Contents

Letter to Shareholders 02

Board of Directors 06

Ten years at a Glance 08

Board’s Report 10

Management Discussion and Analysis Report 25

Standalone Financial Statements 32

Independent Auditors’ Report 79

Comments of C&AG 87

Secretarial Audit Report 88

Corporate Governance Report 90

Corporate Governance Certificate 96

Business Responsibility Report 97

Consolidated Financial Statements 103

Independent Auditors' Report on Consolidated 155

Financial Statements

Comments of C&AG on Consolidated 161

Financial Statements

Statement containing salient features of the Financial 163

Statement of Subsidiaries (Form AOC-1)

Extract of Annual Return (MGT-9) 165

Particulars of Loans, Guarantees or Investments under Section 186 175

Conservation of Energy, Technology Absorption, etc. 176

Report on Corporate Social Responsibility 182

Principal Executives 184

Notice 185

Proxy Form 191

 Letter to
Shareholders

Dear Shareholders,

I am privileged to apprise you about the achievements of your developing economies is projected to firm up further, with
Company during the Financial Year 2017-18. continued strong growth in emerging Asia and Europe. The
long-term projections by World Bank also indicate that the
The World growth outlook projected by IMF in January' 2018
prolonged period of weak growth expectations, characterized
reflects a positive forecast for both advanced and developing
by systematic downgrading of long-term forecasts, seems to
economies. At 3.8 percent, Global growth rate in 2017 was
have come to an end.These healthy growth projections for
the fastest since 2011. With financial conditions still supportive,
World's economy indicate a steady growth prospect for the
Global growth is expected to tick up to 3.9 percent in 2018
Global steel industry as well.
and 2019. Aggregate growth in emerging market and

Narrow Parallel Flange Beams manufactured at Universal Section Mill at SAIL's IISCO Steel Plant.

2
World Steel Association (WSA), in its April’2018 forecast, said indigenous coal, increase in average rate of purchased power
that Global steel demand will reach 1,616 Million Tonnes (MT) and increase in interest and depreciation costs.
in 2018, an increase of 1.8% over 2017. It is forecast that
Global steel demand will grow by 0.7% to reach 1,627 MT in On the production front, Financial Year 2017-18 witnessed
2019. WSA has further added that, in 2018, high confidence, several landmark achievements through ramping up of new
strong investment levels and a recovery in commodity prices facilities and surpassing all previous records in physical
are generating a virtuous cycle for steel demand globally, both performance. Your Company achieved its highest ever
in developed and developing economies. production of Hot Metal of 15.983 MT, Crude Steel of 15.021
MT and Saleable Steel of 14.071 MT. It also clocked an all-
Reflecting on the domestic scenario, World Bank has forecast time best performance of Continuous-Cast (CC) Steel
a growth rate of 7.3 per cent for India this year and 7.5 per production of 12.80 MT with a growth of 9% over previous
cent for the next two years, making it the fastest growing best of 11.77 MT, achieved in 2016-17. Moving towards
economy among major emerging economies. This augurs well completing the balance modernization and expansion projects,
for the domestic steel industry. The growth in domestic steel Bhilai Steel Plant's new BF#8 ‘Mahamaya’, having an annual
consumption is strongly backed by robust development of Hot Metal production capacity of 2.8 MT, was blown-in on
India's infrastructure sector. It is further supported by 7.8% 2nd February, 2018. SMS-III of the Plant was also started on
growth in domestic finished steel consumption during the FY 31st March, 2018 with blowing of first heat from Converter-1.
2017-18, as a result of growing activities of steel intensive
sectors. India overtook Japan as World's second largest steel On the back of various new initiatives to improve productivity
producing nation in the last quarter of the Financial Year and efficiency across all Plants, every Unit has registered
2017-18. It is likely that India may soon stake a permanent improvement. The Financial Year 2017-18 witnessed
claim to be World's second largest steel producer after China. substantial increase in supply of rails to Indian Railways, with
The 300 MTPA steel production capacity for India by 2030 as commercial production from new Universal Rail Mill (URM)
envisioned in "National Steel Policy 2017" is commensurate enabling a 39% growth in total UTS-90 Rails production (9.03
with this growth projection. lakh tonnes) w.r.t previous year (6.49 lakh tonnes) coupled
with record long rail dispatch of 3.17 MT. At Durgapur Steel
Your Company achieved sales turnover of ` 58,297 crore Plant, Narrow Gauge Wheels from Wheel & Axle Plant and
during the Financial Year 2017-18, which is higher by 19% High Strength Structural E350 grade from Medium Structural
over previous year. However, the net sales turnover of ` 56,893 Mill (MSM) were developed in-house. The initiative of casting
crore was higher by 30% over last year's net sales turnover of and rolling of 125 sq. mm Billets at Durgapur will further
` 43,866 crore. Slimming the losses by around 83%, your increase the productivity. At Rourkela Steel Plant, the New Plate
Company's Profit after Tax (PAT) on standalone basis improved Mill recorded a growth of 48.1% over CPLY by rolling more
to ` (-) 482 crore in FY18 from ` (-) 2,833 crore in FY17. The than 8 lakh tonnes in FY18. The Mill exported 1,27,000 tonnes
consolidated profit after tax of the Company stood at ` (-) 281 of CE marked plates to the European Market during the Financial
crore for FY18 as against ` (-) 2,756 crore in FY17. The Year 2017-18. The Hot Strip Mill recorded all-time best
persistent strategic approach to improve operational profitability performance of producing 16.8 lakh tonnes of HR Coils during
assisted SAIL to improve the EBITDA in FY18 to ` 5,184 crore, 2017-18, which is a rise of 8% over previous fiscal. With
a substantial increase over FY17. consistent effor ts, Bokaro Steel Plant registered record
production of Cast Slab at 3.276 MT (previous best: 2.990
The improvement in financial performance is backed by MT), highest ever production of CR Coil for sale at 0.916 MT
improved operational performance indicated by increase in against previous best of 0.776 MT. In addition, the latest Unit
Saleable Steel production, higher share of Concast production, of SAIL i.e. IISCO Steel Plant (ISP), Burnpur has made progress
improved product mix, improvement in BF Productivity, towards stabilization and has achieved positive PBT in
reduction in Coke Rate & Specific Energy consumption, 4th quarter of FY18. It is expected that in FY19, ISP will continue
reduction in specific wage bill, etc. However, the same has to make rapid progress and contribute a decent share in the
been partially offset due to provisioning towards various mining overall profitability of your Company.
related issues, increase in average coal prices, higher usage
of imported coal in the blend due to lower availability of During the year, your Company's total requirement of iron ore

3
was met from captive sources. SAIL's captive mines produced Company organized 114 "Gaon Ki Ore" workshops in 26 States/
26.83 million tonnes (MT) of iron ore. Union Territories for increasing awareness on usage of steel.
Small consumers continued to be a focus area and 0.8MT of
It is a matter of great pride that your Company continues the steel was sold through the retail marketing channels. As part
tradition of being a trusted and valued partner in nation's of the strategy of increasing sales of value added steel, BSL's
development. In FY18, SAIL has supplied steel to projects of Cold Rolling Mill #3 commenced supplies to consumers in
national importance like Dhola-Sadiya Bridge, Sardar Sarovar the highly demanding, high value auto segment. Supply of long
Project, etc. contributing to India's growth story under the ambit rail panels (260 meters) to Indian Railways from BSP's Universal
of National Steel Policy 2017 and 'Make in India' movement. Rail Mill registered a growth of around 112% in 2017-18. Your
SAIL also supplied steel for various defence projects including Company also supplied 50,000 tons of steel in customized
indigenously built Anti-Submarine Warfare (ASW), Stealth sizes from its service centres in 2017-18, representing 53%
Corvette INS-Kiltan and was associated with iconic projects growth over the previous financial year.
of Chandrayan and Mangalyan missions.
Realizing the importance of restoration and rehabilitation of
On the marketing front, SAIL launched diverse initiatives to degraded eco-system for maintaining and enhancing bio-
target defined market segments. During 2017-18, your diversity, your Company is taking appropriate steps including
Company achieved its best ever sales volume of 14.1 million ecological restoration of mined out areas, fresh plantation, bio-
tonnes (MT), registering a growth of 7.4% over CPLY. sequestration of CO2, enhancing utilization of wastes through
Continuing to maintain its presence in international markets, application of 4Rs (Reduction, Reuse, Recycling and Recovery),
SAIL exported 0.7 MT of steel, a growth of 4% over CPLY. To environment friendly disposal of Poly Chlorinated Bi-Phenyls,
tap the vast potential of steel consumption in rural India, your utilization of renewable energy sources, etc. More than 20.1

Hot Metal being poured into Mixer of Steel Melting Shop-II at SAIL's Rourkela Steel Plant.

4
million saplings have been planted across SAIL Plants and awards and accolades by several forums.
Mines till date since inception. Giving special thrust for
plantation, more than 8.27 lakhs of saplings have been planted Your Company believes that building trust will enhance its
during 2017-18. reputation and boost the confidence of its investors &
stakeholders. In line with this, SAIL has been proactively and
Under the Company-wide turnaround program 'SAIL Uday', regularly sharing key information with all stakeholders through
initiated in 2016-17, a roadmap for improvement in the areas use of different communication channels.
of Raw Materials, Operations, Sales & Marketing, Supply Chain
& Logistics, Personnel and Human Resource has been At the end, I take this opportunity to thank all the shareholders
developed and deployed. This program has yielded positive for their continued trust and support. I also thank all our other
results as evidenced by the performance during the year. stakeholders who have contributed internally and externally in
the improved performance of the Company. I must specifically
Corporate Governance in your Company is reinforced by its thank our valued Customers, trusted suppliers, the Central and
vision and credos. SAIL has formulated policies to ensure State Governments and our talented employees, who have
transparency, accountability, disclosures and reporting to always stood by the Company and contributed in the progress
uphold highest ethical standards in conduct of business while of SAIL. I look forward to the continued support and unflinching
complying with laws, regulations and guidelines including DPE trust they have placed in us.
guidelines. Ethical conduct throughout the Organization is
promoted with the primary objective of enhancing shareholders
value. SAIL's effort as a responsible corporate citizen and
Place: New Delhi (Saraswati Prasad, IAS)
partner in Nation Building has been recognized in the form of Dated: 13th August, 2018 Chairman & Managing Director

5
BOARD OF DIRECTORS (As on 13th August, 2018)

Chairman & Managing Director Bankers

Shri Saraswati Prasad, IAS
Axis Bank Limited
Special Secretary & Financial Adviser,
Allahabad Bank
Ministry of Steel, Government of India. Bank of India
Functional Directors Bank of Baroda
Bank of Maharashtra
Finance MUFJ Bank
Shri Anil Kumar Chaudhary Barclays Bank PLC
Canara Bank
Projects & Business Planning Corporation Bank
Dr. G. Vishwakarma Deutsche Bank AG
Dena Bank
Commercial HDFC Bank Limited
Ms. Soma Mondal ICICI Bank Limited
IDBI Bank limited
Personnel IDFC Bank Limited
Shri Atul Srivastava IndusInd Bank Limited
Indian Bank
Technical Jammu & Kashmir Bank Limited
Shri Harinand Rai Kotak Mahindra Bank Limited
Mizuho Bank Limited
Government Directors Punjab National Bank
Punjab & Sind Bank
Shri Puneet Kansal, IAS
RBL Bank Limited
Joint Secretary, Ministry of Steel, State Bank of India
Government of India Sumitomo Mitsui Banking Corporation
Syndicate Bank
Independent Directors
United Bank of India
Prof. Ashok Gupta United Overseas Bank
Yes Bank Limited
CA Parmod Bindal

Smt. Anshu Vaish

Statutory Auditors
Dr. Samar Singh M/s. Singhi & Co.
Shri Nilanjan Sanyal Chartered Accountants
M/s. Chatterjee & Co.
CA K.S. Chauhan Chartered Accountants
Prof. N.K. Taneja M/s. V.K. Dhingra & Co.
Chartered Accountants
M/s. A.K. Sabat & Co.
Chief Executive Officers (Permanent Invitees) Chartered Accountants
Rourkela Steel Plant Cost Auditors
Shri Ashwini Kumar
M/s. R.J. Goel & Co.
Durgapur Steel Plant Cost Accountants
Shri A.K. Rath M/s. Sanjay Gupta & Associates
Bhilai Steel Plant Cost Accountants
Shri M. Ravi M/s. Shome & Banerjee
Cost Accountants
Bokaro Steel Plant
Shri P.K. Singh

IISCO Steel Plant Secretarial Auditor

Shri Anirban Dasgupta M/s. Agarwal S. & Associates
Company Secretaries
ED (F&A) and Secretary
Shri M.C. Jain
Registered Office
Ispat Bhawan, Lodi Road, New Delhi-110003
Phone: 24367481; Fax: 24367015
Internet: www.sail.co.in
E.mail: secy.sail@sailex.com
CIN: L27109DL1973GOI006454

6
7
 Ten Years at a Glance
FINANCIAL HIGHLIGHTS (` crore)
2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09

Gross sales 58297 49180 43294 50627 51866 49350 50348 47041 43935 48738
Net sales 56893 43866 38471 45208 46189 43961 45654 42719 40551 43204
Earnings before depreciation, interest and tax ( EBIDTA ) 5184 672 (2204) 5586 4951 5621 7658 9030 11871 10946
Depreciation 3065 2680 2402 1773 1717 1403 1567 1486 1337 1288
Interest & Finance charges 2823 2528 2300 1454 968 748 678 475 402 259
Profit / (Loss) before exceptional items (703) (4536) (6906) 2359 2266 3470 5413 7069 - -
Exceptional items : Gain / (Loss) (56) (315) (101) - 959 (229) (262) 125 - -
Profit / (Loss) before tax ( PBT ) (759) (4851) (7008) 2359 3225 3241 5151 7194 10132 9399
Provision for tax / Income Tax refund and (277) (2018) (2986) 266 608 1070 1608 2289 3378 3228
deferred tax asset ( - )
Profit / (Loss) after tax ( PAT ) (482) (2833) (4021) 2093 2616 2170 3543 4905 6754 6170
Dividends - - - 826 834 826 826 991 1363 1074
Equity capital 4131 4131 4131 4131 4131 4131 4131 4130 4130 4130
Reserves & Surplus (net of DRE) 31583 31879 35065 39374 38536 36894 35680 32939 29186 24018
Net Worth 35714 36009 39196 43505 42666 41025 39811 37069 33317 28148
(Equity Capital and Reserves & Surplus)
Total Loans 45409 41396 35141 29898 25281 21597 16320 19375 16511 7563
Net Fixed Assets 58612 50285 45926 36169 26771 16777 17127 15059 13615 12305
Capital work-in-progress 18395 23275 24927 29196 33651 35891 28205 22226 14953 6550
Current Assets (including short term deposits) 29638 25545 24304 28482 26891 27616 28431 36544 39154 34676
Current Liabilities & Provisions 24068 21486 18992 16338 15212 13012 12225 12172 11073 12277
Working Capital 5570 4060 5312 12145 11679 14604 16206 24372 28081 22398
(Current Assets less Current Liabilities)
Capital Employed 64182 54345 51238 48314 38450 31381 32921 39431 41696 34704
(Net Fixed Assets + Working Capital
Mkt price per share (In `) 70.20 61.20 43.00 68.35 71.40 62.35 94.05 170.00 252.55 96.45
(As at the end of the period)
Key Financial Ratios
EBIDTA to average capital employed (%) 8.7 1.3 (4.3) 12.9 14.2 17.5 21.0 21.7 31.1 34.7
PBT to net Sales (%) (1.3) (11.1) (18.2) 5.2 7.0 7.4 11.3 16.8 25.0 21.8
PBT to average capital employed (%) (1.3) (9.2) (13.6) 5.4 8.4 10.1 14.2 17.3 26.6 29.8
Return on average net worth (%) (1.3) (7.5) (9.7) 4.9 6.1 5.4 9.2 13.9 22.0 24.1
Net worth per share of `10 86.5 87.2 94.9 105.3 103.3 99.3 96.4 89.7 80.7 68.1
Earnings per share of `10 (1.2) (6.9) (9.7) 5.1 6.3 5.3 8.6 11.9 16.4 14.9
Price-earning ratio ( times ) (60.2) (8.9) (4.4) 13.5 11.3 11.9 11.0 14.3 15.4 6.5
Dividend per share of `10 - - - 2.0 2.0 2.0 2.0 2.4 3.3 2.6
Effective dividend rate (%) - - - 2.9 2.8 3.2 2.1 1.4 1.3 2.7
Debt - Equity (times) 1.3 1.1 0.9 0.7 0.6 0.5 0.4 0.5 0.5 0.3
Current ratio ( times ) 1.2 1.2 1.3 1.7 1.8 2.1 2.3 3.0 3.5 2.8
Capital employed to turnover ratio ( times ) 0.9 0.9 0.8 1.0 1.3 1.6 1.5 1.2 1.1 1.4
Working capital turnover ratio ( times ) 10.5 12.1 8.2 4.2 4.4 3.4 3.1 1.9 1.6 2.2
Interest coverage ratio ( times ) 0.6 (0.7) (1.9) 1.8 2.3 2.6 3.8 7.1 14.4 29.0
Dividend payout ratio (%) - - - 39.4 31.9 38.1 23.3 20.2 20.2 17.4

PRODUCTION (Unit: '000T)

Item 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09

Hot Metal 15938 15726 15721 15413 14447 14266 14116 14888 14505 14442
Crude Steel 15021 14496 14279 13908 13579 13417 13350 13761 13506 13411
Pig Iron 270 495 642 ` 223 214 106 261 323 267
Saleable Steel 14074 13867 12381 12842 12880 12385 12400 12887 12632 12494
- Semi Finished Steel 2609 3170 3054 3007 2760 2422 2527 2394 2392 2206
- Finished Steel 11465 10697 9327 9835 10120 9962 9872 10493 10240 10288

8
VALUE ADDED STATEMENT
(` crore)
For the year 2017-18 2016-17

Value of own production 57636 49598

Other Revenues 1059 58695 1080 50678
Less: Cost of Raw Materials 26679 21126
Stores and Spares 2879 2835
Power and Fuel 5810 5234
Excise Duty 1404 5315
Freight Outward 2242 1162
Other Operating Cost 5703 44716 5702 41373

Total Value Added 13979 9305

Establishment Cost 8850 8948
Financing Cost 2823 2528
Corporate Income Tax -277 -2018
Income Retained in Business
Depreciation 3065 2680
Bonds Redemption Reserve 367 524
Balance of Profit -849 -3357
Retained in Business -482 2583 -2833 -153

Total Value Applied 13979 9305

SHAREHOLDING PATTERN
(AS ON 31.03.2018)
Category Number of Number of % of Equity
Holders Equity Shares

GOVERNMENT OF INDIA 1 3097767449 75.00

FINANCIAL INSTITUTIONS(INS. COS.) 11 417266678 10.10
BANKS 61 138990705 3.37
MUTUAL FUNDS 64 111011437 2.69
FOREIGN PORTFOLIO INVESTORS 125 175039973 4.24
GLOBAL DEPOSITORY RECEIPTS 2 117635 0.00
COMPANIES 2723 37501447 0.91
(including Trusts & Clearing Members)
INDIVIDUALS 355860 151098256 3.65
(including NRI & Employees)
IEPF AUTHORITY 1 1731709 0.04

TOTAL 358848 4130525289 100.00

9
BOARD’S REPORT
To, in average rate of purchased power and increase in interest cost and
depreciation, etc.
The Members,
Steel Authority of India Limited, SAIL continued its thrust on judicious fund management by timely repayment
New Delhi of loans including interest, advance planning and action for future fund raising,
etc. to meet its growth objectives. The Company had borrowings of `45,409
The Board of Directors has the pleasure of presenting the 46th Annual Report
crore as on 31st March, 2018 vis-à-vis `41,396 crore as on 31st March, 2017.
of Steel Authority of India Limited (SAIL, the Company) together with the Audited
The Company has fully hedged the foreign currency risk on Buyers' Credit and
Standalone and Consolidated Financial Statements for the Financial Year ended
repayment of External Commercial Borrowings. The debt equity ratio of the
31st March, 2018.
Company increased to1.27:1 as on 31st March, 2018 from 1.15:1 as on 31st
A. FINANCIAL REVIEW March, 2017 due to increase in borrowings as well as reduction in net worth
Your Company achieved sales turnover of `58,297 crore during the Financial during the year. The net worth of Company declined from `36,009 crore as
Year 2017-18, which is higher by 19% over previous year due to increase in on 31st March, 2017 to `35,714 crore as on 31st March, 2018.
both sales volume (7%) as well as Net Sales Realisation (NSR) of Saleable M/s. CARE Ratings, M/s. India Ratings and M/s. Brickwork Ratings, RBI
Steel of 5 Integrated Steel Plants by about 20%. However, the net sales turnover approved credit rating agencies, assigned 'CARE AA- Outlook: Negative', 'India
of `56,893 crore was higher by 30% over last year's net sales turnover of Ratings AA- Outlook: Negative' and 'BWR AA Outlook: Negative' ratings
`43,866 crore. The loss after tax of your Company for the Financial Year respectively for SAIL's long term-borrowing programme.
2017-18 was reduced to a level of `482 crore compared to loss after tax of
`2,833 crore in the previous Financial Year. B. OPERATIONS REVIEW
The loss of your Company during Financial Year 2017-18 has reduced mainly Production Review
on account of increase in Saleable Steel Production, Concast Production,
Saleable Steel Sales & Net Sales Realization of 5 Integrated Steel Plants, Financial Year 2017-18 witnessed several landmark achievements through
improved product mix, higher usage of CDI in CDI furnaces, reduction in Coke ramping up of new facilities and surpassing all previous records in physical
Rate, improvement in BF Productivity, improvement in Specific Energy performance. Your Company achieved its highest ever production of Hot Metal
Consumption, reduction in salaries & wages, etc. However, the same has of 15.982 million tonnes(MT), Crude Steel of 15.020 MT and Saleable Steel
been partially offset due to provisions made towards various mining related of 14.074 MT.
issues, increase in average imported and indigenous coal prices, increase in Your Company achieved an all-time best performance of Continuous-Cast
stores & spares, repair & maintenance, security expenses, higher usage of (CC) Steel Production of 12.794 MT with a growth of 9% over previous best
imported coal in the blend due to lower availability of indigenous coal, increase of 11.77 MT, achieved during 2016-17. The proportion of CC in Crude Steel

Hon’ble Prime Minister, Shri Narendra Modi dedicating modernized and expanded Bhilai Steel Plant to the Nation at Bhilai.

