Million Tonnes (MT), crude steel production at 14.50 MT and saleable steel production at 13.87 MT.

"However, the unprecedented increase in coal prices during FY 2016-17 adversely impacted the cost of production and our overall margins. SAIL had an additional impact of around INR 43000.000 million as compared to FY 2015-16 on account of increase in prices of both imported and domestic coal," the chairman said.

This increase in coal prices, neutralised the significant improvement in Net Sales Realisation (NSR). Notwithstanding the increase in coal price, SAIL could reduce its operational expenditure per tonne of saleable steel by 2 per cent during the fiscal, he added.

The company is also taking initiatives towards remodelling its operations.

SUPPLIED 80% STEEL REQUIRED FOR SARDAR SAROVAR PROJECT: SAIL

September 18, 2017

"Once again partnering in one of the most prestigious and important national projects, Steel Authority of India Limited (SAIL) has supplied 80 per cent steel required for construction of the Sardar Sarovar Project inaugurated by Prime Minister Narendra Modi today," the public sector firm said in a statement.

State-owned SAIL today said it has supplied 80 per cent steel required for the construction of Sardar Sarovar Project, inaugurated by Prime Minister Narendra Modi.

SAIL supplied around 85,000 tonnes of steel (TMT) for the entire Sardar Sarovar Narmada Nigam Ltd (SSNNL) project which comprises all the canals throughout Gujarat which are connected to Narmada River and Dam, the statement said.

The Sardar Sarovar project is the second largest concrete gravity dam (by volume) and has the world's third largest spillway discharging capacity.

The Sardar Sarovar Dam is a gravity dam built on Narmada river near Navagam, Gujarat, which will benefit four states -- Gujarat, Madhya Pradesh, Maharashtra and Rajasthan, the company said.

A part of the Narmada Valley Project, it will help in irrigation and electrical power supply.

The company said it is a part of a large hydraulic engineering project, involving the construction of a series of large irrigation and hydroelectric multi-purpose dams on the Narmada river.

One of the 30 dams planned on river Narmada, Sardar Sarovar Dam (SSD) is the largest structure to be built.

"The project will irrigate more than 18,000 m2 (190,000 sq ft), most of it in drought prone areas of Kutch and Saurashtra. The total installed capacity of the power facilities is 1,450 MW," the steel major said.

SAIL TO RAISE $350 MN FROM OVERSEAS MARKET

September 12, 2017

The company has entered into a pact with State Bank of India (SBI) for arranging the amount via external commercial borrowings (ECB).

Country's largest steel maker SAIL today said it will raise USD 350 million from overseas market.

The company has entered into a pact with State Bank of India (SBI) for arranging the amount via external commercial borrowings (ECB).

In a statement, SAIL said it would raise USD 350 million and the borrowing would have a tenure of seven years.

The money raised will be used by the steel maker to meet expenditure on capital schemes, including modernisation and expansion.

"The ECB has been arranged by SBI from its Hong Kong Branch and would be utilised by SAIL towards meeting expenditure on capital schemes including modernisation and expansion (MEP)," the statement said.

The PSU said it has reached the last leg of its modernisation plans.

"SAIL has tied the ECB at the lowest possible spread and the overall cost (on a fully hedged basis) would work out cheaper than that applicable coupon on term loans and bonds for similar period. This re-emphasises the lenders confidence in the credit worthiness of the company," it said. The ECB pact was signed.

SAIL Q2 NET LOSS NARROWS TO INR 5390.000 MILLION

November 10, 2017

THE PSU HAD CLOCKED A NET LOSS OF INR 7315.800 MILLION IN THE CORRESPONDING QUARTER OF 2016-17, THE COMPANY SAID IN A BSE FILING.

State-run Steel Authority of India Limited (SAIL) said its standalone net loss narrowed to INR 5390.600 million for the quarter ended September 30, 2017.

The PSU had clocked a net loss of INR 7315.800 million in the corresponding quarter of 2016-17, the company said in a BSE filing.

Total standalone income of the Maharatna firm rose by 8 per cent to INR 136660.500 million in July-September period of this fiscal from INR 126457.600 million during the same quarter in 2016-17.

Total expenses also rose by 2.72 per cent to INR 141088.400 million in the quarter under review as against INR 137348.000 million in the year-ago period.