10
Shri Birender Singh, Union Minister of Steel, dedicating to the Nation the upgraded Blast Furnace-1-Parvati of SAIL’s Rourkela Steel Plant.

increased to 85% in comparison to 81% achieved in the previous Financial 2016-17) and Specific Energy Consumption at 6.68 Gcal/tcs (previous best
Year. New records in operating efficiency parameters such as Coke Rate, BF 6.69 Gcal/tcs during 2014-15).
Productivity and Specific Energy Consumption were also achieved. IISCO Steel Plant (ISP) achieved best annual production of Hot Metal at 2.055
Bhilai Steel Plant's new BF#8 'Mahamaya', having an annual Hot Metal MT (previous best 1.81 MT during 2016-17), Crude Steel at 1.801 MT (previous
production capacity of 2.8 MT, was blown-in on 2nd February, 2018. SMS-III best 1.397 MT during 2016-17) and Saleable Steel at 1.687 MT (previous
was also started on 31st March, 2018 with blowing of first heat from Converter- best 1.338 MT during 2016-17). ISP also achieved best ever Coke Rate, CDI,
1. The Financial Year 2017-18 has witnessed substantial increase in supply BF Productivity and Specific Energy Consumption for the year with Coke Rate
of rails to Indian Railways, with commercial production from new Universal at 412 kg/thm (previous best 446 kg/thm during 2016-17), CDI at 97 kg/thm
Rail Mill(URM) enabling a 39.0% growth of total UTS-90 Rails Production (previous best 62 kg/thm during 2016-17), Blast Furnace Productivity at 1.62
(8.70 lakh ton) w.r.t. previous year (6.49 lakh ton) coupled with record long T/cum/day (previous best 1.43 T/cum/day during 2016-17) and Specific
rail dispatch at 3.17 lakh ton. Energy Consumption at 6.49 Gcal/tcs (previous best 7.20 Gcal/tcs during
2016-17).
Various new initiatives were undertaken at Durgapur Steel Plant to improve
productivity and efficiency in process. During the Financial Year 17-18, Narrow Your Company renewed various initiatives to reduce environmental footprint
Gauge wheels from Wheel & Axle Plant and high strength structural E350 and enhance operational efficiency and this has led to significant improvement
grade from Medium Structural Mill (MSM) were developed in-house. New in environmental parameters as well as techno-economic efficiency. This
initiatives such as casting of 125 sq. mm. billets at Billet Caster m/c-1 and enabled SAIL to produce greener and more environmental friendly steel than
rolling of TMT bars with 125 sq. mm. billets at Merchant Mill will further ever before. SAIL recorded the best ever Coke Rate at 456 kg/thm, BF
increase the productivity. Productivity of 1.70 t/m3/day and Specific Energy Consumption at 6.49 Gcal/
TCS. Your Company was able to achieve this as a result of higher volume of
At Rourkela Steel Plant, by rolling more than 8 lakh tonnes of plates, New Hot Metal produced through new state of art large volume Blast Furnaces
Plate Mill recorded a growth of 48.1% over 2016-17. The Mill exported about (30% of total Hot Metal, up by 5% over CPLY) and increased Crude Steel
1,27,000 tonnes of CE marked plates to the European market during the Production through the energy efficient CC route (85% of total Crude Steel, up
Financial Year 2017-18. The Hot Strip Mill recorded all-time best performance by 9% over CPLY).
of producing 16.8 lakh tonnes of HR coils during 2017-18, which is a rise of Your Company, by supplying steel, partnered with prestigious and projects of
8% over previous fiscal. national importance like Dhola-Sadiya Bridge, Sardar Sarovar Project, etc. to
With consistent efforts, Bokaro Steel Plant registered record production of be a part of Country's growth story under the ambit of National Steel Policy
cast slab at 3.276 MT (previous best: 2.990 MT) and highest ever production 2017 and 'Make in India' movement.
of CR coil for sale at 0.916 MT (previous best: 0.776 MT). Major Techno- Your Company in addition to supplying steel for various defence projects
economic parameters at the Plant also recorded the best ever figures with including indigenously built Anti-Submarine Warfare (ASW), Stealth Corvette
Coke Rate at 470 kg/thm (previous best 480 kg/thm during 2016-17), Blast INS-Kiltan, was also associated with iconic projects such as Chandrayan and
Furnace Productivity at 1.70 T/cum/day (previous best 1.68 T/cum/day during Mangalyan missions.

11
Power captive sources. Your Company's captive mines produced about 26.83 million
tonnes (MT) of iron ore. In case of coking coal, about 2MT was met from
Your Company has always strived to optimally utilize its captive power
indigenous sources (Coal India Limited & captive sources) and for the balance
resources to ensure reliability of power supply as well as availability of power
requirement of coking coal (13.38 MT), the Company had to depend on imports
at an optimum cost. During the Financial Year 2017-18, about 65% of the total
due to limitation in availability within the Country. In the Financial Year
requirement of 10653 Million Units(MU) was met from the captive Power
2017-18, production in captive collieries of the Company was about 0.97 MT,
Plants. SAIL has been the pioneer in utilizing open access regulations to its
out of which 0.60 MT was raw coking coal and balance 0.37 MT of non-
advantage with one of the first enterprises in the Country to start inter-regional
coking coal. In case of fluxes, around 1.33 MT of limestone and 0.72 MT of
wheeling of captive power. Continuing the legacy, this year too, SAIL Plants
dolomite were produced, giving a production of 2.05 MT fluxes from captive
procured about 435 MU of power through open access which is around 4% of
sources. For thermal coal, your Company depends entirely on purchases from
total power requirement. This included purchase of about 201 MU from the
Coal India Limited except small quantity produced from captive mines.
power exchanges.
The iron ore production at Barsua mine remained suspended since 17th May,
In order to further enhance the share of captive power and supply additional
2014 on the direction of Hon'ble Supreme Court. For resumption of iron ore
power required after completion of ongoing expansion, new captive power
production, continual efforts were made to get the clearance from Hon'ble
capacity of 290 MW is in advanced stage of installation by Joint Venture
Supreme Court for starting the mining operations and after necessary
Companies viz. NTPC-SAIL Power Company Limited (NSPCL) and Bokaro
clearances, the iron ore production from Barsua mine resumed on 20th May,
Power Supply Company Pvt. Limited (BPSCL), which own and operate most
2018.
of captive facilities of the Company.
In order to expedite capacity expansion projects of mines, following
Besides captive generation, the consumption of electricity in the processes is
Environment and Forest Clearances have been obtained during the Financial
also being emphasized through various measures which will result in lower
Year 2017-18:
power consumption per tonne of saleable steel production after the full-fledged
operation of expansion units. • Environment Clearance for setting up of 2 million tonnes per annum
capacity Dolomite Mine at Baraduar was recommended by Expert
As a responsible corporate house, your Company is committed for development Appraisal Committee of Ministry of Environment, Forest and Climate
and usage of renewable power sources. While, 2MWp capacity of Solar Plants Change (MoEFCC) on 22nd December, 2017.
have already been installed, actions are under way for installation of another
198MWp solar capacity in near future. Further, your Company has entered • Stage-II Forest Clearance for ML-162 lease of Barsua was granted by
into a JV agreement with Green Energy Development Corporation of MoEFCC on 23rd October, 2017.
Odisha(GEDCOL) to set up 10 MW Hydel Power at Mandira dam of Rourkela • On 24th July, 2017, MoEFCC had modified the Stage-I Forest Clearance
Steel Plant, which will be utilizing the potential energy of the water being conditions of 6.9 Sq. Mile lease of Bolani Mine issued vide Order dated
discharged from the dam for usage in the Steel Plant to generate electricity. 24th February, 1999.

Raw Materials • Stage-I Forest Clearance for diversion of Sabik Kisam forest lands under
5.1 Sq. Mile lease and 6.9 Sq mile lease of Bolani Mine were granted by
During Financial Year 2017-18, total requirement of iron ore was met from MoEFCC on 12th September, 2017.

Iron Ore mining operation at Kiriburu Iron Ore Mine.

12
• Stage-I Forest Clearance for Jhillingburu-I lease of Gua Iron Ore Mine With commencement of production at the Universal Rail Mill at Bhilai, supply
was granted by MoEFCC on 25th September, 2017. of long rail panels (260 meters) to Indian Railways registered a growth of
around 112% in 2017-18. This Mill produces the longest single rail in the
However, the Stage-II Forest Clearances for the capacity expansions of Gua
World (130 meters).
and Chiria mines and opening of South-Central Blocks in Kiriburu-
Meghahatuburu mines in Saranda forest in Jharkhand are yet to be granted by Overall supplies of rails to the Indian Railways by your Company grew by 41%
MoEFCC. In view of its criticality to the capacity expansion projects, the matter to reach the highest ever levels at 0.87 MT.
is being actively pursued with the Government.
Customization of supply is an important avenue for maximizing customer
Consequent to the approval of Ministry of Mines, Government of India on satisfaction and revenue. Your Company supplied around 50,000 tons of steel
26th February, 2018 under Section 6(1)(b) of MMDR Act in respect of 12 Iron in customized sizes from its service centres in 2017-18, which represents a
Ore Leases of SAIL Mines in Jharkhand, Government of Jharkhand on growth of 53% over the previous Financial Year.
6th March, 2018 has extended the Lease period of Dhobil Mines upto 7th March,
Your Company continues to be a major contributor to the infrastructure sector
2038. This will facilitate extension of 12 Iron Ore Leases of SAIL Mines in
of the Nation. Sales of Plate Mill Plates, a major input, reached highest ever
Jharkhand.
levels at 2.12 MT, a growth of 16% over the previous year. Large quantities of
Government of Karnataka vide letter dated 10th November, 2017 has forwarded Plates were supplied to prestigious power and irrigation projects in the Financial
the proposal for reservation of 150 acres of iron ore area in Ramandurga area Year 2017-18.
in favour of VISP/SAIL for approval of Ministry of Mines, Government of India.
Public Procurement Policy for Micro and Small Enterprises
Impact of Judgment passed by Hon'ble Supreme Court in Common Cause
As required by the Public Procurement Policy of the Government of India, the
Consequent to the judgement dated 2nd August, 2017 of the Hon'ble Supreme information on procurement from Micro & Small Enterprises during Financial
Court in the matter of Common Cause, States of Jharkhand and Odisha have Years 2017-18 and 2016-17 is given below:
issued demand notices for payment of compensation amounting to a total of
(` crore)
`1963.60 crore (Odisha - `204.58 crore & Jharkhand - `1759.02 crore)
under Section 21(5) of the MMDR Act, for EC violations related to iron ore, Particulars 2017-18 2016-17
flux and coal mines till date. These notices were issued without giving any
Total Amount of Procurement 4143.67 3246.42
opportunity of being heard.
In order to mitigate the risk of closure of SAIL mines in Odisha and Jharkhand Total Procurement from MSE 858.17 767.04
beyond 31st December, 2017 due to non-compliance of demand notices of %age Procurement from MSE 20.71 23.63
respective State Government, SAIL has filed Writ Petitions before the Hon'ble
High Courts challenging the demands (not for coal) issued by Governments Modernisation & Expansion Programme
of Odisha and Jharkhand. As no stay was provided by Hon'ble Jharkhand and
Odisha High Courts on the notices of State Governments, therefore, to avoid Your Company is in the last leg of implementation of on-going Modernisation
closure of mines, SAIL under protest without prejudice to its rights and & Expansion Programme. During the Financial Year 2017-18, your Company
contentions raised in the writ petitions filed in respective High Courts, deposited has achieved many milestones. At Bhilai Steel Plant, New Blast Furnace has
a sum of `66.89 crore (Govt. of Odisha) and `200.00 crore (Govt. of been blown in and is under regular operation. First Heat from Coverter-1 at
Jharkhand) on 30th December, 2017. New Steel Melting Shop has been taken and Hot trials are in progress. A
capital expenditure of `5,130 crore has been incurred during Financial Year
The notices received for coal mines, were challenged by SAIL before the 2017-18 and capex planned for 2018-19 is `4,000 crore.
Revisional Authority (RA), Ministry of Coal(MoC), Government of India on
1st February, 2018. Vide Order dated 14th March, 2018, RA, MoC has stayed The details of Addition, Modification & Replacement (AMR) Schemes under
the execution of the notices till further orders and directed for no coercive implementation are given in the Management Discussion & Analysis (MD&A)
action against SAIL. Report.

Return of Parbatpur and Sitanala Coal Blocks C. HUMAN RESOURCE MANAGEMENT REVIEW
Due to reduction in coal mining lease area as well as coal reserves, the two Your Company recognizes contribution of its Human Resources in providing it
recently allotted Coking Coal Blocks namely, Parbatpur and Sitanala have the competitive advantage. The Company has achieved its present level of
become unviable. Therefore, after due diligence, your Company has returned excellence through investment in its human resource, where skill and knowledge
these Coal Blocks to Ministry of Coal(MoC) in March, 2018. SAIL has requested constitute the basis of every initiative - be it technology or innovation.
MoC to refund the amounts paid including bank guarantee, submitted at the Developing skills and capabilities of employees to improve manpower utilization
time of allocation of these Blocks and also for allotment of potential Coking and labour productivity is the key thrust area of Human Resource Management
Coal Blocks in lieu of the returned Blocks in line with recommendations made (HRM) in the Company.
by NITI Aayog. Your Company provides an environment conducive for learning, encourages
Sales & Marketing adoption of best practices in every area and nurtures creativity and innovation
among employees. Human Resource initiatives in SAIL are focused on
During the year 2017-18, your Company achieved its best ever sales volume developing team spirit, employee empowerment and their involvement in
of 14.1 million tonnes (MT), registering a growth of about 8% over CPLY. various improvement activities. Strategic alignment of HRM to business
Continuing to maintain its presence in international markets, SAIL exported priorities and objectives has facilitated smooth transition to state-of-the-art
0.7 MT of steel, a growth of about 4% over the previous financial year. technology in the Modernization and Expansion Projects.
To tap the vast potential of rural India, your Company organized 114 "Gaon Ki Enhanced Productivity with Rationalized Manpower
Ore" workshops in 26 States/Union territories for increasing awareness of
Your Company achieved the Labour Productivity (LP) of 344 TCS/Man/Year in
steel. Small consumers continued to be a focus area and 0.8MT of steel was
2017-18. The manpower strength of the Company was 76,870 nos. as on
sold through the retail marketing channels.
31.3.2018 with manpower rationalization of 6,094 nos. achieved during the
Your Company simultaneously continued its efforts towards selling value added year. The enhanced productivity with rationalized manpower could be achieved
steel. Supplies from the Cold Rolling Mill #3 at Bokaro have commenced to as a result of judicious recruitments, building competencies and infusing a
consumers in the highly demanding, high value auto segment. sense of commitment and passion among employees to go beyond and excel.

13
Trend of enhanced productivity and manpower rationalization since 2007-08 Harmonious Employee Relations
onwards is depicted below:
SAIL has maintained its glorious tradition of building and maintaining a
conducive and fulfilling employer-employee relations environment. The healthy
practice of sorting out and settling issues through discussions with trade
unions/workers' representatives enabled the Company in ensuring workers'
participation at different levels and establishing a peaceful industrial relations
climate. Some of the bi-partite forums are functioning since early seventies
and are sufficiently empowered to address different issues related to wage,
safety, and welfare of workers, arising from time to time, thus, helping in
establishing a conducive work environment.
Bipartite forums like National Joint Committee for Steel Industry (NJCS), Joint
Committee on Safety, Health & Environment in Steel Industry (JCSSI), etc.
with representation from major central Trade Unions as well as representative
Unions of Plants/Units meet on periodic basis and jointly evolve
recommendations/ action plans for ensuring a safe & harmonious work culture
which gets substantiated from the harmonious Industrial Relations enjoyed
over the years by SAIL Plant/Units, marked with diverse work culture at multi-
locations.
In addition, Quality Circles, Suggestion Schemes, Shop Welfare Committees,
Safety Committee, Canteen Management Committee, Productivity Committee,
etc. also offer multiple avenues for enhanced workers' participation. Workers
Developing Employee Capabilities & Competencies are also kept abreast of strategic business decisions and their views sought
thereon through structured /interactive workshops.
Your Company believes that people's development is the key for overall growth
and training facilitates the development of employee's knowledge and skills, Communication with employees at various levels on a wide range of issues
so that the resultant advancement of competence contributes towards impacting the Company's performance as well as those related to employees'
attainment of organisation's goals and objective. SAIL has been making welfare is done in a structured manner across the Company. Mass
sustained efforts through various training and development activities with focus communication campaigns are undertaken at Chief Executive Officer / Senior
on preservation, transfer and improvement of skills, knowledge and technology Officers' level involving structured discussion with large group of employees.
in collaboration with reputed organizations and development of effective These interactive sessions help employees to align their working with the
managerial competencies in association with premier institutes. goals and objective of the Company leading to not only higher production and
productivity but also enhance the sense of belongingness of the employees.
Preparing employees for tomorrow, for effectively taking up challenges and
discharging new roles and responsibilities is being given a major thrust. Overall Grievance Redressal Mechanism
41,355 employees were trained against target of 33,533 employees during Effective internal grievances redressal machinery has been evolved and
the year on various contemporary technical and managerial modules. established in SAIL Plants and Units, separately for Executives and

Shri Saraswati Prasad, Chairman & Managing Director, SAIL visiting Cold Rolling Mill - 3 of Bokaro Steel Plant.

14
Inauguration of new premises of Deepika Ispat Sikshya Sadan, the free school for the underprivileged students set up by SAIL, Rourkela Steel Plant (RSP).

Non-executives. Joint grievance committees have been set up at Plant/Unit Initiatives for Socio-economic Development of SCs /STs & Other Weaker
level for effective redressal of grievances. Sections of the Society
SAIL Plants/Units are maintaining 3 stage grievance handling mechanism and SAIL follows Presidential Directives on Reservation for Scheduled Castes and
employees are given an opportunity at every stage to raise grievances relating Scheduled Tribes in the matter of recruitments and promotions. As on 1.4.2018,
to wage irregularities, working conditions, transfers, leave, work assignments out of total manpower of 76870, 12632 belong to SCs (16.43%) and 11309
and welfare amenities, etc. Majority of grievances are redressed informally in belong to STs (14.71%).
view of the participative nature of environment existing in the Steel Plants. The
system is comprehensive, simple and flexible and has proved effective in SAIL Plants and Units including Mines are situated in economically backward
promoting harmonious relationship between employees and management. regions of the Country with predominant SC/ST population. Therefore, SAIL
has contributed to the overall development of civic, medical, educational and
Against 376 staff grievances received during the Financial Year 2017-18 with other facilities in these regions. Some of the contributions are:
16 grievance pending from previous year, 366 staff grievances have been
disposed of during the year, achieving 97.34% fulfilment. • Recruitment of non-executive employees, which comprise close to 85 %
of the total employees, is carried out mainly on regional level and hence,
Further, during Financial Year 2017-18, 856 grievances have been received a large number of SCs/STs and other weaker section of the society get
under Centralised Public Grievance Redress and Monitoring the benefit of employment in SAIL.
System(CPGRAMS), a National level online system managed by Department
of Administrative Reforms and Public Grievance (DARPG), Government of • Over the years, a large group of ancillary industries has also developed in
India and 23 grievances had been carried forward from the previous Financial the vicinity of Steel Plants. This has created opportunities for local
Year. Total 864 grievances have been disposed of during Financial Year 2017- unemployed persons for jobs and development of entrepreneurship.
18, thereby achieving fulfilment rate of 98.20%. During the year, 92% grievances
• For jobs of temporary & intermittent nature, generally contractors deploy
have been disposed within 0-15 days while only 8% were disposed within
workmen from the local areas, which again provide an opportunity for
16-30 days' time frame. Government of India has fixed a time limit of 30 days
employment of local candidates of economically weaker section.
for disposal of the Public Grievances.
Remuneration Policy • Establishment of SAIL Steel Plants in economically backward areas has
given a fillip to the economic activities, thus, benefiting the support
In SAIL, pay and other benefits for executives are based on the Presidential population providing different types of services.
Directives issued by Ministry of Steel, Government of India. The last pay revision
effective from 1st January, 2007 was done in accordance with Presidential • Steel Townships developed by SAIL have the best of medical, education
Directives dated 5th October, 2009. In case of Non-executive employees, the and civic facilities and are like an oasis for the local Scheduled Castes,
salaries and wages are finalized / revised in bipartite forum of National Joint Scheduled Tribes and other population who share the fruits of prosperity
Committee for Steel Industry (NJCS). The last NJCS agreement was finalized along with SAIL.
and signed on 1st July, 2014, effective from 1st January, 2012. In terms of SAIL has undertaken several initiatives for the socio-economic development
notification dated 5th June, 2015 issued by Ministry of Corporate Affairs, of SCs/STs and other weaker sections of the society which are mainly as
Government of India, the provisions of section 197 of the Companies Act, under:
2013 are not applicable to Government Companies. As such, the disclosures
to be made in the Board's Report in respect of overall maximum managerial • Special Schools have been started exclusively for poor, underprivileged
remuneration and managerial remuneration in case of absence or inadequacy children at five integrated steel plant locations. The facilities provided
of profits are not included in this Report. include free education, mid-day meals, uniforms including shoes, text