In a separate statement, SAIL said "despite improved sales revenue, earnings were impacted by huge rise in imported coal price, which partially negated the higher accruals."

In order to neutralise the rise in input costs, SAIL said it is continually ramping up production from new facilities.

Simultaneously, the company is optimising the utilisation of its finishing facilities to increase the high-value product offerings for better market realisation.

SAIL said its operational performance also exhibited good numbers in Q2 FY18 by registering the highest ever quarterly saleable steel production at 3.659 Million Tonnes (MT) surpassing the previous best of 3.626 MT achieved in Q4 FY17.

SAIL Chairman P K Singh said, "Our focus is on reducing operating cost of assets, prudent finance management, efficient production process and increased share of value added and branded products is beginning to show results."

SAIL is aiming to supply large quantities of steel in prestigious projects including Sagarmala, upcoming Bharatmala project and railway expansion, Singh said.

"As part of SAIL's turnaround initiatives, our continuous large group communication exercises across units have helped embed our priorities in the company's collective psyche, which will keep strengthening SAIL's foundations for profitable growth," he added.

SAIL has supplied steel to various mega projects like Agra-Lucknow Expressway, Lucknow Metro rail project, Sardar Sarovar Narmada Nigam Ltd (SSNNL) project and the country's longest river bridge -- Dhola-Sadiya -- in Assam.

SAIL, ARCELORMITTAL ASKED TO EXPEDITE STEEL JV: OFFICIAL

November 09, 2017

"I THINK THEY (BOTH THE PARTIES) HAVE SET CERTAIN TIMELINES. THEY ARE MOVING ON THOSE TIMELINES. WE HAVE ASKED THEM TO EXPEDITE IT (THE PROPOSED JOINT VENTURE)," STEEL JOINT SECRETARY SUNIL BARTHWAL SAID HERE.

The government today said it has asked state-owned SAIL and the world's largest steelmaker ArcelorMittal to expedite setting up of their proposed joint venture for an INR 50000.000 million auto-grade steel plant.

"I think they (both the parties) have set certain timelines. They are moving on those timelines. We have asked them to expedite it (the proposed joint venture)," Steel Joint Secretary Sunil Barthwal said here.

He was speaking to reporters on the sidelines of India Steel Summit 2017 organised by Assocham.

When asked about the proposed joint venture, Barthwal said, "Both the parties are negotiating the final agreement. So, as soon as that is finalised they should come with it" Steel Authority of India (SAIL) and ArcelorMittal in May 2015 entered into a memorandum of understanding (MoU) to explore the possibility of setting up an autograde steel manufacturing facility under a joint venture in India. There were some technical issues with regard to the JV which the government is trying to sort out, the official said. The much-awaited joint venture will also focus on producing specialised grade steel products for defence, space and automobiles.

The proposed JV will construct a cold rolling mill and other downstream finishing facilities in India, touted as one of the fastest-growing automotive markets in the world with production expected to double between 2014 and 2020, from 3.6 million units to 7.3 million units. A task force team comprising representatives from both SAIL and ArcelorMittal has been working on detailed due diligence and preliminary feasibility study and all other issues for setting up the joint venture company.

SAIL RAISES FLAT STEEL PRICES BY INR 600 A TONNE; HIKE DOUBLE OF LAPSED RAIL SUBSIDY

October 16, 2017

The subsidy is provided by the railways to encourage transportation of commodities in the lean season of monsoon when demand is subdued. It lapsed September 30.

Steel Authority of India has raised prices of its flat products by INR 600 per tonne while keeping rates of longs unchanged, an industry source told Moneycontrol. The hike by the state-owned steelmaker, coming as it does after some months of no change, will more than compensate for the lapse in railways’ INR 300 per tonne subsidy for steel transport in the lean monsoon season.

The subsidy is provided by the railways to encourage transportation of commodities in the lean season of monsoon when demand is subdued. It lapsed September 30.

Flats are currently trading in the market at around INR 39,000 per tonne while longs are going for INR 34,500- INR 35,000 per tonne.

Private steel producers did not raise the prices in October after having increased them in September quarter by 2 to 6 percent, sequentially. SAIL had not hiked the prices then.

October is usually a time for price hikes in the steel sector as general demand for new vehicles and construction and real estate picks up on the passage of monsoon amidst the festival season.

According to a report by Kotak Securities, domestic prices have trailed global prices due to increased supplies from new capacities. Flat products find use in automobile and consumer durable industry.

Prices of longs, a product whose supply chain is characterized by many small players, declined during July-September by 2 percent compared to same quarter a year ago due to weak construction demand. Long products are used in real estate and construction activities.

“I don’t see the prices firming up any more over the next one to two months,” an official with a company, making downstream steel products that find use at airports and malls, said.

Domestic steel demand increased 4 percent on year to 42.9 million tonnes in the first half of the ongoing financial year. The rise was led by the 16 percent jump in April-August flat product sales to 15.27 million tonnes against the 2 percent decline in demand for longs to 17.12 million tonnes, according to the Kotak report.

SAIL'S JAGDISHPUR UNIT WILL BE MADE OPERATIONAL IN SOME WEEKS: SMRITI IRANI

October 10, 2017

The Union Minister of Textiles and Information and Broadcasting who is on a two-day tour of Amethi, inspected the SAIL unit this evening.

Union Minister Smriti Irani said that the Steel Authority of India Limited's unit at Jagdishpur, which has been lying closed, will be made operational in some weeks.

The Union Minister of Textiles and Information and Broadcasting who is on a two-day tour of Amethi, inspected the SAIL unit this evening.

She told reporters that once the unit is made operational, it will give a new direction to regional development and also provide employment.

Once this unit is operational, production of 1.5 lakh tonne TMT iron rods and 23,000 tonne crash barrier and sheets will commence, an official government release said.

This will be a first-of-its-kind unit in Uttar Pradesh, it said.

The union minister also took stock of preparations for a high-profile BJP event here tomorrow.

She also met senior party leaders at Salon in Raebareli followed by her visits in Amethi and Musafirkhana.

BJP chief Amit Shah and Irani will unveil a slew of projects in the Congress bastion at the event.

SAIL PLANS TO BID FOR STRESSED ASSETS OF ESSAR, BHUSHAN STEEL

December 31, 2017

According to sources, "a team of SAIL has visited the units of Essar Steel and Bhushan Steel almost 20 days back to assess how are units and to evaluate whether to bid (for) the units or not".

The country's largest steelmaker SAIL is considering bidding for the stressed assets of Essar Steel and Bhushan Steel that are facing insolvency proceedings.

According to sources, "a team of SAIL has visited the units of Essar Steel and Bhushan Steel almost 20 days back to assess how are units and to evaluate whether to bid (for) the units or not".

Essar Steel was among the initial 12 companies identified by the Reserve Bank of India (RBI) for insolvency proceedings.

"Since we (both Essar and Steel Authority of India Ltd) are in the same sector, we are keeping our options open for buying stressed assets," a SAIL official said.

Bhushan Steel CFO Nitin Johari said "I have nothing to say. There is a process going on thus I can't comment on it".

However, Essar Steel could not be reached out for comments.

Essar Steel owes about Rs 45,000 crore to lenders.

Essar Group had earlier submitted expression of interest for Essar Steel and said it will submit a resolution plan to the insolvency resolution professional (IRP) within the scheduled time frame.

The government has last month promulgated an ordinance to bar wilful bank loan defaulters as well as those with NPA (non-performing asset) accounts from bidding in auctions being done to recover loans under the insolvency process.

The ordinance comes as a blow to defaulting promoters seeking to reclaim their firms that are under insolvency proceedings, aims at putting in place safeguards to prevent unscrupulous persons from misusing or vitiating the provisions of the IBC (Insolvency and Bankruptcy Code), the corporate affairs ministry had earlier said.

SAIL APPROVES JV WITH ARCELORMITTAL FOR AUTOMOTIVE STEEL

December 13, 2017

However, definitive agreements in this regard will be finalised in due course subject to financial viability, the PSU said in a filing to the BSE.

Domestic steel giant SAIL today said its board has approved the proposal to enter into a joint venture with the world's largest steelmaker ArcelorMittal for manufacturing high-end automotive steel.