15
 books, stationary items, school bags, water bottles and transportation in has been present in most of these programs. Further, Awareness Programmes
some cases. on the Act are held at Plant, Units and Corporate Office regularly.
• No tuition fee is charged from SC/ST students studying in the Company SAIL received a total of 3,364 applications and 625 appeals under the Act
run schools, whether they are SAIL employees' wards or non-employees' during the Financial Year 2017-18, all of which have been disposed-off within
wards. the stipulated time frame under the Act. CIC has also taken up 70 cases and
• Free medical health centres for poor have been set up at Bhilai, Durgapur, most of these cases were disposed-off in favour of the Company.
Rourkela, Bokaro and Burnpur providing free medical consultation, Since enactment of the Act, SAIL has received a total of 38,710 applications
medicines, etc. to the peripheral population mainly comprising of SC/ST and 5,760 appeals upto 31st March, 2018, which were disposed-off within
and weaker sections of society. the stipulated time. Out of these, 736 cases were taken up by the CIC and
• SAIL Plants have adopted tribal children. They are being provided free most of these cases were disposed-off in favour of the Company.
education, uniforms, text books, stationery, meals, boarding, lodging and Citizen Charter
medical facilities for their overall growth at residential hostels, Saranda
Suvan Chhatravas, Gyanodaya Hostel and an exclusive Gyan Jyoti Yojana Your Company is totally committed to excellence in public service delivery
for nearly extinct Birhor Tribe. through good governance, by a laid down process of identifying citizens, our
commitment to them in meeting their expectations and our communication to
• For Skill Development and better employability, tribal school passouts them of our key policies, in order to make the service delivery process more
have been sponsored for coaching in premier institutes for IIT/JEE entrance effective.
examinations and for trainings along with monthly stipend,
accommodation, transportation and fooding facility at various ITIs, Nursing SAIL's Citizen Char ter has outlined commitment of SAIL towards its
and other vocational training institutes. stakeholders, thereby empowering them to demand better products and
services. Objectives of the Citizen's Charter of SAIL may be summarized as
Implementation of Presidential Directives on Reservation for SC/ST below:
• Liaison Officers have been appointed as per Presidential Directives for • Ensuring citizen-centric focus across all its processes by adopting Total
due compliance of the Orders and instructions pertaining to reservation Quality Management Principles for improvement of products and servicers.
for SCs/STs/OBCs at Plants/Units of SAIL.
• Ensuring effective citizen communication channels.
• SC/ST Cell is functioning in all of the main Plants/Units. A member
belonging to SC/ST community is associated in all DPCs/Selection • Demonstrating transparency and openness of its business operations by
Committees. A sufficiently senior level officer of SC/ST category is hosting the Citizen's Charter on the Corporate website.
nominated for the purpose as per the level of the Recruitment Board / • Working towards delight of citizens, by fail-safe processes and in case of
Selection Committees/DPC. exigencies leveraging its service recovery processes, like Grievance
• Internal workshops for Liaison Officers for SC/ST/OBC and other dealing Redressal, Handling Complaints, etc.
officers of SAIL Plants/Units are conducted at regular intervals through Disclosure under the Sexual Harassment of Women at Workplace
an external expert to keep them updated on the reservation policy for SC/ (Prevention, Prohibition and Redressal) Act, 2013:
ST and other related matters.
The Company has set up Internal Complaints Committees in line with the
• Plants/Units of SAIL have SC/ST Employees' Welfare Associations which requirement of the Sexual Harassment of Women at the Workplace (Prevention,
conduct regular meetings with Liaison Officers on implementation of Prohibition and Redressal) Act, 2013. These Committees have been set up to
reservation policy & other issues. In addition, an Apex level umbrella redress complaints received regarding sexual harassment. All employees of
body namely SAIL SC/ST Employees Federation also exists in SAIL to the Company are covered under these Rules. The details of sexual harassment
represent the issues of SC/ST Employees in a coordinated manner. A complaints received and disposed of during the year 2017-18 are as under:
meeting with the Federation at the level of Director (Personnel) is organized
on a regular basis. Number of complaints received : 2
Implementation of Right to Information Act, 2005 Number of complaints disposed off : 2
The provisions under the Right to Information Act, 2005(Act) are being D. AWARDS & ACCOLADES WON DURING THE YEAR
complied by all the Plants and Units of SAIL. All statutory reports including
Annual Report are being sent to Ministry of Steel and also being uploaded on Company Level
the website of the Company-www.sail.co.in. Your Company has appointed • Your Company has won 3 Prime Minister's Shram Awards (involving 18
Public Information Officers(PIO)/Asstt. Public Information Officers and Appellate employees) for the Performance Year 2015.
Authorities and Transparency Officer under Sections 5 and 19(1) of the Act in
each Plant and Unit for speedy redressal of the queries received under the • Your Company has won 8 Vishwakarma Rashtriya Puraskar Awards
Act. Under Sec.5(5), all the officers/ line managers responsible for providing (involving 34 employees) for the Performance Year 2015.
information to the PIO are called Deemed PIO, and are made equally responsible • Your Company has won Gold Trophy of "SCOPE Meritorious Award for
as PIO, towards timely submission of information to the applicant. Best Practices in Human Resource Management" for the Year 2014-15.
An exclusive RTI Portal has been developed with link available on the website • Your Company has won Governance Now Award in the Turnaround
of the Company. All the Plants/Units have listed 17 manuals and details of (Financial) Category on 28th February, 2018.
Authorities under the Act are uploaded on the website of the Company. Quarterly
• SAIL's "Ispat Bhasha Bharti" received first prize for the best in-house
Returns and Annual Returns on implementation of the Act are being submitted
journal for the Year 2016-17 of Town Official Language Implementation
online through the CIC portal. Implementation of online request has already
Committee.
been introduced from 1st May, 2015. A compilation of Record Retention Policy
of various functions of Corporate Office has also been uploaded on the website IISCO Steel Plant
of the Company. In addition to this, compilations of important decisions of
• IISCO Steel Plant bagged the Best Performer Award in energy saving in
CIC, DOPT circulars and High Court cases are also available on the website of
the Iron & Steel sector under the PAT (Perform, Achieve & Trade) Scheme
the Company.
Cycle I of Bureau of Energy Efficiency (BEE), Ministry of Power,
Awareness Programs/Workshops on 'Obligation of Public Authorities under Government of India at New Delhi on National Energy Conservation Day
RTI' are being organised across Plants/Units and Information Commissioner on December 14, 2017 in presence of the Hon'ble President of India.

16
Felicitation of proud recipients of Vishwakarma Rashtriya Puraskar Winners for the year 2015 (awarded in 2017).

Raw Materials Division Adoption of Energy-Efficient Technologies and State-of-the-Art Pollution

st th Control Equipment/Facilities
• Kiriburu Iron Ore Mines received 1 prize during 25 Mines Environment
and Mineral Conservation (ME&MC) week celebration 2018 by Indian Some of the major best available technologies, adopted as steps towards
Bureau of Mines at Ranchi, for its overall commendable performance in implementation of clean technologies as well as latest pollution control facilities
Environment Protection and Sustainability Endeavour. installed during Modernisation and Expansion Plan of the Company are as
follows:
Alloy Steels Plant
• Higher capacity (tall) coke oven batteries equipped with Land based
• Alloy Steels Plant received the Best Performance Vendor 2017 Award Pushing Emission Control System, Coke Dry Cooling Plant, etc. at BSP,
from Ordnance Factory-Medak (OF-M) for indigenisation, development RSP & ISP.
and supply of import substitute steel plates.
• Sinter Plant equipped with improved ignition system (multi-slit burners),
E. ENVIRONMENT MANAGEMENT Waste Heat Recovery facility from sinter cooler, etc. at RSP & ISP.
Within the ambit of notified environmental standards applicable for emission • Blast Furnace of higher capacity equipped with Top Pressure Recovery
and discharge of pollutants into the environment and rules pertaining to eco- Turbine (TRT), Waste Heat Recovery facility, Pulverised Coal Injection,
friendly management of various wastes, being generated inside the Plant Cast House De-dusting System, Cast House Slag Granulation Plant and
Premises as well as in the townships, SAIL Plants and Mines operate their torpedo ladle at BSP, RSP & ISP.
processes without disturbing the ecological balance. Your Company has also
• Phasing out of energy-intensive ingot route across SAIL Plants.
drawn its environmental vision in consonance with the Corporate Environmental
Policy, which not only addresses the need for compliance of stipulated norms • Walking Beam Reheating Furnace (RHF) in place of pusher type RHF at
but also emphasises on striving to go beyond. Besides, your Company is the Rolling Mill in reducing energy consumption as well as CO2 emission
committed to address the stakeholders' concerns and communicate its at all the Plants.
environmental philosophy to all the stake holders. New Initiatives
Improvement in Emissions and Discharges a. Environment friendly disposal of Poly Chlorinated Bi-Phenyls (PCBs) - a
SAIL Plants and Mines are efficiently operating the pollution control devices/ toxic environmental pollutant
facilities and maintaining regularly through revamping/refurbishing/revitalization Bhilai Steel Plant, in partnership with the MoEF&CC and UNIDO, has initiated
and also up-grading them as and when required, for the purpose of complying a project for setting-up a disposal facility for Polychlorinated Biphenyls (PCBs),
with the applicable environmental standards, which are becoming more and categorized as Persistent Organic Pollutants (POPs) at its site. The project is
more stringent day by day. likely to be completed by December, 2018.
The Particulate Matter (PM) emission load (kg/tcs) has reduced by around b. Bio-sequestration of CO2
14% in the last five years. During the expansion cum modernisation programs, For the purpose of reduction of CO2 emission and sequestration of the generated
state of the art technologies along with latest pollution control facilities have carbon back into the system, SAIL is assessing its carbon footprint in one
been installed, as a result of which the pollution level and CO2 emission have hand and potential of sequestration of CO2, through its existing biotic resources,
also come down. on the other. A project on carbon sequestration through afforestation has been
During the last five years, the specific CO2 emission (T/tcs) has been reduced taken up at the site of Rourkela Steel Plant. M/s. Tropical Forest Research
by around 5%. The specific effluent load in the discharged effluent has reduced Institute, Jabalpur, has been engaged as the sequestration partner to carry
by more than 25% in the last five years. out the project in February, 2014. The project will continue till March, 2019.

17
c. Enhancing utilization of wastes through application of 4Rs (Reduction, Mines. This system is also under implementation at the CMO Warehouse at
Reuse, Recycling and Recovery): Kanpur. Further, 13 Warehouses under the Marketing Department have till
date been cer tified to Environment Management System compliant to
With a view to increase utilization of wastes being generated inside Plant
14001:2015.
boundary, in the recent years, some R&D based initiatives like steam maturing
of BOF slag, dry granulation of BOF slag, use of BOF slag as rail track ballast, Sustainable Development Projects
use of BF and BOF slag as substitutes to natural aggregates, use of BF/BOF
Restoration and rehabilitation of degraded ecosystem is essential for
slag in road making have been undertaken in the recent years.
maintaining and enhancing bio-diversity as well as replenishing the eco-system
d. Application of Renewable Energy towards a new era services. Mined out area and water body of mine voids of Purnapani Limestone
Mines have been taken up for ecological restoration in association with Delhi
Your Company has set a target of installation of 200 MW renewable energy
University.
Power Plants by 2019. Some of the major initiatives taken towards
implementation of renewable energy projects are under consideration: Plantation
• 7 MW capacity Solar Power Plant at Bhilai. Your Company realizes the role of plantation in overall environmental
management initiatives. It is a well-known fact that plants play an important
• 20 MW capacity Solar Power Plant at Durgapur.
role in balancing the eco system and function as a carbon sink. Keeping the
• 2 MW capacity roof top Solar Power Plant on the buildings of BSL. enormous contribution of the plants in mind, SAIL has long been adopting
• 20-25 MW capacity Solar Power Plant at Kulti. extensive afforestation program religiously in its Plants and Mines since its
nascent stage. More than 20.1 million saplings have been planted across
• 17 MW capacity roof-top Solar Power Plants on various buildings of SAIL SAIL Plants and Mines till date. Giving special thrust for plantation, more than
including warehouses. 8.27 lakhs of saplings have been planted during 2017-18.
e. A green initiative by Rourkela Steel Plant
F. STRATEGIC INITIATIVES OF THE COMPANY
Rourkela Steel Plant(RSP) has recently taken up a green initiative for using
Your Company has adopted a multi-pronged approach that includes organic
waste plastics in the hot mix of road making. As a pilot project, a stretch of
growth, brown-field projects, technology leadership through strategic alliances,
one km road has been constructed successfully. More roads in RSP and other
ensuring raw material security by developing new mines, diversifying in allied
Plants are planned to be taken up.
areas, etc. In line with the above approach, SAIL has formed Joint Venture
Environmental Management System (EMS) linked with ISO-14001:2015 Companies in different areas viz. power generation, rail wagon manufacturing,
Environmental Management System (EMS) linked to ISO 14001 is a set of slag cement production, securing coking coal supplies from overseas sources,
processes and practices that enable an organization to reduce its environmental etc. New initiatives are currently being explored in areas such as outsourcing
impacts and increase its operating efficiency. Implementation of EMS has of power distribution and educational facilities in SAIL townships, etc. The
helped the Plants and Mines to ensure that their performance being always status of Strategic Initiatives taken by your Company in the recent past includes
within the applicable regulatory requirements. the following:

During the Financial Year 2017-18, implementation of EMS (ISO-14001:2015) In order to meet the challenges of adverse business environment, a Company-
has been taken up at the Gua Ore Mines and the Collieries, since this is a pre- wide turnaround program was initiated during 2016-17. The program was
requisite for implementation of Star Rating System by the Indian Bureau of taken up with an aim to review and sharpen SAIL's business strategies and

Lake garden at Kiriburu mine.

18
Under Make in India, SAIL’s Durgapur Steel Plant despatched the first consignment of metro railway wheels for Kolkata Metro.

processes, build for sustained market leadership and drive the Company steel townships, coal handling plants, traffic systems, loco and wagon repairs
towards profitability. Towards this, your Company engaged M/s. Boston are being evaluated. Actions are also being initiated towards rationalisation of
Consulting Group (BCG), a leading Global Management Consultant, to study contracts and identification of new areas for outsourcing.
the health of the Company, suggest suitable measures for its turnaround and
Development of Rowghat - Jagdalpur Rail Corridor in the State of
provide hand holding support and assistance to SAIL for implementation of
Chhattisgarh: With the aim of bringing about greater socio-economic
approved road map for turn around. The study phase of this program, named
development of the backward areas of Bastar region in Chhattisgarh and to
'SAIL Uday', culminated in October, 2017 with the submission of the
further the industrial progress and mining activities of the region, an MoU was
'Comprehensive Turnaround Roadmap' Report by BCG. The Roadmap contains
signed amongst SAIL, NMDC, IRCON International Ltd. and Government of
over 260 recommendations encompassing various functional areas of the
Chhattisgarh in May 2015 for development of a rail corridor from Rowghat to
Company including Raw Materials, Production, Sales & Marketing, Supply
Jagdalpur. This rail corridor shall be used for both freight and passenger
Chain & Logistics, Manpower & Productivity, etc. Your Company has now
services in the Southern part of Chhattisgarh. A Joint Venture Company under
embarked upon the next phase of "SAIL Uday" program involving
the name "Bastar Railway Private Limited" has been incorporated in May, 2016.
implementation of the recommendations which would contribute towards
Pre project activities are being undertaken by the Joint Venture Company.
achieving the Company's turnaround.
JV with Arcelor Mittal for production of automotive steel: SAIL and Arcelor
Disinvestment of SAIL Plants: On 27th October, 2016, the Government of
Mittal signed an MoU on May 22, 2015 to explore the possibility of setting up
India (GoI) accorded 'in-principle' approval for Strategic Disinvestment of three
an automotive steel manufacturing facility under a Joint Venture (JV), in India.
Units of SAIL viz. Salem Steel Plant (SSP), Salem, Visvesvaraya Iron and
The proposed JV will construct a state-of-the-art cold rolling mill with a capacity
Steel Plant (VISP), Bhadrawati and Alloy Steels Plant (ASP), Durgapur. The
of about 1.5 mtpa and other downstream finishing facilities in India that will
entire process of Strategic Disinvestment is being overseen by an Inter-
offer technologically advanced steel products to India's rapidly growing
Ministerial Group(IMG) constituted by the Ministry of Steel(MoS) and chaired
automotive sector. The input material for the CRM shall be supplied from SAIL's
by the Secretary, Steel.
upcoming Hot Strip Mill located at Rourkela Steel Plant. Thus, it would be a
SAIL Board has accorded 'in-principle' approval for the Strategic Disinvestment completely integrated indigenous supply chain for the Indian Automotive Sector.
of these Steel Plants. To carry out the process, the Company has appointed In this effect, a legally non-binding Term Sheet has been signed by SAIL and
Transaction Advisor(TA), Legal Advisor (LA), Asset Valuer(AV) and Tax cum Arcelor Mittal, which lays down the fundamental principles based on which
Accounting Consultant (TCA). SAIL and AM agree to proceed with formation of the proposed JV Company.
Upon receipt of approval of the GoI/MoS, Preliminary Information Memorandum Closure/Exit from non-operational and non-performing Joint Venture
(PIM)/Expression of Interest request (EoI) for disinvestment of ASP on Companies.
1st February, 2018, Public Notice for inviting EoI for ASP, Durgapur was issued
SAIL has initiated actions for closure/exit from certain Joint Venture Companies
on 14th February, 2018. The EoIs received are under evaluation.
which are either non-operational or non-performing. Further, options to
PIM/EoI Requests for Strategic Disinvestment of VISP and SSP have been monetize SAIL's investment in certain Joint Venture Companies are also being
sent to Ministry of Steel on 2nd May, 2018 and 9th May, 2018 respectively for explored.
obtaining approval of the GoI for issuance of Public Notice inviting EoI for
Strategic Disinvestment. Clearance from GoI is awaited. Business Excellence Initiatives

Outsourcing of the Company operated schools in townships of five Implementation of Management Systems
Integrated Steel Plants. Most of SAIL Plants/Units are certified to ISO 9000, ISO 14000, OHSAS 18000
Outsourcing Policy of SAIL lays down the objectives and framework for and SA 8000 Management Systems. BSP was the latest addition to DSP and
outsourcing of non-core activities. Based on the overall framework provided BSL which have implemented ISO 50000 (Energy Management System). BSP
by the Outsourcing Policy, options for outsourcing of non-core activities like achieved ISO 27000 (Information Security System) certification also which
maintenance of townships, Company owned schools, power distribution in was earlier achieved by DSP, BSL and RDCIS.

19
Certifications achieved during 2017-18: To ensure data protection and security, steps have been taken at all Plants/
• BSP achieved ISO 50000 EnMS and ISO : 27000 ISMS certification. Units for Information Security Management System (ISMS):ISO certification.
• ISP- Wire Rod Mill, Universal Section Mill, Bar Mill, Raw Material Handling Your Company has upgraded to High Definition Video Conference System,
Plant and Sinter Plant certified to ISO 9000 QMS. which is used extensively and it has facilitated strategic planning and decision
• RSP - Entire Plant certified as per SA 8000: 2014 version. making and also has proved to be cost effective and time saving.
• DSP - Medium Structural Mill certified to ISO 9000 QMS.
Corporate Communication
IT Related Initiative
Your Company recognizing the need to evolve new and innovative ways to
Your Company has embarked upon various Information Technology (IT) engage with its employees has conducted a series of large group interactions
initiatives within the organization for enabling SAIL's competitiveness in the at its Plants and Units, wherein the top management comprising Chairman
market place. and Directors of the Company, held two-way communication with employees,
Your Company is implementing and expanding the coverage of its business apprising them of the challenges before the Company and encouraging them
operations under the sphere of Enterprise Resource Planning (ERP). Four towards better performance. Apart from this, the Company following a
Integrated Steel Plants at Bhilai, Durgapur, Bokaro and Rourkela and Central comprehensive approach in its communication initiatives engaged in internal
Marketing Organization (CMO) have already implemented ERP and have been communication utilizing the mediums of the management's New Year message,
benefitted by this. ERP implementation at IISCO Steel Plant and at Corporate Intranet, Newsletters, etc. SAIL's intranet enables employees to catch up on
Office is under progress. all important and valuable information pertaining to the Company, provides
interactive forums to partake in various competitions/quizzes and let them
SAIL has also implemented Supplier Relation Management (SRM)/e- share their feedback on various issues. SAIL News-our internal newsletter,
Procurement. This has resulted in greater transparency and better market reach. with its informative, motivational, employee and product focused content, not
The online customer enquiry systems and CRM are providing better interface only effectively communicates but also fosters a sense of pride in the
between customers and manufacturing processes, thereby transcending employees for the Company.
customer experience.
In order to build your Company's brand image, promote its products and their
Manufacturing Execution Systems (MES) have benefitted your Company in applications, highlight its role in nation building, Make in India drive and to
achieving the market expectations by making the production and the associated effectively communicate with external stakeholders, your Company participates
processes cost, quality and delivery efficient. in events and exhibitions, releases advertisements, maintains its website and
Goods and Services Tax (GST) has been implemented across SAIL and IT presence on social media, sponsors various events, etc.
applications have been made GST compliant. The process for filing GST returns Your Company participated in a number of domestic exhibitions and fairs
has been automated through Application Service Provider (ASP) & GST Suvidha throughout the year including Vision Jammu & Kashmir 2018, International
Provider (GSP). Engineering Sourcing Show 2018 (Chennai), Emerging North East 2018 held
In pursuit of implementing 'Digital India Initiative' of the Government of India, at Guwahati, Assam, exhibitions in Jaipur, Visakhapatnam), etc. SAIL has also
paperless office approach is being adopted by resorting to automated e- been successfully participating in India International Trade Fair, regularly for
communications through sms/e-mail and usage of various mobile applications over two decades. The 'SAIL Lion'-a figurine specially crafted out of SAIL
in business/employee welfare areas. Further, cashless transactions have been Salem Stainless steel showcasing different products and applications of steel,
implemented, wherein almost all payments and receipts are being done through was a major draw at IITF-2017. Your Company also took part in major
cashless digital mode, thereby, your Company has ensured full compliance of international exhibitions namely INDEE (Indian Engineering Exposition)
Government of India's Guidelines with regard to 'Promotion of Payments by Bangladesh, MSV International Engineering Fair (Czech Republic), India
Digital Means'. Measures are also being taken to maximize usage of e- Sourcing Fair 2018 (Russia) and Hanover Messe 2018 in Germany. In addition,
Procurement and e-Tendering in the Company. the Company has sponsored a number of sports, cultural and educational

Felicitation Ceremony of Prime Minister Shram Awardees for the year 2011 to 2016 (awarded in 2018).

20
events that provided extensive visibility for SAIL. • SAIL Vigilance team received an Excellence Award for the BEST CASE
STUDY from Central Vigilance Commission (CVC) during the XIV
Your Company has created visually appealing, crisp, trendy and emotional
anniversary celebrations of Vigilance Study Circle, Hyderabad held on
connect generating advertisements which were successful in conveying the
14th July 2017.
meaning of 'Brand SAIL' to society at large while commemorating SAIL's 60th
year of production. They provided visibility to your Company across different SAIL Vigilance also received two VIGILANCE EXCELLENCE AWARDs, one
formats such as print, electronic, online, mobile, etc. SAIL advertisements each for 'Vigilance Innovation' and 'Excellence in Investigation' from the
with rural focus support the organization's rural marketing initiatives. SAIL Hon'ble Vice President of India in the inaugural function of Vigilance
website serves as an important source of information to our investors and Awareness Week organized by CVC on 30th October 2017 at Vigyan
other important stakeholders. Your Company has also created a number of Bhawan, New Delhi.
films on a diverse range of subjects including steel making, safety, swachhta,
• 'Inspiration- Prerna', an in-house publication of SAIL Vigilance is being
vigilance, steel applications, environment conservation initiatives, etc., which
published regularly. The above publication contains case studies, articles
have been showcased nationally and internationally at various events.
from eminent personalities, quiz on policy matters, etc. to enhance
G. VIGILANCE ACTIVITIES awareness of the readers.