"The Board of SAIL in its meeting held on December 12, 2017, has approved the proposal for the signing of a legally non- binding term sheet with ArcelorMittal S.A for entering into a JV for automotive Steel Business," Steel Authority of India Ltd (SAIL) said.

However, definitive agreements in this regard will be finalised in due course subject to financial viability, the PSU said in a filing to the BSE.

SAIL and ArcelorMittal had entered into an MoU in May 2015 to explore the possibility of setting up an auto-grade steel manufacturing facility under a joint venture in India.

Steel Minister Chaudhary Birender Singh last week had said that the JV was likely soon and the proposed Rs 15,000- crore auto-grade steel plant project with a capacity of 1.5 million tonnes per annum could be scaled up to 2.5 MT.

Singh had said that ArcelorMittal has the technology and they are keen to have a JV with SAIL.

The minister has said that in the next 3-4 years, India would be a hub for car manufacturing and that it is estimated that the country would manufacture about 28 percent of the total cars manufactured in the world.

SAIL MAY RETURN TO PROFIT NEXT YEAR: STEEL SECRETARY

December 25, 2017

The country's largest steelmaker has been posting losses since 2015-16, mainly on account of slowdown in the sector.

The steel ministry expects SAIL to show profit next year on the back of continued improvement in global commodity market.

The country's largest steelmaker has been posting losses since 2015-16, mainly on account of slowdown in the sector.

"This year, these two PSUs (SAIL and RINL) have reduced their losses. Next year, hopefully they will be making into profits," Steel Secretary Aruna Sharma told PTI.

In 2015-16, SAIL had posted a loss of Rs 4,021, while in 2016-17 its loss was Rs 2,833 crore.

Steel Authority of India Ltd's (SAIL) standalone net loss had narrowed to Rs 539.06 crore for the quarter ended September 30, 2017.

Stating that five of the seven steel PSUs, including NMDC, MOIL and MSTC, are well established, the secretary said the vision of the PSU is absolutely clear and their action plans are very clear.

"So, they will be on their growth path as they are moving ahead with it. That is very very clear," the secretary said.

In a stern warning, Steel Minister Chaudhary Birender Singh in the beginning of this year had asked PSUs, including SAIL, to "perform or perish" saying complacency cannot be tolerated at a time when private players are excelling on various parameters.

Chairing a meeting of chiefs of top steel PSUs, the minister pulled up public sector firms like SAIL and RINL for not only lagging behind on international benchmarks, but were behind their private counterparts and complacent in ramping up capacities.

Also indicting SAIL for slow progress in modernisation as well as ramping up of capacity, the minister had said deadlines were missed one after another which cannot be tolerated anymore, according to the ministry sources.

SAIL SUPPLIES 70% STEEL FOR MIZORAM'S TUIRIAL POWER PROJECT

December 16, 2017

"Committed to supply and partake in the projects of national development, Steel Authority of India Ltd (SAIL) has supplied around 70 per cent steel for the Tuirial Hydro Electric Power project, Mizoram's biggest power project," the company said in a statement.

Domestic steel giant SAIL today said it has supplied about 70 per cent of steel for Mizoram's biggest power project -- Tuirial Hydro Electric Power project -- dedicated to the nation today by Prime Minister Narendra Modi.

SAIL said it has supplied approximately 5,000 metric tonnes of plates, structural and TMTs for this project including value added steel plates.

"Committed to supply and partake in the projects of national development, Steel Authority of India Ltd (SAIL) has supplied around 70 per cent steel for the Tuirial Hydro Electric Power project, Mizoram's biggest power project," the company said in a statement.

SAIL is supplying steel for several vital projects in country's north eastern region.

"The company supplied around 90 per cent steel for constructing country's longest Dhola-Sadiya bridge in Assam, which was also recently inaugurated," it said.

Apart from this, SAIL is supplying steel for projects including Bogibeel Rail-cum-Road bridge, several power plants including 750 MW power plant of NTPC, 600 MW Kameng Hydro- electric project, Trans Arunachal highway etc., it said.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	INR
US Dollar	1	INR 64.82
UK Pound	1	INR 90.40
Euro	1	INR 79.76

INFORMATION DETAILS

Information Gathered by :	PNM

Analysis Done by :	DIV

Report Prepared by :	NKT

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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