The objective of SAIL Vigilance is to facilitate an environment enabling people • Summary of processing of vigilance cases during 2017-18 is as under:
to work with integrity, efficiency and in a transparent manner, upholding highest Source Complaints
ethical standards for the organization. To achieve this objective, the Vigilance
Received Disposed
Department carries out preventive, proactive and punitive actions with greater
emphasis in the preventive and proactive functions. Following activities were CVC 5 5
undertaken during the Financial Year 2017-18: MoS 39 34
• To increase vigilance awareness amongst employees, vigilance awareness Direct 732 704
sessions and workshops were regularly held at various Plants and Units
Total 776 743
of the Company. A total of 145 workshops involving 2838 participants
were organized for enhancing Vigilance Awareness on Whistle Blower
Type of Complaints disposed:
Policy, Purchase/Contract Procedures, RTI Act, Conduct & Discipline
Rules, System and Procedures followed in SAIL, etc. Closed as found anonymous / pseudonymous 207
• Periodic surprise checks including Joint Checks were conducted regularly (filed in line with CVC guidelines)
in vulnerable areas of the Company. A total of 2490 periodic checks
including file scrutiny and Joint Checks were conducted at different Plants / Closed as no vigilance angle / allegations 398
Units. A saving of approx. `18.45 crores accrued from the preventive not substantiated
vigilance activities mainly on account of these surprise checks.
Closed with preventive/administrative 122
• Vigilance provides vital inputs to the operating authorities for improving Recommendations
the prevailing systems for bringing about more transparency. Accordingly,
eight major System Improvement Projects (SIPs) were undertaken at Regular Departmental Actions initiated 16
different Plants/Units of SAIL. (6 cases of major penalty
against 7 employees and
• 13 cases were taken up for Intensive Examination at different Plants /
10 cases of Minor Penalty
Units. During these Intensive Examinations, high value procurement /
against 16 employees)
contracts are scrutinized comprehensively and necessar y
recommendations are forwarded to concerned depar tments for Total Disposed 743
implementing suggestions for improvement.
• As per the Guidelines of Central Vigilance Commission, Vigilance Vigil Mechanism
Awareness Week was observed in SAIL during 30th October to 4th The Company has adopted Vigil Mechanism for conducting the affairs in a fair
November, 2017. The week started with administrating the Integrity pledge and transparent manner by adopting highest standards of professionalism,
and reading out of messages of dignitaries on 30th October 2017 at SAIL honesty, integrity and ethical behaviour. All employees of the Company and
Corporate Office as well as all Plants/Units of SAIL. During the week, Directors on the Board of the Company are covered under this Mechanism.
Workshops/ sensitization programmes, talks by eminent speakers like This Mechanism has been established for employees to report concerns about
Ex-Secretary, Government of India, SP, CBI, etc., Customers meet, Anti- unethical behaviour, actual or suspected fraud or violation of Code of Conduct.
corruption March / Walkathon involving common people, events like quiz, It also provides for adequate safeguards against the victimization of employees
essay, slogan & drawing/ poster, debate competition were organized for who avail of the Mechanism and allows direct access to the Chairperson of
the employees and their families. The activities conducted during the the Audit Committee in exceptional cases.
week were posted on social media like twitter handle and facebook account
of SAIL for wider publicity. During the week, employees, their families, MANAGEMENT DISCUSSION AND ANALYSIS REPORT
students, customers, vendors, etc. were encouraged to take E-pledge. As per the SEBI(Listing Obligations and Disclosure Requirements) Regulations,
• The following four (4) thrust areas were identified by SAIL Vigilance: 2015, Management Discussion and Analysis Report covering the performance
and outlook of the Company is attached and forms part of this Report.
i) Surveillance in the areas of receipt, sampling & testing of high value
raw materials. AUDITORS' REPORT

ii) Use of analytics from Business Intelligence (BI)/ERP Central The Statutory Auditors' Report on the Accounts of the Company for the Financial
Component (ECC) Module while identifying areas of scrutiny of files Year ended 31st march, 2018 along with Management's replies thereon is
and surprise checks at Bhilai, Bokaro, Rourkela, Durgapur and Central placed at Annexure-I to this Report. The Comptroller & Auditor General of
Marketing Organization. India (C&AG) vide its letter dated 31st July, 2018 has given "Nil" comments on
the Standalone Financial Statements of the Company for the Financial Year
iii) Scrutiny of projects w.r.t change orders. ended 31st March, 2018 under Section 143(6)(a) of the Companies Act, 2013.
iv) Scrutiny of Audit Reports. A copy of the above letter of C&AG is placed at Annexure-II to this Report.

21
COST AUDITORS achieve, hence the Board of Directors of your Company has decided to close
SAIL Jagadishpur Power Plant Limited and SAIL Sindri Projects Limited. Further
Pursuant to the direction of the Central Government for Audit of Cost Accounts,
actions for closure of these Companies are being taken. Chhattisgarh Mega
the Company has appointed M/s. Sanjay Gupta & Associates, New Delhi,
Steel Limited which was incorporated as a Special Purpose Vehicle for setting
M/s. Shome & Banerjee, Kolkata and M/s. R.J. Goel & Co., New Delhi as Cost
up of an Ultra Mega Steel Plant of 6 Million Tonnes per annum as a green field
Auditor(s) for the Financial Year 2017-18.
steel project under Joint Venture is yet to commence operation.
SECRETARIAL AUDITOR'S REPORT
The Annual Accounts of the subsidiary Companies and related detailed
In terms of the provisions of Section 204 of the Companies Act, 2013, the information shall be made available to the Shareholders of the holding and
Board of Directors has appointed M/s. Agarwal S. & Associates, Company subsidiary companies, seeking such information at any point of time. Further,
Secretaries, as the Secretarial Auditor to conduct Secretarial Audit of the the Annual Accounts of the subsidiary companies are available for inspection
Company for the Financial Year ended on 31st March, 2018. Secretarial Audit by any Shareholder in the Registered Office of the Company and the Subsidiary
Report is placed at Annexure-III to this Report. Companies concerned between 11 AM to 1 PM on working days. A hard copy
With regard to the observation of the Secretarial Auditor, that composition of of the details of accounts of subsidiaries shall be furnished to the shareholders
the Board of Directors of the Company was not as per requirements during on receipt of written request.
a part of the Financial Year 2017-18, it is stated that appointment of Independent CONSOLIDATED FINANCIAL STATEMENTS
Directors on the Board of the Company is made by the Company based on
nomination by Government of India. The Company has requested Ministry of Pursuant to provisions of Section 129(3) of the Companies Act, 2013, the
Steel, Government of India for nomination of requisite number of Independent duly Audited Consolidated Financial Statements are placed at Annexure-V to
Directors on its Board. this Report. The Statutory Auditors' Report on the Consolidated Financial
Statements along with the Management's replies thereon is placed at
In respect of observation regarding performance evaluation of the Directors
Annexure-VI to this Report. The Comptroller & Auditor General of India (C&AG)
not being carried out pursuant to the Regulation 17(10) & 25(4) of Securities
vide its letter dated 31st July, 2018 has given "Nil" comments on the
Exchange Board of India (Listing Obligations and Disclosure Requirements)
Consolidated Financial Statements of the Company for the Financial Year
Regulations, 2015, it is mentioned that Ministry of Corporate Affairs has vide
ended 31st March, 2018 under Section 143(6)(a) read with Section 129(4) of
its Notification dated 5th June, 2015 notified the exemptions to Government
the Companies Act, 2013. A copy of the above letter of C&AG is placed at
Companies from the provisions of the Companies Act, 2013 which, inter-alia,
Annexure-VII to this Report. Further, the statement containing salient features
provides that Sub Sections (2), (3) & (4) of Section 178 regarding appointment,
of the financial statements of the subsidiary, joint venture and associate
performance evaluation and remuneration shall not apply to Directors of the
companies in the prescribed Form AOC-1 is placed at Annexure-VIII to this
Government Companies. Further, the Ministry of Corporate Affairs vide
Report.
Notification dated 5th July, 2017 has notified certain amendments in Schedule
IV of the Companies Act, 2013 relating to Code for Independent Directors. As EXTRACT OF ANNUAL RETURN
per the Notification, in Schedule IV, the clauses relating to evaluation of The Extract of Annual Return in Form MGT-9 as per the provisions of the
performance of Non-Independent Directors, Chairperson and Board have been Companies Act, 2013 and Rules prescribed therein is placed at Annexure-IX
exempted for Government Companies. to this Report.
CORPORATE GOVERNANCE
BOARD MEETINGS
In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, the Corporate Governance Repor t and Auditors' Cer tificate on During the year, 11 meetings of the Board of Directors of the Company were
compliance of conditions of Corporate Governance is placed at Annexure-IV held, the details of which are given in the Corporate Governance Report.
to this Report.
AUDIT COMMITTEE
In terms of the SEBI Regulations, the Board has laid down a Code of Conduct
The Audit Committee of the Board was initially formed by the Company in
for all Board Members and Senior Management of the Company. The Code of
1998. The Audit Committee has been reconstituted from time to time in terms
Conduct has been posted on the website of the Company. All the Board
of the SEBI Regulations and Companies Act, 1956/2013. The minutes of the
Members and Senior Management Personnel have affirmed compliance with
Audit Committee meetings are circulated to the Board, discussed, and taken
the Code.
note of. The composition and other details pertaining to the Audit Committee
BUSINESS RESPONSIBILITY REPORT are given in the Corporate Governance Report.
As per Regulation 34(2)(f) of the SEBI(Listing Obligations and Disclosure INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY
Requirements) Regulations, 2015, the Business Responsibility Repor t
describing the initiatives taken by the Company from Environmental, Social The Company has well established and documented policies and procedures
and Governance perspective forms part of this Annual Report. for ensuring the orderly and efficient conduct of business, including adherence
to various policies and procedures for safeguarding its assets, prevention and
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES detection of frauds and errors, accuracy and completeness of the accounting
IISCO-Ujjain Pipe and Foundry Company Limited, a wholly owned subsidiary records and timely preparation of reliable financial disclosures. Further, the
of the erstwhile Indian Iron and Steel Company Limited (IISCO), was ordered Company has adopted a corporate governance structure, various management
to be wound up by BIFR. The Official Liquidator is continuing its liquidation processes, controls, policies and guidelines that drive the organization towards
process. its business objective, while also satisfying various stakeholders' needs.
Your Company has four other subsidiary Companies namely, SAIL Refractory Some of your Company's robust protocols such as independent internal audit,
Company Limited (SRCL), SAIL Jagdishpur Power Plant Limited, SAIL Sindri well drafted and documented policies, guidelines, procedures, regular review
Projects Limited and Chhattisgarh Mega Steel Limited. SRCL is operating the by Audit Committee / Board, etc. helps in compliance of Internal Financial
Salem Refractory Unit which was acquired by SAIL from Burn Standard Controls under the Companies Act, 2013, SEBI (LODR) Regulations, 2015,
Company Limited on 16th December, 2011. SAIL Jagdishpur Power Plant etc. Your Company is committed to the highest standards of Corporate
Limited, incorporated for setting up of Gas based power Plant at Jagdishpur Governance where the Board is accountable to all stakeholders for reporting
and SAIL Sindri Projects Limited, incorporated for revival of Sindri Unit of effectiveness of Internal Financial Control (IFC) and its adequacy. Corporate
Fertilizer Corporation of India Limited have not taken off. Under present situation, Governance has been carried out in accordance with the Companies Act,
the objectives with which these Companies were incorporated are difficult to 2013 and SEBI (LODR) Regulations, 2015, etc.

22
DIRECTORS' RESPONSIBILITY STATEMENT the Board much before the same became a statutory requirement and since
Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors then, the risk management in SAIL has grown and developed in line with internal
state that: and external requirements. The Policy provides guidance for the management
of the business risks across the organisation. It focuses on ensuring that the
(i) in the preparation of the Annual Accounts, the applicable Accounting risks are identified, evaluated and mitigated within a given time frame on a
Standards have been followed along with proper explanation relating to regular basis.
material departures;
Currently, the architecture of Enterprise Risk Management in SAIL comprises
(ii) the Directors have selected such Accounting Policies and applied them a well-designed multi-layered organization structure, with each Plant/Unit
consistently and made judgments and estimates that are reasonable and having its own perceived Risks which are under the constant monitoring by
prudent so as to give a true and fair view of the state of affairs of the the Risk Owners / Risk Champions who frame and implement the mitigation
Company at the end of the Financial Year and of the profit or loss of the strategy and take it to its logical conclusion. Risk Management Committee of
Company for that period; the Plant/Unit Chaired by the Head of the Plant /Unit periodically reviews the
(iii) the Directors have taken proper and sufficient care for the maintenance risks and their mitigation status and reports the same to Chief Risk Officer
of adequate Accounting Records in accordance with the provisions of (CRO) of SAIL. SAIL Risk Management Committee (SRMC) oversees the Risk
the Act for safeguarding the assets of the Company and for preventing Management function in the Company by addressing issues pertaining to the
and detecting fraud and other irregularities; policy formulation as well as evaluation of risk management function to assess
its continuing effectiveness. Risks identified by the Risk Champion/Risk Officer
(iv) the Directors have prepared the Annual Accounts on a Going-Concern
are deliberated in the Risk Management Committee, escalated and draw the
basis;
mitigation strategy. Roles and responsibility of Board, Audit Committee, SAIL
(v) the Directors have laid down internal financial control to be followed by Risk Management Committee, Risk Management Steering Committee, CRO,
the Company and that such internal financial controls are adequate and Risk Officer/Risk Champion related to risk management are defined under the
are operating effectively; and Policy and duly approved by the Board.
(vi) the Directors have devised proper systems to ensure compliance with M/s. Grant Thornton India LLP has been appointed to review and update the
the provisions of all applicable laws and that such systems are adequate existing ERM Policy in SAIL to meet the statutory requirements of Companies
and operating effectively. Act, 2013 and SEBI Regulations.
INDEPENDENT DIRECTORS' DECLARATION CORPORATE SOCIAL RESPONSIBILITY (CSR)
In terms of section 149(7) of the Companies Act, 2013, necessary declaration SAIL's Social Objective is synonymous with Corporate Social Responsibility.
has been given by each Independent Director stating that he/she meets the Apart from the business of manufacturing steel, the objective of the Company
criteria of independence as provided in sub-section (6) of Section 149 of the is to conduct business in ways that produce social, environmental and
Companies Act, 2013. economic benefits to the communities in which it operates. For any
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER organization, CSR begins by being aware of the impact of its business on
SECTION 186 society. With the underlying philosophy and a credo to make a meaningful
difference in people's lives, your Company has been structuring and
In terms of the provisions of Section 186 of the Companies Act, 2013 read
implementing CSR initiatives right from the inception. These efforts have seen
with Companies (Meetings of Board and its Powers) Rules, 2014, the details
the obscure villages, where SAIL Plants are located, turn into large industrial
of Loans, Guarantees, Investments given during the Financial Year ended on
hubs today.
31st March, 2018 are given in Annexure-X to this Report.
The CSR initiatives of your Company have always been under taken in
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED
conformity to the Companies Act-2013, Companies (Corporate Social
PARTIES REFERRED TO IN SUB-SECTION (1) OF SECTION 188
Responsibility Policy) Rules, 2014 and CSR Policy. SAIL carries out CSR
All the contracts / arrangements / transactions entered by the Company during projects in and around periphery of steel townships, mines and far flung location
the Financial Year 2017-18, with the related parties were in the ordinary course across the Country in the thrust areas falling in line with Schedule-VII of the
of business and on an arm's length basis. The transactions with the related Companies Act-2013, namely, education, medical and health care facilities,
parties have been disclosed in the financial statements. Therefore, particulars village development, access to water facilities, infrastructural development in
of contracts or arrangements with related parties referred to in Section 188(1) peripheral rural areas, environment conservation, women empowerment,
along with the justification for entering into such contract or arrangement in assistance to people with disabilities, sustainable income generation through
Form AOC-2 do not form part of the Report. self-help groups, promotion of sports, art, culture & heritage conservation,
DIVIDEND DISTRIBUTION POLICY etc.
In terms of the Regulation 43A of SEBI (Listing Obligations and Disclosure The details of various CSR initiatives taken by the Company along with the
Requirements) Regulations, 2015, the Board of Directors of the Company has Report on CSR in prescribed format are placed at Annexure XII to this Report.
adopted Dividend Distribution Policy which is uploaded on the website of the The CSR Policy of the Company is available on the website of the Company-
Company - https://sail.co.in/sites/default/files/Dividend_Distribution_ www.sail.co.in.
Policy_2017.pdf Healthcare: SAIL's extensive and specialised healthcare infrastructure provided
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN specialized and basic healthcare to 1.70 crore people living in the vicinity of
EXCHANGE EARNINGS AND OUTGO its Plants and Units during the period 2011-18. In order to deliver quality
healthcare at the doorsteps of the needy, regular health camps in various
In accordance with the provisions of Section 134(3)(m) of the Companies villages on fixed days are being organized for the people living in the periphery
Act, 2013 read with Rule 8 of the Companies(Accounts) Rules, 2014, the of Plants/Units, Mines and far-flung areas. During the Financial Year 2017-18,
particulars relating to Conservation of Energy, Technology Absorption and about 4,130 Health Camps have been organized benefitting over 76,000
Foreign Exchange Earnings and Outgo are given in Annexure-XI to this Report. villagers. 7 Mobile Medical Units (MMUs) running in the Plant's peripheries
RISK MANAGEMENT POLICY have benefitted 44,000 villagers at their doorsteps.
Enterprise Risk Management (ERM) is a strategic business discipline that 27 Primary Health centres at Plants exclusively provided free medical care
supports the organization's objectives by addressing full spectrum of its risks and medicines to 3.43 lakh villagers during the Financial Year 2017-18.
and managing the combined impact of those risks as an inter-related risk Education: To develop the society through education, SAIL is supporting over
portfolio. The Risk Management Policy of your Company was approved by 77 schools which are providing modern education to more than 40,000 children

23
in the steel townships. 19 Special Schools (Kalyan & Mukul Vidyalayas) are food, cricket coach and sports kits/tools and training/practice sessions, etc.
benefitting over 4,270 BPL category students at integrated steel plant locations Today, the Champions are representing Odisha & Jharkhand States in National,
with facilities of free education, mid-day meals, uniform including shoes, text State and District level cricket tournaments, wherein, their performance has
books, stationary items, school bag, water bottles and transportation. been adjudged as 'Women of the Tournament', etc.
Your Company in association with Akshya Patra Foundation is providing mid- SAIL has converged its CSR endeavours by developing sustainable tap water
day meals to 68,000 students of over 630 Government schools in Bhilai and source and constructing useable toilets for each of the 1854 households in
Rourkela. 19 villages of Kuarmunda Block, Rourkela in a comprehensive manner. Village
Women Empowerment & Sustainable Income Generation: Vocational and level committees have been formed for long-term sustenance of the project.
specialised skill development training targeted towards sustainable income Bolani Ore Mine is facilitating drinking water supply and sanitation facility for
generation have been provided to 600 youths and 1,468 women of peripheral 300 natives of Barik Sahi (Kuni Sahi), Bolani connecting the village with
villages in areas such as Nursing, Physiotherapy, LMV Driving, Computers, Jhinkaria Springs through G.I. pipelines.
Mobile repairing, Welder, Fitter & Electrician Training, Improved Agriculture,
Mushroom Cultivation, Goatery, Poultry, Fishery, Piggery, Achar/Pappad/ GENERAL DISCLOSURES
Agarbati/Candle Making, Screen Printing, Handicrafts, Sericulture, Yarn i. During the year, the Company has not accepted any deposits under the
Weaving, Tailoring, Sewing & Embroidery, Gloves, Spices, Towels, Gunny- Companies Act, 2013.
bags, Low-cost-Sanitary Napkins, Sweet Box, Soap, Smokeless Chullah
making, etc. 845 youths have been sponsored for ITI Training at ITCs Bolani, ii. No significant or material orders were passed by the Regulators or Courts
Bargaon, Baliapur, Bokaro Pvt. ITI and Rourkela, etc. and 31 youths in Plastic or Tribunals impacting the going concern status and Company's operations
Engineering through CIPET at Bokaro. in future. However, attention of Members is drawn to the statement on
contingent liabilities in notes forming part of the Financial Statements.
Connectivity & Water facilities in Rural Areas: Over 79.03 lakh people across
450 villages have been connected to mainstream by SAIL since its inception DIRECTORS AND KEY MANAGERIAL PERSONNEL
by constructing and repairing of roads. Over 8,100 water sources have been
installed during last five years, thereby enabling easy access to drinking water • Dr. N. Mohapatra has ceased to be Director w.e.f. 30th June, 2017(A/N).
to 50 lakh people living in far-flung areas. • CA K.S. Chauhan and Prof. N.K. Taneja have been appointed as
Environment Conservation: Over 3 lakh trees have been planted and Independent Directors w.e.f. 22nd September, 2017.
maintained at Bhilai, Bokaro, Rourkela & Mines areas. A 409 acres Bio-Diversity • Shri P.K. Dash has resigned from the Board w.e.f. 3rd October, 2017(A/N).
Environment Theme Park 'VASUNDHARA' with a water body and plantation of • Shri Sunil Barthwal has ceased to be Director w.e.f. 11th October, 2017.
400 varieties of trees, medicinal plants, rainwater harvesting, soil conservation
for maintaining ecological balance has been developed at Durgapur. The park • Ms. Urvilla Khati was Director from 11th October, 2017 to 28th February,
is enriching the environment for approx. 75,000 natives year on year. 2018.

Support to Differently Abled & Senior Citizens: Differently abled children/ • Shri Kalyan Maity has resigned from the Board w.e.f. 28th February,
people are being supported through provision of equipments like- tricycle, 2018(A/N).
motorized vehicles, calipers, hearing aids, artificial limbs, etc. Your Company • Shri Atul Srivastava has been appointed as Director w.e.f. 12th March,
supports various schemes and centres at Plants under CSR like "Sneh 2018 (A/N).
Sampada", "Prayas"and 'Muskaan" at Bhilai, "Schools for blind, deaf & mentally • Shri Puneet Kansal, Joint Secretary to the Govt. of India, Ministry of Steel
challenged children" and “Home and Hope" at Rourkela, "Ashalata Viklang has been appointed as Director w.e.f. 7th May, 2018.
Kendra" at Bokaro, various programs like "Handicapped Oriented Education
Program" (Hope) and "Durgapur Handicapped Happy Home" at Durgapur, • Shri P.K. Singh has ceased to be Chairman and Managing Director of the
and "Cheshire Home" at Burnpur. Support has also been provided to NGOs Company w.e.f. 30th June, 2018(A/N).
working in this field like TAMANNA, Deepalaya, etc. Old age homes are being • Shri Saraswati Prasad, Special Secretary & Financial Adviser to the
supported at different Plant townships like "Siyan Sadan" at Bhilai, Acharya Government of India, Ministry of Steel assumed Additional Charge as
Dham and Badshah at Durgapur, etc. Chairman and Managing Director of the Company w.e.f. 1st July, 2018
Sports, Art & Culture and Heritage Conservation: SAIL is regularly organizing (F/N).
inter-village sports tournaments, extending support to major national sports • Shri Raman has ceased to be Director w.e.f. 31st July, 2018(A/N).
events & tournaments. Also, supporting and coaching aspiring sportsmen
• Shri Harinand Rai has been appointed as Director w.e.f. 1st August, 2018
and women through its residential sports academies at Bokaro (Football),
(F/N).
and Rourkela (Hockey)- with world class astro-turf ground, Bhilai (Atheletics
for boys), Durgapur (Athletics for girls) and Kiriburu, Jharkhand (Archery). ACKNOWLEDGEMENT
Cultural events like Chhattisgarh Lok Kala Mahotsav and Gramin Lokotsav are
organised every year. The Board of Directors wish to place on record their appreciation for the support
and value contributed by every member of the SAIL family. The Directors are
Disaster Relief: Your Company, as a responsible corporate citizen, supported thankful to the State Governments, Electricity Boards, Railways, Banks,
the rehabilitation initiatives for the people affected by Natural Calamities, such Suppliers, Customers and Investors for their continued co-operation. The
as floods in Jammu & Kashmir, Phylin cyclone in Odisha, Flash Floods in Directors also wish to acknowledge the continued support and guidance
Uttarakhand, etc. in the past. received from the different wings of the Government of India, particularly from
Saranda Forest Development: In an effort to bring the marginalized masses the Ministry of Steel.
to the mainstream of development, SAIL initially established an Integrated
Development Centre (with 26 shops/offices) at Digha village. At the hostel For and on behalf of the Board of Directors
facility setup viz. Saranda Suvan Chhatravas, 24 Tribal children have been
adopted and accommodated and facilitated with free of cost education,
accommodation, meals & uniforms, textbooks, etc. An Ambulance/MMU is
running and providing healthcare at doorsteps of villagers in Saranda Forest. (Saraswati Prasad)
Ladies Cricket Coaching Club, Bolani has been set up by RMD. About 30 Chairman & Managing Director
young tribal ladies who were daily wage-earners as 'load-lifters', devoid of Place: New Delhi
basic amenities, have been motivated, counselled, provided free of cost healthy Dated: 13th August, 2018

24
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management of Steel Authority of India Limited (SAIL) presents its Analysis nation, increased its annual Crude Steel Output by 6.2% to reach 101.4 MT in
Report covering the performance and outlook of the Company. 2017. Japan produced 104.7 MT of Crude Steel in 2017, a marginal decline
by 0.1% compared to 2016. South Korea's Output of Crude Steel stood at
A. INDUSTRY STRUCTURE & DEVELOPMENTS 71.0 MT in 2017 at a growth of 3.5%. Crude Steel Production in the US in
World Economic Environment 2017 stood at 81.6 MT, up by 3.9% over 2016. The EU (28) also saw growth
Global economic output grew by 3.8% in 2017, as estimated by IMF in its in Crude Steel output by 3.9% to reach 168.4 MT in 2017.
April, 2018, World Economic Outlook update. The growth momentum increased Top 10 Steel Producing Countries
in 2017, with growth in advanced economies (estimated 2.3% growth in 2017)
as well as in emerging market and developing economies (estimated 4.8% Rank Country 2017 (MT) 2016 (MT) % Change
growth in 2017).
1 China 831.7 807.6 3.0%
The strong growth momentum is expected to continue in 2018 and 2019,
driven mainly by growth in advanced economies, expectation of favourable 2 Japan 104.7 104.8 -0.1%
financial conditions and acceleration in demand. Growth in emerging market
and developing economies is also expected to strengthen further. Global 3 India 101.4 95.5 6.2%
economic activity is forecast to grow by 3.9% in 2018 as well as 4 United States 81.6 78.5 3.9%
2019.Overview of World Economic Outlook Projections is as under:
World Economic Outlook Projections 5 Russia 71.3 70.5 1.1%
(Percentage Change)
6 South Korea 71.0 68.6 3.5%
Year Over Year
7 Germany 43.4 42.1 3.1%
Estimate Projections
2016 2017 2018 2019 8 Turkey 37.5 33.2 13.0%

World Output 3.2 3.8 3.9 3.9 9 Brazil 34.4 31.3 9.9%

Advanced Economies 1.7 2.3 2.5 2.2 10 Italy 24.1 23.4 3.0%

United States 1.5 2.3 2.9 2.7 World Steel Association has forecast that global steel demand will increase
by 1.8% in 2018 and reach 1616.1 MT, compared to an estimated demand of
Euro Area 1.8 2.3 2.4 2.0 1587.4 MT in 2017. Steel demand in China is expected to remain stable in
Japan 0.9 1.7 1.2 0.9 2018 at 736.8 MT. In the emerging and developing economies excluding China,
steel demand is forecast to grow by 4.9% in 2018.
Emerging Market and 4.4 4.8 4.9 5.1 Indian Economic Environment
Developing Economies
GDP growth for the year 2017-18 has been estimated at 6.7% at constant
China 6.7 6.9 6.6 6.4 market prices as per the provisional estimates of annual national income by
the Central Statistics Office (CSO), compared to 7.1% in 2016-17. The advance
India 7.1 6.7 7.4 7.8 estimates have pegged agriculture and allied sectors growth at 3.4%, industry
sector at 5.5% and services sector at 7.9% for 2017-18. The estimated GDP
Brazil -3.5 1.0 2.3 2.5
growth rate during Q-4 of Financial Year 2017-18 was 7.7% compared to
Russia -0.2 1.5 1.7 1.5 6.1% in the corresponding quarter of the previous year, with growth in
agriculture (4.5%), manufacturing (9.1%) and construction sectors(11.5%)
Source: IMF World Economic Outlook Update, April 2018
contributing to overall growth in Q-4 of Financial Year 2017-18.
World Steel Scenario
In 2017, Global Crude Steel production increased by 3.8% to reach 1689.4
million tonnes (MT) compared to 2016. All major steel production regions
registered an increase in Crude Steel output, except Japan where output
decreased marginally.
Asia accounted for 1152.2 MT of Crude Steel production in 2017, up by 3.5%
vis-à-vis 2016. China continued to dominate World Crude Steel production
with an output of 831.7 MT, at a growth of 3.0% over 2016. In 2017, China
decreased its share of Global Crude Steel Production to 49.2% compared to
49.6% in 2016. India, which is currently the world's third largest steel producing

(RE: Revised Estimates, AE: Advance Estimates)

The Index of Industrial Production(IIP) growth during 2017-18 is estimated at

4.3% compared to 4.6% growth during same period last year. IIP growth rates
for mining, manufacturing and electricity sectors for 2017-18 are at 2.3%,
4.5% and 5.4% respectively. In the same period, while consumer durables
registered a modest growth of 0.7%, consumer non-durables registered a
growth of 10.4%. Capital goods and Infrastructure/Construction goods
registered growth of 3.9% and 5.6% respectively.

25
Fiscal deficit for the Financial Year 2017-18, as per revised estimates (RE) lapsed for not filing the necessary application for saving the Lease as
stood at 3.5% of GDP. The budget estimate of fiscal deficit for 2018-19 has provided under Rule 28(2) of the erstwhile MCR, 1960. The Company
been set at 3.3% of GDP. has submitted its reply to the said Show Cause notice on 15th July, 2017
and also attended a personal hearing in the matter on 22nd July, 2017.
Indian Steel Scenario Final Order of the State Govt. in this regard is still awaited.
According to Word Steel Association, India produced 101.4 MT of Crude Steel • In view of revised Guidelines dated 1st April, 2015, issued by the Ministry
during calendar year 2017, up by 6.2% over 2016. As per Joint Plant Committee of Environment, Forest and Climate Change (MoEFCC), Government of
(JPC), production of Crude Steel during Financial Year 2017-18 stood at 102.3 India, there is a requirement of payment of NPV (about `1,100 crore) for
MT, at a growth of 4.5% over same period last year. Finished steel production entire forest land within mining lease area by 30th March, 2017. SAIL,
(non alloy+alloy/stainless) also registered a growth of 3.1% to reach 105 MT being a Government Company, the matter has been taken up with MoEFCC
during Financial Year 2017-18, compared to same period last year. Exports of for exemption of payment of NPV under the referred Guidelines. As the
total finished steel increased by 16.7% to 9.6 MT during Financial Year clarification in this regard was not provided by MoEFCC, therefore, to
2017-18 over last year, while impor ts increased by 3.5% to avoid closure of SAIL mines in Jharkhand on account of non payment of
7.5 MT. NPV, the Company had approached Hon'ble Jharkhand High Court for
Consumption of total finished steel in India stood at 90.7 MT in Financial Year relief and Hon'ble Court in its interim Order directed not to take any coercive
2017-18, up by 7.9% over same period of last year. Demand for finished steel action against SAIL. Further, Hon'ble High Court in its Judgment dated
in India is expected to grow at 5.5% in 2018, as projected by World Steel 27th April, 2017 has observed that "having regard to the nature of the
Association. issues involved, this Court is of the opinion that the matter is required to
be heard by learned Division Bench of this Court". Hearing of the matter
B. OPPORTUNITIES & THREATS FOR SAIL in the Division Bench is yet to start.

Opportunities: D. OUTLOOK

• India is one of the fastest growing steel consumers in the World and is all Analysts are upbeat over the expected above normal monsoon and higher
set to become the 2nd largest steel consumer in the World in the coming GDP growth. The slow pace of public and private sector projects is expected
years. 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
• Options to outsource non-core activities viz. township, schools, hospitals, at improving the ease of doing business in the Country. Small and medium
etc. industry- a major employment generator for the economy- has been liberated
to participate in the Nation's development in accordance with its potential.
• Leveraging the benefits of Modernization and Expansion Plan to improve
Bold measures by the Government such as improved targeting of subsidy,
product quality and operational efficiency, and reduce cost of production.
broadening of the tax base and expected buoyancy in tax revenue are all aimed
Threats at achieving the fiscal consolidation which had been an area of concern in the
recent past.
• Stringent environment norms for Steel Plants and Mines.
E. STRENGTHS & WEAKNESSES
• Naxalite affected mining areas.
Strengths
• Increased competition from domestic as well as Global steel companies.
• Rake availability from the railways for inward and outward movement of • SAIL is one of the largest steel producers in the Country, with a well
raw materials and finished goods. diversified product portfolio, a robust nationwide marketing network,
captive iron ore resources, skilled and highly qualified manpower and a
C. RISKS AND CONCERNS dedicated R&D facility.

• Internally, there have been deficiencies in the form of delays in the ramping • Availability of land bank at existing Plant/Unit locations for future capacity
up of production from the new Units due to initial stabilization factors. expansion.
Fur ther, higher capital related charges on account of incremental • Modernization and Expansion Plan culminating with new and modernised
Depreciation and Interest of new facilities have also increased expenses. units, newer technology, enhanced product portfolio with more value
• In order to determine Carrying Capacity of mining leases of such mines added products, efficient and more environment friendly operations.
which are under operation in Saranda Forests in Jharkhand, Ministry of • Highly qualified professionals with experience in steel making.
Environment, Forest and Climate Change (MoEFCC) is in the process of
finalisation of report on Mining Plan for Sustainable Mining (MPSM). As Weaknesses
per the draft MPSM, the leases of Manoharpur (Chiria) ore mines falls in
Ankua Forest Block, the proposed Critical Biological Hot Spot, and thus, • Dependence on external sources for coking coal exposes the Company
may restrict/ prohibit mining in entire Chiria leases. Chiria being the single to market risks.
largest iron ore deposit in the Country, having estimated resources of • Limited captive availability of high quality raw materials.
about 2 billion tonnes is essential for iron ore security of the Steel Plants
of the Company. Finalisation of MPSM in aforesaid direction may impact • High manpower cost and relatively low manpower productivity.
future of Chiria mine of SAIL.
• Bolani Iron Ore Mines consists of two Leases viz. 5.1 Sq. Mile Lease and F. REVIEW OF FINANCIAL PERFORMANCE
6.9 Sq. Mile Lease. The infrastructures in the 6.9 Sq. Mile lease are
1. FINANCIAL OVERVIEW OF SAIL
necessary for sustenance of operation of adjoining 5.1 Sq. Mile lease of
Bolani Ore Mines due to geographical location of the Leases. Extension SAIL achieved sales turnover of `58,297 crore during the Financial Year 2017-
of lease period of the 6.9 Sq. Mile Lease of Bolani Mine in Odisha under 18, which was higher by 19% over last year's turnover of `49,180 crore.
MMDR (Amendment Act), 2015 read with notification dated 3rd December, However, the net sales turnover of `56,893 crore was higher by 30% over last
2015 of Ministry of Mines, Government of India is pending with Steel & year's net sales turover of `43,866 crore. During the Financial Year 2017-18,
Mines Department, Government of Odisha. Extension of lease period for there was Loss after Tax of `481.71 crore as compared to Loss after Tax of
6.9 Sq. Mile Lease is essential for un-interrupted operation of Bolani Mine. `2,833.24 crore during the last year, which reflects 83% better performance
Government of Odisha issued a "Show Cause" Notice on 17th March, than last year. The comparative performance of major financial parameters
2017 to SAIL asking as to why the 6.9 Sq. Mile Lease should not be during the Financial Years 2017-18 and 2016-17 is given below:

26
 (` crore) The program was taken up with an aim to review and sharpen SAIL's business
strategies and processes, build for sustained market leadership and drive the
Particulars 2017-18 2016-17 Company towards profitability. As a part of the 'SAIL Uday' program, the
Sales Turnover 58297.26 49180.24 Company engaged M/s. Boston Consulting Group (BCG), a leading Global
Management Consultant, to study the health of the Company, suggest suitable
Less: Excise Duty 1403.90 5314.69 measures for its turnaround and provide hand holding support and assistance
to SAIL for implementation of approved road map for turnaround. The study
Net Sales Turnover 56893.36 43865.55
phase of 'SAIL Uday' culminated in October, 2017 with the submission of the
Profit before interest, depreciation, 5184.37 671.60 'Comprehensive Turnaround Roadmap' Report by M/s. Boston Consulting
exceptional/abnormal items and tax Group (BCG). The Roadmap contains over 260 recommendations
(EBIDTA) encompassing various functional areas of the Company including Raw
Materials, Production, Sales & Marketing, Supply Chain & Logistics, Man Power
Less: Interest and Finance Charges 2822.75 2527.82 & Productivity, etc. The Company has now embarked upon the next phase of
Less: Depreciation 3064.92 2679.95 "SAIL Uday" program involving implementation of the recommendations which
would contribute towards achieving the Company's turnaround.
Profit before tax (PBT) before exceptional / -703.30 -4536.17
abnormal items 1.2.2 Cost Control Measures

Exceptional Items : • Emphasis on cost reduction with improvement in productivity continued

during the year through process improvement and efforts by R&D.
Less: Exceptional Item-Voluntary 254.20 216.74 Awareness was created at all levels to control cost in all areas of operation.
Retirement Compensation
• Strategic actions such as optimizing coal blend, improvement in yields,
Pension Provision Written back -458.16 0.00 reduction in coke rate, enhanced concast production, sale of idle assets
Wage Revision Provision -110.82 0.00 and maximizing use of in-house engineering shops resulted in enhanced
cost reduction during the year.
Other Exceptional Items 288.35 0.00
• During the Financial Year 2017-18, a total of 1269 employees separated
Less: Abnormal Item-Expenses on 82.07 97.95 from the services of the Company through the Voluntary Retirement
temporarily suspended mines Scheme (VRS), 2017. With a view to further rationalise manpower, VRS,
Profit (+)/Loss(-) Before Tax -758.94 -4850.86 2018 has been implemented w.e.f. 1st May, 2018.

Less: Provision for taxation -277.23 -2017.62 1.2.3 Marketing

Profit(+)/Loss(-) After Tax -481.71 -2833.24 The Company took various initiatives during the Financial Year 2017-18 aimed
at sustaining and consolidating its position as the leading steel producer of
Other Comprehensive Income 186.32 -353.60 the Country.
Total Comprehensive Income (+)/Loss(-) -295.39 -3186.84 Further, with a view to widening the options that the Company makes available
to customers and to meet their needs for customized or specific application
Net Worth 35714 36009
steels, a number of new products were developed in 2017-18, including the
EBIDTA to Net sales (%) 9.11 1.53 following:
Return (PAT) on Net worth (%) -1.35 -7.87 • API grade certification is the international benchmark for steel used in Oil
and Gas pipelines. SAIL has developed API X-70 PSL-2 Grade Plates
EBIDTA to average capital employed (%) 8.78 1.27 from the New Plate Mill at RSP to meet the demand from the oil sector.
Earning per share of Rupee 10/- each -1.17 -6.86 Your Company is now certified to produce plates compliant to this critical
grade, thereby opening up the lucrative market in oil and gas pipelines.
Debt Equity Ratio 1.27:1 1.15:1
• As infrastructure grows, more and more steel bridges shall be constructed
As compared to last year, the Loss before Tax of the Company in the Financial using specialised steels optimised for this end use. The World's highest
Year 2017-18 has reduced mainly due to higher Saleable Steel railway bridge (the Chenab Bridge in Jammu & Kashmir), is situated where
Production(1.5%), concast production(11%), Saleable Steel Sales(7%), Net ambient temperatures can go below zero degrees centigrade. The steel
Sales Realisation of 5 Integrated Steel Plants(20%), improved product mix, structure of the bridge, however, is required to perform without any
write back of pension provision for the period 1st April, 2015 to 31st December, compromise of safety even at extreme low temperatures. In response to
2016, write back of wage revision provision of Q4 of Financial Year 2016-17, this demanding requirement, your Company developed Customized
higher usage of CDI for CDI furnaces, reduction in coke rate, improvement in IS:2062 E 250 C & Customized IS:2062 E 410 C plates, which go beyond
BF productivity, improvement in energy consumption, reduction in salaries & the normal grades and guarantee higher strength and higher toughness
wages, etc. However, the profitability of the Company has been adversely even at - 20o Celsius.
affected due to provision towards various mining related issues, increase in • In order to meet the needs of our defence forces, your Company has
average imported and indigenous coal prices, increase in consumption of developed Quenched & Tempered Plates under the brand SAIL ARM. These
stores & spares, repairs & maintenance, security expenses, higher usage of plates can be used for ammunition testing, armour plating, etc.
imported coal in blend due to lower availability of indigenous coal, increase in
average rate of purchased power, increase in interest cost and depreciation, • Railway Wagons need steel with high strength and toughness. In order to
etc. meet requirements for high capacity wagons as per new designs by RDSO,
SAIL developed and supplied High Strength plates conforming to quality
1.2 Initiatives Taken by the SAIL Management ISH 5986 Gr. 590R for this critical application.
1.2.1 Turnaround Plan In order to introduce customers to the advantages offered by SAIL's new product
In order to meet the challenges of adverse business environment, a Company- range, the Company formed dedicated cross functional teams for marketing
wide turnaround program named 'SAIL Uday' was initiated during 2016-17. products from the new mills at IISCO Steel Plant, Durgapur Steel Plant, Rourkela

27
Steel Plant & Bokaro Steel Plant and engaging with new market segments. `35,714 crore as on 31st March, 2018. M/s. CARE Ratings, M/s. India Ratings
Seminars, workshops and meetings were organized with end users, architects, and M/s. Brickwork Ratings, RBI approved credit rating agencies, assigned
structural designers, etc. Visits were exchanged between customers, SAIL 'CARE AA- Outlook: Negative', 'India Ratings AA- Outlook: Negative' and 'BWR
Plants, designers and architects in order to achieve a mutual understanding of AA Outlook: Negative' ratings respectively for SAIL's long-term borrowing
end user requirements as well as production, performance and testing programme.
parameters. These efforts enabled your Company to develop and supply several 1.4 Contribution to SAIL Gratuity Trust
new grades and products, including commencement of supplies to the highly
demanding and high value auto segment. It also enabled to open up potential The total contribution made by the Company to SAIL Gratuity Trust upto
markets for supply of API X-70 plates to the demanding oil sector and for 31st March, 2018 was ` 3,349 crore. The fund size has grown to ` 6,309 crore
supply of parallel flange beams to State Electricity Boards. as on 31st March, 2018, net of settlement done towards payment of Gratuity.
To enhance its product basket and develop avenues for enhancing value to the 2. ANALYSIS OF THE FINANCIAL PERFORMANCE OF THE COMPANY
customer, a new vertical "Special Initiatives Group" (SIG) has been formed in
the marketing department. The SIG has focused on last mile connectivity i.e. 2.1 Revenue from Operations
bridging the gap between mill products and the customer's end use, and has a) Sale of Products
identified new avenues for creating value such as Re-Bar Processing; Crash
Barriers; Precision Pipes; Colour Coated Sheets, etc. (` crore)

In order to tap the potential of the vast rural market, your Company has taken Particulars FY 2017-18 FY 2016-17 Change %
the initiative of conducting rural workshops to educate rural Indians about Sales of Saleable Steel 55481.04 46653.91 18.92
usage of steel. In the Financial Year 2017-18, more than 100 locations over Products
26 States / Union Territories have been covered. Sales of Other Products 2816.22 2526.33 11.47
To enhance value to customer, nearly 17,000 MT of steel in specially bundled Total Sales Turnover 58297.26 49180.24 18.54
and packed condition was door delivered directly to customers' site in
Less: Excise Duty 1403.90* 5314.69 -73.58
Bangladesh.
Net Sales Turnover 56893.36 43865.55 29.70
Your Company has one of the largest marketing networks among the steel
producers in the Country. As on 1st April, 2018, SAIL's network of marketing *Excise Duty is for the period upto 30th June 2017 which has been discontinued
offices consists of 37 Branch Sales Offices, 10 Customer Contact Offices, 25 upon implementation of Goods and Services Tax (GST) w.e.f. 1st July 2017.
Departmental Warehouses and 22 functional Consignment Agency yards. Turnover is net of GST as per the requirement under INDAS.
Marketing effort is further supplemented through SAIL's extensive retail channel
comprising of 1837 dealers, including 409 rural dealers that aims to reach the b) Trend of Domestic Sales and Exports
products of mass consumption to remote corners of the Country.
In order to further reach out to the end customer in the Retail Segment through
an efficient distribution channel and provide value addition in product, delivery
and services to customers, Distributors are being appointed across the Country
as part of 2-tier Dealer- Distributor model.
1.3 Funds Management
During the year, the Company continued its thrust on judicious funds
management including raising of funds at competitive rates, timely repayment
of loans including interest, advance planning and action for future fund raising,
etc. to meet the growth objectives. The Company had borrowings at `45,409
crore as on 31st March, 2018.The Company has fully hedged the foreign
currency risk on Buyers' Credit and repayment of External Commercial
Borrowings. The debt equity ratio of the Company increased to 1.27:1 as on
31st March 2018 from 1.15:1 as on 31st March, 2017 due to increase in
borrowings as well as reduction in Net-worth during the year. The Net-worth
of the Company declined from `36,009 crore as on 31st March, 2017 to

The Company catered to almost the entire gamut of the mild steel business
namely, Flat Products in the form of Plates, HR coils/sheets & CR coils/sheets,
Galvanised Plain/Corrugated Sheets and Long Products comprising Rails,
Structural, Wire-rods and Merchant Products. In addition, Electric Resistance
Welded Pipes, Spiral Welded Pipes and Silicon Steel Sheets formed part of
Company's rich product-mix. The product category-wise sales turnover during
2017-18 is given as under:

28
 Products Category % of Sales value 2.5 Non-Current / Current Assets
(` crore)
Saleable Steel
Particulars 2017-18 2016-17 Change %
Flat Products (including Pipes & Electrical sheets) (a) 51
Non-Current Assets
Long Products (b) 41
Integrated Steel Plants - Mild Steel (c = a + b) 92 (a) Property, Plant and Equipment 57156 48762 17.21
Alloy & Special Steel Plants - Alloy & Special Steel (d) 3 (b) Capital Work-in-Progress 18395 23275 -20.97
Total Saleable Steel (e = c + d) 95 (c) Investment Property 1 1 -3.49
Secondary Products (Pig Iron, Scrap, Coal 5 (d) Intangible Assets 1455 1523 -4.46
Chemicals etc.) (f)
(e) Financial Assets
Total (g = e + f) 100
(i) Investments 1491 1395 6.87
c) Sale of Services - Service Charges (ii) Trade Receivables
(` crore)
(iii) Loans 451 454 -0.45
FY 2017-18 FY 2016-17 Change %
(iv) Other Financial Assets 166 262 -36.67
23.56 31.89 -26.12
(f) Deferred Tax Assets (Net) 4185 4006 4.48
Revenue from sale of services decreased by about `8.33 crore during the (g) Non current tax assets (Net) 190 236 -19.30
current year.
(h) Other non-current assets 1060 1080 -1.85
d) Other Operating Revenues
(` crore) TOTAL NON-CURRENT ASSETS 84552 80994 4.39
FY 2017-18 FY 2016-17 Change % (` crore)
641.54 554.97 15.60 Particulars 2017-18 2016-17 Change %

Other operating revenues increased by about `86.57crore over previous year Current Assets
primarily on account of higher realisation from social amenities and sale of (a) Inventories 16997 15711 8.18
sundries.
(b) Financial Assets
2.2 Other Income
(` crore) (i) Trade Receivables 3870 2922 32.46

FY 2017-18 FY 2016-17 Change % (ii) Cash & cash equivalents 79 121 -34.30
484.45 535.61 -9.55 (iii) Bank balances other 175 168 3.84
than (ii) above
Other income decreased by about `51.16 crore over previous year mainly
due to decrease in interest income from customers and term deposits and (iv) Loans 63 61 3.95
decrease in dividend income. (v) Other Financial Assets 2787 2268 22.89
2.3 Expenditure (c) Current Tax Assets (Net)
(` crore)
(d) Other Current Assets 5634 4282 31.58
Particulars FY 2017-18 FY 2016-17 % Change
(e) Assets classified as held 33 12 172.19
Raw Materials Consumed 26678 21126 26.28 for sale
Employee Remuneration & 8850 8948 -1.10 TOTAL CURRENT ASSETS 29638 25545 16.02
Benefits
TOTAL ASSETS 114190 106539 7.18
Finance Cost 2823 2528 11.67
Depreciation 3065 2680 14.37 • Property, Plant & Equipment increased by ` 8,394 crore mainly due to
capitalization of new facilities.
Other Expenses 16276 14220 14.46
• The capital work-in-progress decreased by `4,880 crore on account of
During the year 2017-18, there was unprecedented increase in average capitalization of various capital schemes in steel Plants.
imported coal prices and this has affected the raw material prices substantially.
Further, indigenous coal prices also increased in line with imported coal prices • The Non-current Investments has increased by `96 crore primarily due
due to invoking of imported coal price parity by domestic coal companies. to investment in International Coal Ventures Private Limited, a Joint Venture
During the year, the Employees' Remuneration & Benefits have decreased Company of SAIL.
mainly due to reduction in manpower numbers on account of natural separation • Other Non-Current Assets decreased by `20 crore.
and voluntary retirement scheme. Higher finance cost was due to increase in
borrowings and increase in depreciation was due to capitalization of new • The Inventories increased by `1,286 crore mainly on account of increase
facilities. The increase in other expenses was on account of increase in the in raw materials inventory due to high quantity and increase of imported
cost of stores & spares, repairs & maintenance, power & fuel, royalty and coking coal.
cess, etc.
• Increase in trade receivables was by `948 crore.
2.4 Contribution to Exchequer
• Other Current Assets increased by `1,352 crore, mainly on account of
During the year, SAIL contributed `9,295 crore to the national exchequer by Input Tax Credit Receivable under GST law.
way of payment of taxes and duties to various government agencies.

29
2.6 Non-Current/ Current Liabilities • Purchase Cost Reduction: By adopting multi-pronged strategy in
(` crore) purchase of bulk items / Centralized Procurement Agency (CPA) items,
cost-savings of more than `121 crore were achieved in several areas
Particulars 2017-18 2016-17 Change %
like Low Silica Limestone, Ferro-alloys and Sea Water Magnesia, etc.
Non-Current Liabilities • E-Procurement: E-tendering using Supplier Relationship Management /
(a) Financial Liabilities Enterprise Procurement System Platforms increased to 59.63% from
48.67% on Y-o-Y basis.
(i) Borrowings 29777 19087 56.0
• Systems Improvement: Certain new/revised Policies and Procedures
(ii) Trade Payables 6 7 -18.5 including Uniform Trial Procedure, Bank Guarantee Procedure in SAIL,
(iii) Other Financial Liabilities 1179 1366 -13.7 General Terms & conditions for Sale & Auction from Plants/ Units of SAIL
were issued during the Year 2017-18. Besides, for posting of data/
(b) Long Term Provisions 3974 3594 10.6 information on MSME Sambandh Portal of Govt. of India, an online module
(c) Deferred Tax Liabilities (Net) was developed for submission of data/ information by the Plants/ Units.

(d) Other Non-Current Liabilities 139 151 -7.9 H. FOREIGN EXCHANGE CONSERVATION
Total Non-Current Liabilities 35075 24206 44.9 The Company endeavors to procure equipment, raw materials and other inputs
from indigenous sources to the extent they become available to the Company,
Current Liabilities at the commercially acceptable prices/costs and meet the requirements of
(i) Borrowings 12244 19813 -38.2 the technologies being used in the Company. For incurrence of expenditure in
foreign currency, besides exercising the requisite control, it is ensured that it
(ii) Trade Payables 7540 5219 44.5 is in the commercial interest of the Company. Further, the Company has also
(iii) Other Financial Liabilities 14170 12766 11.0 taken reasonable steps to ensure that all receivables in foreign exchange,
which are due to the Company, are realized within contractual period.
(b) Other Current Liabilities 7142 5607 27.4
(c) Provisions 2304 2915 -20.9 I. PROJECT MANAGEMENT
(d) Current Tax Liabilities (Net) - 5 -100.0 AMR SCHEMES
Besides Modernisation and Expansion Projects, the Addition, Modification &
Total Current Liabilities 43401 46324 -6.3 Replacement(AMR) Schemes have also been taken up which are required for
Total (Current+Non-Current 78476 70530 11.3 management of existing operations and primarily focuses on improving the
Liabilities) current level of efficiency and output in incremental measures. AMR Schemes
are undertaken for improving or revamping of existing facilities for sustaining
• Increase in long term borrowings by 56% was due to replacement of the existing operations, balancing / debottlenecking of production processes,
short term borrowings with long term borrowings. improvement in energy & other resource consumption / services / safety and
• The short term borrowings decreased by `7,569 crore due to repayment environment. Replacement includes mostly replacing the existing Plant &
of Commercial Paper and repayment of Foreign Currency Buyers' Credit. Equipment / facility with better performance Plant & Equipment / facility; Re-
building of certain facilities like Coke Oven Batteries after its useful life is one
3. PLANT-WISE FINANCIAL PERFORMANCE (PROFIT BEFORE TAX) of the types of Replacement Scheme. Accordingly, a number of AMR schemes
(` crore) costing around `7,124 crore are under implementation in different Plants of
the Company as under:
Plant/Unit 2017-18 2016-17
• Construction of permanent Barracks at 21 locations for Rowghat Deposit,
Bhilai Steel Plant (BSP) 645.88 2.07 Upgradation of Stoves for Blast Furnace-4, Installation of Cast House
Durgapur Steel Plant (DSP) -270.85 -951.16 Defuming System in Blast Furnace No.7, Setting up of Static facility for
Environmentally Sound Management of Polychlorinated Biphenyls and
Rourkela Steel Plant (RSP) -180.24 -1357.80 Installation of Electro Static Precipitators as replacement of Multi Cyclones
for all 4 nos. of Sinter Machine at Sinter Plant -II at Bhilai Steel Plant.
Bokaro Steel Plant (BSL) 526.16 -203.07
• Installation of new Rotary Hearth Reheating Furnace at Wheel & Axle
IISCO Steel Plant (ISP) -988.55 -1946.39 Plant and Power Evacuation for 2x220MW New Power Plant at Durgapur
Alloy Steels Plant (ASP) -47.46 -33.25 Steel Plant.
• Installation of New Hot Strip Mill at Rourkela Steel Plant.
Salem Steel Plant (SSP) -211.07 -234.99
• Provision of Hydraulic Mudgun cum Drill Machine for Blast Furnace -1,
Visvesvaraya Iron & Steel Plant (VISP) -108.90 -116.89 Alternate Gas Network, New Sinter Plant, Modernization of Steel Melting
Shop -I, Upgradation of Stoves of Blast Furnace No. 1, Rebuilding of
SAIL Refractory Unit (SRU) 32.62 19.79
Coke Oven Battery-8 and Upgradation of 6 nos. of Electro Static
Chandrapur Ferro Alloys Plant (CFP) 19.30 -83.33 Precipitators of Lime Kiln and Replacement of Battery Cyclones with
Electro Static Precipitators in Sinter Plant at Bokaro Steel Plant.
Raw Materials Division/Central Units* -175.83 54.16
• 4 MW Power Plant at Chandrapur Ferro Alloy Plant.
SAIL: Profit Before Tax (PBT) -758.94 -4850.86
*including interest earned on deposits and retained in the books of Corporate J. IN-HOUSE DESIGN & ENGINEERING
Office. Centre for Engineering & Technology (CET), the in-house design, engineering
& consultancy Unit of SAIL provides the complete range of services from
G. MATERIALS MANAGEMENT concept to successful commissioning of projects in the complete value chain
A number of initiatives were taken to reduce cost of inputs and improve the of integrated steel plant and its mines. With a strength of about 240 qualified,
performance of materials management, some of which are summarized as trained and experienced engineers, CET is now taking leadership role in mineral
under: beneficiation, pellet plant, material handling, power plant, slag granulation plant,
• Inventory Reduction: Despite higher volume of purchase of Stores & stoves, water management, automation and many other related areas. The
Spares (increase of about 30% on Y-o-Y basis), inventory holding as on current major projects in its basket include Re-building of Coke Oven Battery
31st March, 2018 was 7.20 months only, slightly higher than 6.54 months No.7&8 at BSL, new 3.0 MT Hot Strip Mill at RSP, Modernization of SMS-1 at
as on 31st March, 2017. BSL, etc.

30
K. CONSULTANCY SERVICES In recognition of the contributions made by the Centre, RDCIS has bagged
Your Company has one of the largest pool of qualified and experienced several prestigious awards (4 in total) during 2017-18 like Vigilance Excellence
engineers, technologists, and professionally qualified HR & training experts. Award 2017, M. Visvesvaraya Award, etc.
Based on its large and varied expertise and experience acquired over the last
five decades, SAIL, through SAIL Consultancy Division('SAILCON') provides M. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
design, engineering, training, technical & management consultancy services The Company has an efficient system of internal controls for achieving the
in Iron & Steel and related areas and offers a wide range of services to clients following business objectives of the Company:
globally. SAILCON is an ISO 9001:2015 certified quality organization and has • Efficiency of operations
actively undertaken ventures by drawing its strength from the extensive and
varied expertise embedded in SAIL Plants and Units and served its esteemed • Protection of resources
customers as per their requirements. Technical and Management Training • Accuracy and promptness of financial reporting
services are its forte and these services have been availed of by several • Compliance with the laid down policies and procedures
organizations in private and public sector within India and abroad.
• Compliance with various laws and regulations.
"SAILCON" has executed assignments within India and abroad covering
In SAIL, Internal Audit is a multi-disciplinary function which reviews, evaluates
countries like Egypt, Saudi Arabia, Iran, Qatar, Thailand, Nepal, Philippines,
and appraises various systems, procedures/policies of the Company and
etc.
suggests meaningful and useful improvements. It helps Management to
During the Financial Year 2017-18, SAILCON laid enhanced focus on taking accomplish its objectives by bringing a systematic and disciplined approach
up training assignments and provided training services in steel making to to improve the effectiveness of risk management towards good corporate
newly recruited executives of a green field integrated steel plant. governance.
L. RESEARCH & DEVELOPMENT The Company is constantly taking measures to make the audit function more
Research and Development Centre for Iron & Steel (RDCIS) of the Company effective. The Internal Audit is subject to overall control environment supervised
is India's premier research organization in the field of ferrous metallurgy. by Board Level Audit Committee, providing independence to the Internal Audit
Recognizing that development and assimilation of new technologies & process Function, emphasizing transparency in the systems and internal controls with
innovations are basic tenets for sustainable growth, SAIL has given thrust for appropriate skill-mix of Internal Audit Personnel, etc. Audit Plan based on
its R&D efforts through its well equipped R&D Centre located at Ranchi. It has identification of key-risk areas with thrust on system/process audits and
more than three hundred diagnostic equipment and adequate pilot facilities benchmarking of the best practices followed in the Plants/Units, is made and
under fifteen major laboratories. The centre undertakes research projects approved by Audit Committee so as to achieve overall efficiency improvement
encompassing the entire spectrum of iron & steel starting from raw materials including cost reduction in operations of the Company. Development of Internal
to finished products. In the year 2017-18, 92 projects were pursued and 38 Audit Executives, bringing awareness amongst auditees, converging on the
projects completed with substantial benefits to the organization. pro-active role of internal audit remained other focus areas during the year.
Three projects are being pursued with assistance from Ministry of Steel: (a) The Audit Committee in its meetings with the Company's Statutory Auditors
Development of Pilot scale pelletization technology for Indian Goethitic/ hematite also ascertains their views on the adequacy of internal control systems in the
ore with varying degree of fineness (completed in September 2017); (b) Company and their observations on financial reports. The Audit Committee's
Indigenous development of model based breakout prediction system for observations are acted upon by the Management. The Audit Committee, inter-
Continuous Casters; and (c) Development of automation system for optimum alia, has also monitored /reviewed the following areas:
coal blending at coal handling plant of coke oven batteries. • Periodic review of Enterprise Risk Management (ERM).
RDCIS also pursues pioneering work in the area of development of niche • Status of Contingent Liabilities.
products as per market requirements aiming at superior performance based • Energy Audit.
on application. During the year 2017-18, twenty products have been developed
• Functioning of Vigil Mechanism in SAIL.
and some of the noteworthy products include resistant steels for Indian
Construction Segment, Rail wagons, Pressure pipelines, Gas pipelines, • Cost Audit Reports.
Domestic LPG Cylinder, etc. • Estate Related Issues.
In its pursuit for excellence in various research fields, RDCIS enters into The Internal Audit System is supplemented by well-documented Policies,
collaboration mode of research in specific areas with renowned research Guidelines and Procedures and regular reviews are being carried out by the
institutions and academia. During the year 2017-18, MoU/ Collaboration Internal Audit Department. The reports containing Significant Audit Findings
agreements have been entered into with institutions such as BIT, Sindri and are periodically submitted to the Management and Audit Committee of the
IIT Kharagpur. Board.
The efforts of RDCIS engineers and scientists have culminated in filing of 25 CAUTIONARY STATEMENT
patents and 29 copyrights (in association with SAIL Plants) during 2017-18.
Certain statements in the Management Discussion and Analysis, describing
As many as 90 technical papers (21 international) were published and 97
the Company's objective, projections and estimates are forward looking
papers (24 international) were presented. In addition, RDCIS undertook contract
statements and progressive within the meaning of applicable Laws and
research work and provided consultancy services and know-how to
Regulations. Actual results may vary from those expressed or implied,
organisations outside SAIL.
depending upon economic conditions, Government Policies and other incidental
factors.

31
Standalone Balance Sheet
As at 31st March, 2018 (` crore)

Note No. As at As at
31st March, 2018 31st March, 2017

ASSETS
Non-current assets
(a) Property, Plant and Equipment 4 57156.09 48762.03
(b) Capital work-in-progress 5 18395.43 23275.39
(c) Investment property 6 0.83 0.86
(d) Intangible assets 7 1454.63 1522.58
(e) Financial assets
(i) Investments 8 1491.30 1395.48
(ii) Trade receivables 9 - -
(iii) Loans 10 451.46 453.52
(iv) Other financial assets 11 166.18 262.42
(f) Deferred tax assets (net) 12 4185.27 4005.84
(g) Current tax assests (net) 13 190.31 235.81
(h) Other non-current assets 14 1060.10 1080.12
84551.60 80994.05
Current Assets
(a) Inventories 15 16996.67 15711.35
(b) Financial assets
(i) Trade receivables 16 3869.94 2921.69
(ii) Cash and cash equivalents 17 (i) 79.45 120.93
(iii) Other bank balances 17 (ii) 174.61 168.16
(iv) Loans 18 63.41 61.47
(v) Other financial assets 19 2787.20 2267.85
(c) Other current assets 20 5634.42 4282.03
29605.70 25533.48
Assets classified as held for sale 21 32.50 11.94
TOTAL ASSETS 114189.80 106539.47
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 22 4130.53 4130.53
(b) Other equity 23 31583.14 31878.53
35713.67 36009.06
Liabilities
Non-current liabilities
(a) Financial Liabilities
(i) Borrowings 24 29777.16 19087.48
(ii) Trade payables 25 6.38 7.36
(iii) Other financial liabilities 26 1179.36 1365.93
(b) Provisions 27 3973.28 3593.94
(c) Other non-current liabilities 28 138.33 151.29
35074.51 24206.00
Current liabilities
(a) Financial liabilities
(i) Borrowings 29 12244.32 19813.04
(ii) Trade payables 30 7540.50 5219.20
(iii) Other financial liabilities 31 14170.20 12765.62
(b) Other current liabilities 32 7142.42 5607.26
(c) Provisions 33 2304.18 2914.77
(d) Current tax liabilities (net) 34 - 4.52
43,401.62 46,324.41
TOTAL EQUITY & LIABILITIES 114189.80 106539.47
Significant Accounting Policies 3
The accompanying notes are an integral part of these standalone financial statements.
For and on behalf of Board of Directors
Sd/- Sd/- Sd/-
(M.C.Jain) (Anil Kumar Chaudhary) (P. K. Singh)
Company Secretary Director (Finance) Chairman
DIN: 03256818 DIN: 06398868
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ T N Ghosh ] [ Sanjay Jindal ] [ A K Sabat ]
Partner Partner Partner Partner
M. No. 050773 M. No. 050644 M. No. 087085 M. No. 030310
Place : New Delhi
Dated : May 30, 2018

32
Statement of Profit & Loss
For the year ended 31st March, 2018
(` crore)
st st
Note No. Year ended 31 March, 2018 Year ended 31 March, 2017

Income
Revenue from operations 35 58962.36 49767.10
Other income 36 484.45 535.61
Total Income 59446.81 50302.71
Expenses
Cost of materials consumed 37 26678.81 21125.70
Changes in inventories of finished goods and work in progress 38 1135.49 120.63
Excise duty 1403.90 5314.69
Employee benefits expense 39 8850.07 8947.83
Finance costs 40 2822.75 2527.82
Depreciation and amortisation expense 3064.92 2679.95
Other expenses 41 16276.24 14220.21
Total expenses 60232.18 54936.83
Profit/(Loss) before Exceptional items and tax (785.37) (4634.12)
Less: Exceptional items 41A (26.43) 216.74
Profit/(Loss) before tax (758.94) (4850.86)
Tax expense
Deferred tax (312.96) (2032.76)
Earlier years 35.73 15.14
Total tax expense (277.23) (2017.62)
Profit/(Loss) for the year (481.71) (2833.24)
Other Comprehensive income
(i) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans 275.33 (545.04)
Gain and losses from investments in equity instruments 8.79 3.02
designated at fair value through OCI
(ii) Income tax relating to items that will not be reclassified to profit or loss (97.80) 188.42
Other Comprehensive Income/(Loss) for the year 186.32 (353.60)
Total Comprehensive Income/(Loss) for the year (295.39) (3186.84)
Earnings per equity share
Number of equity shares (face value ` 10/- each) 4130525289 4130525289
Basic and diluted earnings per share (` ) (1.17) (6.86)
Significant Accounting Policies 3
The accompanying notes are an integral part of these standalone financial statements.

For and on behalf of Board of Directors

Sd/- Sd/- Sd/-
(M.C.Jain) (Anil Kumar Chaudhary) (P. K. Singh)
Company Secretary Director (Finance) Chairman
DIN: 03256818 DIN: 06398868
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ T N Ghosh ] [ Sanjay Jindal ] [ A K Sabat ]
Partner Partner Partner Partner
M. No. 050773 M. No. 050644 M. No. 087085 M. No. 030310
Place : New Delhi
Dated : May 30, 2018

33
Statement of Changes in Equity
For the year ended 31st March, 2018

A. Equity Share Capital (` crore)

Particulars Balance as at Changes in equity Balance as at
1st April, 2016 share capital 31st March, 2017

Equity shares with voting rights 4,130.39 0.02 4,130.41

Equity shares without voting rights 0.14 (0.02) 0.12
Balance as at Changes in equity Balance as at
1st April, 2017 share capital 31st March, 2018

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

Equity shares without voting rights 0.12 - 0.12

B. Other Equity (` crore)

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

Balance as at 1st April, 2016 1.75 235.10 5,095.13 1,449.96 28,283.65 (0.22) 35,065.37

(Loss) for the year - - - - (2,833.24) - (2,833.24)

Other comprehensive income (loss) for the year - - - - (356.62) 3.02 (353.60)

Total comprehensive income/ (loss) for the year - - - - (3,189.86) 3.02 (3,186.84)

Transfer from bond redemption reserve - - - (84.09) 84.09 - -

Transfer to bond redemption reserve - - - 607.77 (607.77) - -

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

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

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

Other comprehensive income (loss) for the year (net of tax) - - - - 177.53 8.79 186.32

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

Transfer from bond redemption reserve - - - (239.75) 239.75 - -

Transfer to bond redemption reserve - - - 606.80 (606.80) - -

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

Significant Accounting Policies 3

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

For and on behalf of Board of Directors

Sd/- Sd/- Sd/-
(M.C.Jain) (Anil Kumar Chaudhary) (P. K. Singh)
Company Secretary Director (Finance) Chairman
DIN: 03256818 DIN: 06398868
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ T N Ghosh ] [ Sanjay Jindal ] [ A K Sabat ]
Partner Partner Partner Partner
M. No. 050773 M. No. 050644 M. No. 087085 M. No. 030310
Place : New Delhi
Dated : May 30, 2018

34
Cash Flow Statement
For the year ended 31st March, 2018 (` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

A. CASH FLOW FROM OPERATING ACTIVITIES

Profit/(Loss) before tax (758.94) (4850.86)
Adjustments for:
Depreciation and amortisation expenses 3064.92 2679.95
Loss/(Gain) on disposal of fixed assets (net) 72.80 48.17
Interest income (166.09) (0.10)
Dividend income (76.16) (91.93)
Finance costs 2822.75 2527.82
Loss/(Gain) on sale of non-current investments - (0.01)
Bad debts and provision for doubtful advances/receivables 85.42 74.47
Other provisions 130.32 73.08
Unclaimed balances and excess provisions written back (172.26) (97.62)
Operating Profit/(Loss) before working capital changes 5002.76 362.97
Changes in assets and liabilities:
Trade receivables (861.41) 244.95
Loans, other financial assets and other assets (1755.36) (431.53)
Trade payable 2320.32 1217.02
Other financial liabilities, other liabilities and provisions 2813.08 1801.41
Inventories (1402.56) (1104.70)
Cash flow from operating activities post working capital changes 6116.83 2090.12
Income tax paid (net) 40.98 34.91
Net cash flow from operating activities (A) 6157.81 2125.03
B CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant & equipment (including capital work-in-progress) and intangibles (6757.49) (5452.18)
Proceeds from sale/disposal of property, plant & equipment 153.09 25.02
Purchase of current and non-current investments (100.11) (100.90)
Movement in fixed deposits (net) (6.45) (2.64)
Interest received 166.09 0.10
Dividend received 76.16 91.93
Net cash flows/(used) in investing activities (B) (6468.71) (5438.67)
C CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings (net) 10689.68 1591.77
Proceeds from short-term borrowings (net) (7568.72) 4238.18
Finance cost paid (2851.54) (2527.82)
Net cash flows/(used) in financing activities (C) 269.42 3302.13
Increase in cash and cash equivalents (A+B+C) (41.48) (11.51)
Cash and cash equivalents at the beginning of the year 120.93 132.44
Cash and cash equivalents at the end of the year (Note No. 17(i)) 79.45 120.93
The amendments to Ind AS 7 Cash Flow Statement requires the entity to provide disclosures that enables users of Financial Statements to evaluate changes in liabilities arising from
financial activities, including both changes arising from cash flows and non cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in Balance
Sheet for liabilities arising from financial activities, to meet the disclosure requirement. This amendment has become effective from 1st April, 2017 and the required disclosure is made
below. There is no other impact on the Financial Statements due to this amendment.
(` crore)
Non cash changes
As at Cash Flows Fair Value Current/Non Current As at
31.03.2017 Changes Classification 31.03.2018
Borrowings - Non Current 19087.48 7417.97 - (3271.71) 29777.16
Current Maturities of Long Term Debt 2381.74 (2381.74) - 3271.71 3271.71
Borrowings - Current 19813.04 (7568.72) - - 12244.32
The cash flow statement has been prepared under the indirect method as set out in Ind AS-7, Statement of Cash Flows.
The accompanying notes are an integral part of these standalone financial statements.
For and on behalf of Board of Directors
Sd/- Sd/- Sd/-
(M.C.Jain) (Anil Kumar Chaudhary) (P. K. Singh)
Company Secretary Director (Finance) Chairman
DIN: 03256818 DIN: 06398868
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ T N Ghosh ] [ Sanjay Jindal ] [ A K Sabat ]
Partner Partner Partner Partner
M. No. 050773 M. No. 050644 M. No. 087085 M. No. 030310
Place : New Delhi
Dated : May 30, 2018

35
Notes to Standalone Financial Statements for the Year ended 31st March, 2018
1. Corporate and General Information acquired comprises its purchase price, including import duties and non-
Steel Authority of India Limited (referred to as "the Company") is domiciled and refundable purchase taxes, any directly attributable costs of bringing the assets
incorporated in India. The Company, a Public Sector Undertaking conferred with to its working condition and location and present value of any obligatory
Maharatna status by Government of India, is one of the largest steel producers decommissioning costs for its intended use. Plant and Machinery also include
in the Country. The registered office of the Company is situated at Ispat Bhawan, assets held under finance lease.
Lodhi Road, New Delhi-110 003. The securities of the Company are listed on In case of self-constructed assets, cost includes the costs of all materials used
the National, Bombay and London Stock Exchanges. in construction, direct labour, allocation of overheads, directly attributable
These financial statements have been approved by the Board of Directors of the borrowing costs including trial run expenses (net of revenue)
Company in their meeting held on 30th May, 2018. Spares having useful life of more than one year and having value of ` 10 lakhs
2. Basis of Preparation or more in each case, are capitalised under the respective heads as and when
available for use.
2.1 Statement of Compliance
Profit or loss arising on the disposal of property, plant and equipment is recognised
The financial statements of the Company have been prepared on accrual basis
in the Statement of Profit and Loss.
of accounting in accordance with the Indian Accounting Standards (Ind AS) as
prescribed under Section 133 of Companies Act, 2013, as notified under the 3.1.2 Subsequent Cost
Companies (Indian Accounting Standards) Rules, 2015 (as amended), and other Subsequent expenditure is recognised as an increase in the carrying amount of
accounting principles generally accepted in India. The Company has uniformly the asset or recognised as a separate asset, as appropriate, only when it is
applied the accounting policies during the periods presented. probable that future economic benefits derived from the cost incurred will flow
2.2 Basis of Measurement to the Company and the cost of the item can be measured reliably. The carrying
amount of replaced item(s) is derecognised. .
The financial statements are prepared on a historical cost basis except for the
following assets and liabilities which have been measured at fair value: Any repair of ` 50 lakhs or more of property, plant and equipment are recognised
in the carrying amount of the item if it is probable that the future economic
• certain financial assets and liabilities which are classified as fair value
benefits of the costs incurred will flow to the Company. The carrying amount of
through profit and loss or fair value through other comprehensive income;
the replaced item(s) is derecognised.
• assets held for sale, at the lower of the carrying amounts and fair value
3.1.3 Depreciation
less cost to sell;
Depreciation on tangible assets and investment property is provided on straight
• defined benefit plans and plan assets.
line method, considering residual value of 5% of the cost of the asset, over the
2.3 Functional and Presentation Currency useful lives of the assets, as specified in Schedule II of the Companies Act,
The Financial Statements have been presented in Indian Rupees (`), which is 2013 except in case of Factory Buildings, Plant and Machinery, Water Supply &
the Company's functional currency. All financial information presented in ` have Sewerage and Railway Lines & Sidings and components thereof, where useful
been rounded off to the nearest two decimals of crore unless otherwise stated. life is determined by technical experts. The useful life assumed by the technical
2.4 Use of Estimates and Management Judgement experts is as under:
In preparing the financial statements in conformity with Company's Accounting
Policies, management is required to make estimates and assumptions that affect
reported amounts of assets and liabilities and the disclosure of contingent Asset category Estimated useful life (in years)
liabilities as at the date of the financial statements, the amounts of revenue and Factory Buildings 35 to 40
expenses during the reported period and notes to the Financial Statements.
Plant and Machinery 10 to 40
Actual results could differ from those estimates. Any revision to such estimates
is recognised in the period in which the same is determined. Water Supply & Sewerage 25 to 40
2.5 Current versus Non-current classification Railway Lines & Sidings 35 to 40
The Group presents assets and liabilities in the balance sheet based on current/ For these classes of assets, based on technical evaluation carried out by external
non-current classification. An asset is classified as current when it is: technical experts, the Company believes that the useful lives as given above
• Expected to be realised or intended to sold or consumed in normal best represent the period over which Company expects to use these assets.
operating cycle Hence, the useful lives for these assets are different from the useful lives as
prescribed under Part C of Schedule II of the Companies Act, 2013.
• Held primarily for the purpose of trading
The estimated useful lives and residual values of depreciable/ amortisable assets
• Expected to be realised within twelve months after the reporting period,
are reviewed at each year end, with the effect of any changes in estimate
or
accounted for on a prospective basis.
• Cash or cash equivalent unless restricted from being exchanged or used Where the historical cost of a depreciable asset undergoes a change, the
to settle a liability for at least twelve months after the reporting period depreciation on the revised unamortised depreciable amount is provided over
All other assets are classified as non-current. the residual useful life of the asset. Depreciation on addition/ deletion during the
A liability is classified as current when: year is provided on pro-rata basis with reference to the month of addition/ deletion.
• It is expected to be settled in normal operating cycle Assets costing up to ` 5000/- are fully depreciated in the year in which they are
put to use.
• It is held primarily for the purpose of trading
Depreciation on capital spares is provided over the useful life of the spare or
• It is due to be settled within twelve months after the reporting period, or
remaining useful life of the mother asset, as reassessed, whichever is lower.
• There is no unconditional right to defer the settlement of the liability for at
3.2 Intangible assets
least twelve months after the reporting period
3.2.1 Recognition and measurement
All other liabilities are classified as non-current.
Mining Rights
The operating cycle is the time between the acquisition of assets for processing
and their realisation in cash and cash equivalents. Deferred tax assets and Mining Rights are treated as Intangible Assets and all related costs thereof are
liabilities are classified as non-current assets and liabilities. amortised on the basis of annual production to the total estimated mineable
reserves. In case the mining rights are not renewed, the balance related cost
3 SIGNIFICANT ACCOUNTING POLICIES will be charged to revenue in the year of decision of non-renewal.
A summary of the significant accounting policies applied in the preparation of Acquisition Cost i.e. cost associated with acquisition of licenses, and rights to
the financial statements is given below. These accounting policies have been explore including related professional fees, payment towards statutory forestry
applied consistently to all the periods presented in the financial statements. clearances, as and when incurred, are treated as addition to the Mining Rights.
3.1 Property, Plant and Equipment Other Intangible Assets
3.1.1 Recognition and Measurement Software which is not an integral part of related hardware, is treated as intangible
Tangible Assets asset and amortised over a period of five years or its licence period, whichever
Property, Plant and Equipment held for use in the production or/and supply of is less.
goods or services, or for administrative purposes, are stated in the balance Research and development
sheet at cost, less any subsequent accumulated depreciation and impairment Development expenditure is capitalised only if it can be measured reliably and
losses. The initial cost at cash price equivalence of property, plant and equipment the related asset and process are identifiable and controlled by the Company.

36
 Research and other development expenditure is recognised as revenue 3.8 Foreign Currency Transactions
expenditure as and when incurred. Foreign currency transactions are translated into the functional currency of the
3.2.2 Subsequent Cost Company using the exchange rates prevailing at the date of the transactions.
Subsequent expenditure is capitalised only when it increases the future economic Foreign exchange gains and losses resulting from the settlement and re-
benefits embodied in the specific asset to which it relates. All other expenditure measurement of monetary items denominated in foreign currency are recognised
is recognised in the Statement of Profit and Loss. in the Statement of Profit and Loss at period-end exchange rates.
3.3 Impairment of Non-Financial Assets The Company opted for accounting the exchange differences arising on reporting
of long term foreign currency monetary items in line with Companies (Accounting
The Company reviews the carrying amount of its assets on each Balance Sheet
Standards) Amendment Rules 2009 relating to Accounting Standard-11 notified
date for the purpose of ascertaining impairment indicators, if any, by considering
by Government of India on 31st March, 2009 (as amended on 29th December
assets of entire one Plant as Cash Generating Unit (CGU). If any such indication
2011), which will continue in accordance with Ind-AS 101 for all pre-existing
exists, the assets' recoverable amount is estimated, as higher of the Net Selling
long term foreign currency monetary items as at 31st March 2016. Accordingly,
Price and the Value in Use. An impairment loss is recognised whenever the
exchange differences relating to long term monetary items, arising during the
carrying amount of an asset exceeds its recoverable amount.
year, in so far as they relate to the acquisition of fixed assets, are adjusted in the
Where an impairment loss subsequently reverses, the carrying amount of the carrying amount of such assets.
asset (or cash-generating unit) is increased to the revised estimate of its Non-monetary items are not retranslated at period-end and are measured at
recoverable amount, so that the increased carrying amount does not exceed the historical cost (translated using the exchange rates at the transaction date),
carrying amount that would have been determined had no impairment loss been
except for non-monetary items measured at fair value which are translated using
recognised for the asset (or cash-generating unit) in prior years. A reversal of an
the exchange rates at the date when fair value was determined.
impairment loss is recognised immediately in the Statement of Profit and Loss.
3.9 Employee Benefits
3.4 Stripping Cost
Defined Contribution Plan
The stripping cost incurred during the production phase of a surface mine is
A defined contribution plan is a plan under which the Company pays fixed
recognised as an asset if such cost provides a benefit in terms of improved
contributions into a separate entity. Payments to defined contribution retirement
access to ore in future periods and following criteria are met:
benefit plans are recognised as an expense when employees have rendered
• It is probable that the future economic benefits (improved access to an service entitling them to the contributions. Contributions towards Provident Funds
ore body) associated with the stripping activity will flow to the entity, are charged to the Statement of Profit and Loss of the period when the
• The entity can identify the component of an ore body for which access contributions to the Funds are due.
has been improved, and Defined Benefit Plan
• The costs relating to the improved access to that component can be Defined benefit plans are the amount of the benefit that an employee will receive
measured reliably. on completion of services by reference to length of service, last drawn salary or
The expenditure, which cannot be specifically identified to have been incurred direct costs related to such benefits. The legal obligation for any benefits remains
to access ore is charged to revenue, based on stripping ratio as per 5 year with the Company.
mining plan for mines, except collieries which is based on project report. The liability recognised for Defined Benefit Plans is the present value of the
3.5 Borrowing costs Defined Benefit Obligation (DBO) at the reporting date less the fair value of plan
Borrowing costs directly attributable to the acquisition or construction of a assets, together with adjustments for unrecognised actuarial gains or losses
qualifying asset, which takes substantial period of time, are capitalised as a part and past service costs. Management estimates the present value of the DBO
of the cost of that asset, during the period of time that is necessary to complete annually through valuations by an independent actuary using the projected unit
and prepare the asset for its intended use. credit method. Actuarial gains and losses are included in Statement of Profit
and Loss or Other Comprehensive Income of the year.
The Company considers a period of twelve months or more as a substantial
period of time. Remeasurement, comprising of actuarial gains and losses, the effect of the
changes to the asset ceiling (if applicable) and the return on plan assets (excluding
Transaction costs in respect of long-term borrowings are amortised over the interest), is reflected in the balance sheet with a charge or credit recognised in
tenor of respective loans using effective interest method. Other borrowing costs other comprehensive income in the period in which they occur. Remeasurement
are recognised in the Statement of Profit & Loss in the period in which these are recognised in other comprehensive income is reflected immediately in retained
incurred. earnings and will not be reclassified to the statement of profit and loss.
3.6 Inventories Short Term Employee Benefits
Raw materials, Stores & Spares and Finished/Semi-finished products (including Short term employee benefits comprise of employee costs such as salaries,
process scrap) are valued at lower of cost and net realisable value of the items bonus, ex-gratia, annual leave and sick leave which are accrued in the year in
of the respective Plants/Units. In case of identified obsolete/ surplus/ non-moving which the associated services are rendered by employees of the Company.
items, necessary provision is made and charged to revenue. The net realisable Liabilities recognised in respect of short-term employee benefits are measured
value of semi-finished special products, which have realisable value at finished at the undiscounted amount of the benefits expected to be paid in exchange for
stage only, is estimated for the purpose of comparison with cost. the related services.
Residue products and other scrap are valued at estimated net realisable value. Expenditure incurred on Voluntary Retirement Scheme is charged to the Statement
The basis of determining cost is: of Profit and Loss immediately.
Raw materials - Periodical weighted average cost 3.10 Revenue Recognition
Minor raw materials - Moving weighted average cost Revenue is measured at the fair value of consideration received or receivable.
Stores & Spares - Moving weighted average cost Sale of goods
Materials in-transit - at cost Sales include excise duty (upto 30th June, 2017) and are net of Goods and
Finished/Semi-finished products - material cost plus appropriate share of labour, Services Tax (GST) (from 1st July, 2017), rebates and price concessions. Sales
related overheads and duties. are recognised at the time of transfer of risks and rewards of ownership of the
goods to the buyers including the cases where delivery documents are endorsed
3.7 Government Grants
in favour of the buyers. Where the contract prices are not finalised with
Government grants are recognised when there is reasonable assurance that the government agencies, sales are accounted for on provisional basis.
Company will comply with the conditions attaching to them and that the grants Marine export sales are recognised on:
will be received.
i) the issue of bill of lading, or
Government grants are recognised in Statement of Profit and Loss on a systematic
ii) negotiation of export bills upon expiry of laycan period, in cases where
basis over the periods in which the Company recognises as expenses the related
realisation of material value without shipment is provided in the letters of
costs for which the grants are intended to compensate. Where the Grant relates
credit of respective contracts, whichever is earlier.
to an asset value, it is recognised as deferred income, and amortised over the
expected useful life of the asset. Other grants are recognised in the statement of Export incentives under various schemes are recognised as income on certainty
Profit & Loss concurrent to the expenses to which such grants relate/ are intended of realisation.
to cover. The iron ore fines not readily useable/saleable are included in inventory and
Where the Company receives non-monetary grants, the asset and the grant are revenue is recognised on disposal.
recorded gross at fair amounts and released to the income statement over the Interest and dividend income
expected useful life and pattern of consumption of the benefit of the underlying Interest income is reported on an accrual basis using the effective interest
asset. method. Dividends are recognised at the time the right to receive is established.

37
3.11 Adjustment pertaining to Earlier Years updated cost estimates, changes to the estimated lives of operations, changes
Income/Expenditure relating to prior period, which do not exceed 0.5% of Turnover to the timing of closure activities and revisions to discount rates are also
in each case, is treated as income/expenditure of current year. capitalised within "Property, Plant and Equipment". These costs are depreciated
3.12 Claims for Liquidated Damages and Price Escalation over the lives of the assets to which they relate. Any changes in closure provisions
relating to closed operations are charged /credited to the Statement of Profit and
Claims for liquidated damages are accounted for as and when these are
Loss. The amortisation or "unwinding" of the discount applied in establishing
considered recoverable by the Company, on final settlement. These are adjusted
the provisions is charged as Finance Cost.
to the capital cost or recognised in Statement of Profit and Loss, as the case
may be on final settlement of Liquidated damages. 3.17 Provisions, Contingent Liabilities and Contingent Assets
Suppliers' and Contractors' claims for price escalation are accounted for to the Provisions and Contingent Liabilities
extent such claims are accepted by the Company. A Provision is recognised when the Company has present obligation as a result
of a past event and it is probable that an outflow of resources will be required to
3.13 Leases
settle the obligation in respect of which a reliable estimate can be made. Provisions
Company as a Lessee are discounted to their present value, where the time value of money is material.
Finance leases When some or all of the economic benefits required to settle a provision are
Finance leases, which effectively transfer to the lessee substantially all the risks expected to be recovered from a third party, the receivable is recognised as a
and benefits incidental to ownership of the leased item, are capitalised at the separate asset if it is virtually certain that reimbursement will be received and
lower of the fair value and present value of the minimum lease payments at the the amount of the receivable can be measured reliably.
inception of the lease term and disclosed as leased assets. Lease payments Contingent liability is a possible obligation arising from past events and the
under such leases are apportioned between the finance charges and reduction existence of which will be confirmed only by the occurrence or non-occurrence
of the lease liability based on the implicit rate of return. Finance charges are of one or more uncertain future events not wholly within the control of the
charged directly against income. Lease management fees, legal charges and Company or a present obligation that arises from past events but is not recognised
other initial direct costs are capitalised. because it is not possible that an outflow of resources embodying economic
If there is no reasonable certainty that the Company will obtain the ownership benefit will be required to settle the obligations or reliable estimate of the amount
by the end of lease term, capitalised leased assets are depreciated over the of the obligations cannot be made. The Company discloses the existence of
shorter of the estimated useful life of the asset or the lease term. contingent liabilities in Other Notes to Financial Statements.
Operating leases In cases where the possible outflow of economic resources as a result of present
Assets acquired on leases where a significant portion of risk and rewards of obligation is considered improbable or remote, no Provision is recognised or
ownership are retained by the lessor are classified as operating leases. Lease disclosure is made.
rental are charged to statement of profit and loss on straight-line basis except Contingent Assets
where scheduled increase in rent compensate the lessor for expected inflationary Contingent assets usually arise from unplanned or other unexpected events that
costs. give rise to the possibility of an inflow of economic benefits. Contingent Assets
Company as a Lessor are not recognised though are disclosed, where an inflow of economic benefits
Finance leases is probable.
Leases which effectively transfer to the lessee substantially all the risks and 3.18 Income Taxes
benefits incidental to ownership of the leased item are classified and accounted Tax expense recognised in statement of profit and loss comprises the sum of
for as finance lease. Lease rental receipts are apportioned between the finance deferred tax and current tax not recognised in Other Comprehensive Income
income and capital repayment based on the implicit rate of return. Contingent (OCI) or directly in equity.
rents are recognised as revenue in the period in which they are earned.
Current income tax is measured at the amount expected to be paid to the tax
Operating leases authorities in accordance with the Indian Income-tax Act. Current income tax
Leases in which the Company does not transfer substantially all the risks and relating to items recognised outside statement of profit and loss is recognised
rewards of ownership of an asset are classified as operating leases. The either in OCI or in equity.
respective leased assets are included in the balance sheet based on their nature. Deferred income taxes are calculated using the liability method. Deferred tax
Rental income is recognized on straight-line basis over the lease term except liabilities are generally recognised in full for all taxable temporary differences.
where scheduled increase in rent compensates the Company with expected Deferred tax assets are recognised to the extent that it is probable that the
inflationary costs. underlying tax loss, unused tax credits (MAT Credit entitlement) or deductible
3.14 Investment Properties temporary difference will be utilised against future taxable income. Unrecognised
Investment properties are properties held to earn rentals and/or for capital deferred tax assets are re-assessed at each reporting date and are recognised
appreciation. Investment properties are measured initially at cost including to the extent that it has become probable that future taxable profits will allow the
transaction costs. Subsequent to initial recognition, investment properties are deferred tax asset to be recovered.
stated at cost less accumulated depreciation and impairment losses. Any gain Deferred tax assets and liabilities are measured at the tax rates that are expected
or loss on disposal of investment property is determined as the difference between to apply in the year when the asset is realised or the liability is settled, based on
net disposal proceeds and the carrying amount of the property and is recognised tax rates (and tax laws) that have been enacted or substantively enacted at the
in the Statement of Profit and Loss. reporting date. Deferred tax relating to items recognised outside statement of
3.15 Non-current assets held for sale profit and loss is recognised either in OCI or in equity.
Company classifies a non-current asset as held for sale if its carrying amount 3.19 Cash and Cash Equivalents
will be recovered principally through a sale transaction. This condition is regarded Cash and cash equivalents comprise cash on hand and demand deposits,
as met only when the asset is available for immediate sale in its present condition together with other short-term highly liquid investments (original maturity less
and its sale is highly probable. than 3 months) that are readily convertible into known amount of cash and are
Non-current assets including discontinued operations, classified as held for sale subject to an insignificant risk of changes in value.
are measured at the lower of the carrying amounts and fair value less costs to 3.20 Equity and Reserves
sell and presented separately in the financial statements. Once classified as
Share Capital represents the nominal value of shares that have been issued.
held for sale, the assets are not subject to depreciation or amortisation.
Securities premium includes any premium received on issue of Share Capital.
Any profit or loss arising from the sale or re-measurement of discontinued
Components of other equity include the following:
operations is presented as part of a single line item in statement of profit and
loss. • Re-measurement of defined benefit liability comprises the actuarial gain
3.16 Mine Closure or loss from changes in demographic and financial assumptions and return
on plan assets.
Mine Closure Provision includes the dismantling and demolition of infrastructure,
the removal of residual materials and the remediation of disturbed areas for • Bond Redemption Reserve.
mines. This provision is based on all regulatory requirements and related • Other transactions recorded directly in Other Comprehensive Income.
estimated cost based on best available information. Mine closure costs are • Retained earnings include all current and prior period retained profits
provided for in the accounting period when the obligation arises based on the 3.21 Financial Instruments
net present value of the estimated future costs of restoration to be incurred Recognition, initial measurement and de-recognition
during the life of the operation and post closure.
Financial assets and financial liabilities are recognised and are measured initially
The initial close-down and restoration provision is capitalised within "Property, at fair value adjusted by transactions costs, except for those financial assets
Plant and Equipment". Subsequent movements in the close-down and restoration which are classified at Fair Value through Profit & Loss (FVTPL) at inception.
provisions for on-going operations, including those resulting from new
Financial assets are derecognised when the contractual rights to the cash flows
disturbance related to expansions or other activities qualifying for capitalisation,

38
 from the financial asset expire, or when the financial asset and all substantial 3.23 Segment reporting
risks and rewards are transferred. A financial liability is derecognized when it is The Company has 8 operating/reportable segments: the five integrated steel
extinguished, discharged, cancelled or expires. plants and three alloy steel plants, being separate manufacturing units, have
Classification and subsequent measurement of financial assets been considered reportable segments. In identifying these operating segments,
For the purpose of subsequent measurement, financial assets are classified into management generally considers the Company's separately identifiable
the following categories upon initial recognition: manufacturing operations representing its main operations.
• amortised cost Each of these operating segments is managed separately as each requires
• financial assets at fair value through profit or loss (FVTPL) different technologies, raw materials and other resources. All inter-segment
• financial assets at fair value through other comprehensive income (FVOCI) transfers are carried out at arm's length prices based on prices charged to
All financial assets except for those at FVTPL are subject to review for impairment unrelated customers in standalone sales of identical goods or services.
at least at each reporting date. In addition, corporate assets which are not directly attributable to the business
Amortised cost activities of any operating segment are not allocated to a segment. This primarily
applies to the Company's administrative head office and mining operations.
A financial asset is measured at amortised cost using effective interest rates if
both of the following conditions are met: There have been no changes from prior periods in the measurement methods
a) the financial asset is held within a business model whose objective is to used to determine reported segment profit or loss.
hold financial assets in order to collect contractual cash flows; and 3.24 Significant Judgements, Assumptions, and Estimations in applying Accounting
b) the contractual terms of the financial asset give rise on specified dates to Policies
cash flows that are solely payments of principal and interest on the principal 3.24.1 Classification of Leases
amount outstanding. The Company enters into leasing arrangements for various assets. The
The Company's cash and cash equivalents, trade and most other receivables classification of the leasing arrangement as a finance lease or operating lease is
fall into this category of financial instruments. based on an assessment of several factors, including, but not limited to, transfer
Financial assets at FVTPL of ownership of leased asset at end of lease term, lessee's option to purchase
Financial assets at FVTPL include financial assets that are either do not meet the and estimated certainty of exercise of such option, proportion of lease term to
criteria for amortised cost classification or that are equity instruments held for the asset's economic life, proportion of present value of minimum lease payments
trading or that meet certain conditions and are designated at FVTPL upon initial to fair value of leased asset and extent of specialized nature of the leased asset.
recognition. All derivative financial instruments also fall into this category. Assets 3.24.2 Close-down and Restoration Obligations
in this category are measured at fair value with gains or losses recognized in Close-down and restoration costs are normal consequence of mining or
profit or loss. The fair values of financial assets in this category are determined production, and majority of close-down and restoration expenditure are incurred
by reference to active market transactions or using a valuation technique where in the years following the closure of mine, although the ultimate cost to be
no active market exists. incurred is uncertain, the Company estimate their costs using current restoration
Financial assets at FVOCI techniques.
FVOCI financial assets are either debt instruments that are managed under hold 3.24.3 Recognition of Deferred Tax Assets
to collect and sell business model or are non-trading equity instruments that are The extent to which deferred tax assets can be recognized is based on an
irrevocable designated to this category at inception. assessment of the probability of the Company's future taxable income against
FVOCI financial assets are measured at fair value. Gains and losses are recognized which the deferred tax assets can be utilized. In addition, significant judgement
in other comprehensive income, except for interest and dividend income, is required in assessing the impact of any legal or economic limits.
impairment losses and foreign exchange differences on monetary assets, which 3.24.4 Inventories
are recognized in statement of profit or loss. The Company estimates the cost of inventories taking into account the most
Classification and subsequent measurement of financial liabilities reliable evidence, such as cost of materials and overheads considered attributable
Financial liabilities are measured subsequently at amortized cost using the to the production of such inventories including actual cost of production, etc.
effective interest method, except for financial liabilities held for trading or Management also estimates the net realisable values of inventories, taking into
designated at FVTPL, that are carried subsequently at fair value with gains or account the most reliable evidence available at each reporting date. The future
losses recognized in profit or loss. All derivative financial instruments are realisation of these inventories may be affected by future technology or other
accounted for at FVTPL. market-driven changes that may reduce future selling prices.
Embedded Derivatives 3.24.5 Defined Benefit Obligation (DBO)
Derivatives embedded in non-derivative host contracts are treated as separate Employee benefit obligations are measured on the basis of actuarial assumptions
derivatives when they meet the definition of a derivative, their risks and which include mortality and withdrawal rates as well as assumptions concerning
characteristics are not closely related to those of the host contracts and the future developments in discount rates, medical cost trends, anticipation of future
contracts are not measured at FVTPL. salary increases and the inflation rate. The Company considers that the
Impairment of Financial Assets assumptions used to measure its obligations are appropriate. However, any
In accordance with Ind AS 109, the Company applies Expected Credit Loss changes in these assumptions may have a material impact on the resulting
(ECL) model for measurement and recognition of impairment loss for financial calculations.
assets. 3.24.6 Fair Value Measurements
ECL is the difference between all contractual cash flows that are due to the The Company applies valuation techniques to determine the fair value of financial
Company in accordance with the contract and all the cash flows that the Company instruments (where active market quotes are not available) and non-financial
expects to receive. assets. This involves developing estimates and assumptions consistent with
Trade Receivables the market participants to price the instrument. The Company's assumptions
The Company applies approach as specified in Indian Accounting Standards are based on observable data as far as possible, otherwise on the best information
(Ind AS) 109 Financial Instruments, which requires expected lifetime losses to available. Estimated fair values may vary from the actual prices that would be
be recognised from initial recognition of receivables. achieved in an arm's length transaction at the reporting date.
Other Financial Assets 3.24.7 Provisions and Contingencies
For recognition of impairment loss on other financial assets and risk exposure, The assessments undertaken in recognising provisions and contingencies have
the Company determines whether there has been a significant increase in the been made in accordance with Indian Accounting Standards (Ind AS) 37,
credit risk since initial recognition. 'Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the
likelihood of the contingent events is applied best judgement by management
Offsetting financial instruments
regarding the probability of exposure to potential loss.
Financial assets and liabilities are offset and the net amount reported in the
3.24.8 Mine Closure and Restoration Obligations
balance sheet when there is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net basis or realise the asset and Environmental liabilities and Asset Retirement Obligation (ARO): Estimation of
settle the liability simultaneously. The legally enforceable right must not be environmental liabilities and ARO require interpretation of scientific and legal
contingent on future events and must be enforceable in the normal course of data, in addition to assumptions about probability and future costs.
business and in the event of default, insolvency or bankruptcy of the counterparty. 3.24.9 Useful lives of depreciable/ amortisable assets (tangible and intangible)
3.22 Investments in subsidiaries, joint ventures and associates Management reviews its estimate of the useful lives of depreciable/ amortisable
The Company has accounted for its subsidiaries and associates, joint ventures assets at each reporting date, based on the expected utility of the assets.
at cost in its standalone financial statements in accordance with Ind AS- 27, Uncertainties in these estimates relate to actual normal wear and tear that may
Separate Financial Statements. change the utility of plant and equipment.

39
 Notes to the Standalone Financial Statements for the year ended 31st March, 2018
4: PROPERTY, PLANT AND EQUIPMENT
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2017 2018 2017 Year 2018 2018 2017

A. Plant, Mines & Others

Land
-Freehold land 272.38 19.26 - 291.64 0.87 - - 0.87 290.77 271.51
-Leasehold land 979.78 297.07 0.89 1275.96 216.68 68.11 0.25 284.54 991.42 763.10
Buildings and related equipments 5166.29 131.60 0.37 5297.52 1642.01 151.27 0.10 1793.18 3504.34 3524.28
Plant and machinery
-Steel plant 66229.31 10496.73 524.78 76201.26 26347.98 2345.88 347.34 28346.52 47854.74 39881.28
-Others - owned 3029.76 113.48 82.97 3060.27 1953.94 121.13 71.85 2003.22 1057.05 1075.82
-Others - Leasehold (Refer note (ii)) 1557.23 59.63 - 1616.86 657.37 106.03 - 763.40 853.46 899.86
Furniture and fixtures 125.22 4.58 (0.83) 130.63 91.91 5.82 0.19 97.54 33.09 33.31
Vehicles 1327.44 36.50 8.89 1355.05 756.26 74.21 8.39 822.08 532.97 571.18
Office equipments 60.29 1.48 0.58 61.19 47.69 2.74 0.50 49.93 11.26 12.60
Miscellaneous articles 318.75 30.10 1.07 347.78 209.84 13.93 0.85 222.92 124.86 108.91
Roads, Bridges & Culverts 343.16 58.61 0.55 401.22 229.19 26.68 (0.05) 255.92 145.30 113.97
Water Supply & Sewerage 556.79 73.97 1.10 629.66 324.66 20.19 0.87 343.98 285.68 232.13
EDP Equipments 414.87 11.94 6.72 420.09 356.10 14.63 5.95 364.78 55.31 58.78

40
Railway Lines and Sidings 709.38 100.44 0.10 809.72 233.86 18.24 0.11 251.99 557.73 475.52
Sub-total 'A' 81090.65 11435.39 627.19 91898.85 33068.36 2968.86 436.35 35600.87 56297.98 48022.25
Figures for the previous year 74356.13 7025.80 291.32 81090.61 30709.10 2586.47 227.21 33068.36 48022.25
B. Social Facilities
Land
-Freehold land 10.88 0.01 - 10.89 - - - - 10.89 10.88
-Leasehold land 9.39 0.61 - 10.00 5.95 0.13 - 6.08 3.92 3.44
Buildings and related equipments 683.77 61.75 0.44 745.08 317.03 17.95 0.37 334.61 410.47 366.74
Plant and machinery - others 149.46 28.34 1.69 176.11 99.50 6.62 1.23 104.89 71.22 49.96
Furniture and fixtures 26.88 0.47 0.60 26.75 19.51 1.26 0.30 20.47 6.28 7.37
Vehicles 11.23 0.20 0.16 11.27 9.80 0.34 0.11 10.03 1.24 1.43
Office equipments 4.53 0.10 0.12 4.51 3.72 0.28 0.11 3.89 0.62 0.79
Miscellaneous articles 226.80 6.46 2.03 231.23 135.31 11.63 1.76 145.18 86.05 91.51
Roads, Bridges & Culverts 130.90 5.08 0.02 135.96 85.11 13.50 0.01 98.60 37.36 45.79
Water Supply & Sewerage 226.54 74.31 - 300.85 123.95 7.32 - 131.27 169.58 102.59
EDP equipments 12.02 0.17 0.81 11.38 9.91 0.36 0.46 9.81 1.57 2.11
Sub-total 'B' 1492.40 177.50 5.87 1664.03 809.79 59.39 4.35 864.83 799.20 682.61
Figures for the previous year 1437.90 62.59 8.09 1492.40 761.35 54.59 6.15 809.79 682.61
C. Property, plant and equipment retired from active use
Assets retired from active use 57.17 35.27 33.53 58.91 - - - - 58.91 57.17
Figures for the previous year 55.29 9.02 7.14 57.17 - - - - 57.17
Total ('A'+'B'+C') 82640.22 11648.16 666.59 93621.79 33878.15 3028.25 440.70 36465.70 57156.09 48762.03
Figures for the previous year 75849.32 7097.41 306.55 82640.18 31470.45 2641.06 233.36 33878.15 48762.03
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
4: PROPERTY, PLANT AND EQUIPMENT (CONTD.)
Note : Allocation of Depreciation of PPE, Intangible assets and Investment property

(` crore)
st
As at 31 At at 31st
March, 2018 March, 2017

(a) Charged to Profit & Loss Account 3064.92 2679.95

(b) Charged to expenditure during construction 4.15 5.12

3069.07 2685.07

(i) Contractual obligations

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

(ii) Land:

(a) Includes 68,019.40 acres (67,718.76 acres as on 31st March, 2017) owned / possessed / taken on lease by the Company, in respect of which title/lease deeds are pending
for registration.

(b) Includes 34,576.05 acres (34,061.08 acres as on 31st March, 2017) in respect of which title is under dispute.

(c) 9,367.80 acres (9007.46 acres as on 31st March, 2017) transferred/agreed to be transferred or made available for settlement to various Joint Ventures / Central / State / Semi-
Government authorities, in respect of which conveyance deeds remain to be executed/registered.

(d) 6,187.95 acres (6384.17 acres as on 31st March, 2017) given on lease to various agencies/employees/ex-employees.

(e) Includes 4070.09 acres (4,436.70 acres as on 31st March, 2017) under unauthorised occupation.

(f) 1,762.92 acres (1,762.92 acres as on 31st March, 2017) of Land which is not in the actual possession, shown as deemed possession.

(g) ` 63.13 crore is lying under deposits (in respect of land already acquired) with the District & Sessions Judge, Bokaro during the year 2007 towards compensation payable to
land losers.

(h) Vide Notification of Acquisition in the Gazette of India (Extraordinary) bearing No S.O. 1309(E) dated 08.06.2012 and No. S.O. 2484E dated 13.10.2012, National Highway
Authority of India Ltd.(NHAI) has acquired 12.19 acres.

(i) Includes 21.13 acres freehold land notified for acquisition by Government of Jharkhand vide Gazette notification no. 42 & 43 dated 26th August, 2009, determining compensation
of ` 13.91 crore only for 15.62 acres. Management proposes to contest the same with appropriate authorities. Pending further action in the matter, no effect of above has been
given in the accounts.

(iii) Other Assets:

(a) Buildings include net block of ` 21.23 crore as on 31st March, 2018 (` 21.18 crore as on 31st March, 2017) for which conveyance deed is yet to be registered in the name of
the Company.

(b) Includes 7107 (7038 as on 31st March, 2017), residential quarters/houses under unauthorised occupation.

41
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

As at 31st March, 2018 As at 31st March, 2017

5: CAPITAL WORK IN PROGRESS

Steel Plants & Units 18168.23 22922.89
Township 91.56 107.49
Ore Mines and Quarries 314.32 399.14
18574.11 23429.52
Less: Provisions 215.26 18358.85 199.32 23230.20
Construction stores and spares 24.65 37.49
Less: Provision for non-moving items 3.18 21.47 3.39 34.10
Expenditure during construction pending allocation (Note 5.1) 15.11 11.09
18395.43 23275.39

5.1: EXPENDITURE DURING CONSTRUCTION PENDING ALLOCATION

Opening balance (a) 11.09 7.91

Expenditure incurred during the year

Employees' Remuneration & Benefits

Salaries & Wages 90.30 121.40

Company's contribution to provident fund 3.86 10.86

Travel concession 2.96 3.08

Welfare expenses 0.07 0.11

Gratuity 3.53 100.72 0.71 136.16

Other expenses

Technical consultants' fees & know-how 4.47 8.56

Power & Fuel 76.29 134.97

Other expenses 6.19 6.68

Interest & Finance charges 668.52 581.90

Depreciation 4.15 759.62 5.12 737.23

860.34 873.39

Less: Recoveries

Interest Earned 0.27 0.47

Liquidated damages 0.22 2.49

Hire charges 0.45 0.35

Sundries 8.86 9.80 17.99 21.30

Net expenditure during the year (b) 850.54 852.09

Total (a)+(b) 861.63 860.00

Less : Amount allocated to Property, Plant 846.52 848.91

and Equitpment / Capital Work-in-progress

Balance carried forward 15.11 11.09

42
 Notes to the Standalone Financial Statements for the year ended 31st March, 2018
6: INVESTMENT PROPERTIES
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2017 2018 2017 Year 2018 2018 2017

A. BUILDINGS
Buildings 1.45 - - 1.45 0.59 0.03 - 0.62 0.83 0.86
Sub-total 'A' 1.45 - - 1.45 0.59 0.03 - 0.62 0.83 0.86
Figures for the previous year 1.45 - - 1.45 0.57 0.02 - 0.59 0.86

(i) Contractual obligations

There are no contractual obligation to purchase, construct or develop investment property or for its repair, maintenance or enhancement.
(ii) Amount recognised in profit and loss for investment properties
(` crore)
As at 31st At at 31st
March, 2018 March, 2017
Rental income 1.52 1.30
Direct operating expenses that generated rental income* - -
Direct operating expenses that did not generate rental income* - -

43
Profit from leasing of investment properties before depreciation 1.52 1.30
Depreciation 0.03 0.02
Profit from leasing of investment properties 1.49 1.28
*Direct expenses in relation to investment properties cannot be separately identified and are expected to be insignificant.
(iii) Leasing arrangements
Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Minimum lease payment receivable under non-cancellable leases
of investment property are as follows:
(` crore)
As at 31st At at 31st
March, 2018 March, 2017
Within one year 0.04 0.02
Later than one year but not later than 5 years 0.07 0.02
Later than 5 years 0.01 0.07
0.12 0.11
(iv) Fair value
Fair value of Investment properties as on 31st March, 2018 is `20.53 crore (`21.66 crore as on 31st March, 2017)
(v) Estimation of fair value
The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety
of sources including:
a) Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences.
b) Discounted cash flow projections based on reliable estimates of future cash flows.
c) Circle rate of the property as provided by State Government.
 Notes to the Standalone Financial Statements for the year ended 31st March, 2018
7: INTANGIBLE ASSETS
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2017 2018 2017 Year 2018 2018 2017

A. PLANTS, MINES & OTHERS

Computer Software* 101.20 2.15 0.07 103.28 97.19 1.58 (0.04) 98.81 4.47 4.01
Mining Rights 1822.30 7.47 37.47 1792.30 303.83 39.18 0.84 342.17 1450.13 1518.50
Sub-total 'A' 1923.50 9.62 37.54 1895.58 401.02 40.76 0.80 440.98 1454.60 1522.51
Figures for the previous year 1903.76 20.35 0.58 1923.53 357.68 43.93 0.59 401.02 1522.51
B. SOCIAL FACILITIES
Computer Software* 0.62 - - 0.62 0.56 0.03 - 0.59 0.03 0.07
Sub-total 'B' 0.62 - - 0.62 0.56 0.03 - 0.59 0.03 0.07
Figures for the previous year 0.62 0.01 - 0.63 0.50 0.06 - 0.56 0.07
Total ('A'+'B') 1924.12 9.62 37.54 1896.20 401.58 40.79 0.80 441.57 1454.63 1522.58
Figures for the previous year 1904.38 20.36 0.58 1924.16 358.18 43.99 0.59 401.58 1522.58

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

44
**All ammortization changes are included within depreciation and ammortization expenses.
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
8. INVESTMENTS
No of Shares Amount (` in crore)
As at 31st As at 31st As at 31st As at 31st
March, 2018 March, 2017 March, 2018 March, 2017

Investments carried at cost

In Subsidiaries
SAIL Refractory Company Limited 50,000 50,000 0.05 0.05
SAIL- Jagdishpur Power Plant Limited 50,000 50,000 0.05 0.05
SAIL Sindri Projects Limited 50,000 50,000 0.05 0.05
Chattisgarh Mega Steel Limited 37,000 - 0.04 -
0.19 0.15
In Associates (unquoted)
Almora Meganasite Limited (Face value- `100/share) 40,000 40,000 0.40 0.40
0.40 0.40
In Joint ventures (unquoted)
NTPC- SAIL Power Company Limited 49,02,50,050 49,02,50,050 490.25 490.25
Bokaro Power Supply Company Pvt Limited 12,40,25,000 12,40,25,000 124.03 124.03
Bhilai Jaypee Cement Limited 9,87,18,048 9,87,18,048 52.51 52.51
SAIL- Bansal Service Centre Limited 32,00,000 32,00,000 3.20 3.20
MJunction services limited 40,00,000 40,00,000 4.00 4.00
S&T Mining Company Private Limited 1,29,41,400 1,29,41,400 12.94 12.94
SAIL MOIL Ferro Alloy Pvt. Ltd. 1,00,000 1,00,000 0.10 0.10
International Coal Ventures Pvt. Ltd. 69,37,59,279 59,37,59,279 693.76 593.76
SAIL-SCL Kerala Ltd. 1,30,17,801 1,30,17,801 18.75 18.75
SAIL-SCI Shipping Private Limited 1,00,000 1,00,000 0.10 0.10
SAIL RITES Bengal Wagon Industry Pvt. Ltd. 2,40,00,000 2,40,00,000 24.00 24.00
SAIL-KOBE Iron India Pvt. Ltd. 2,50,000 2,50,000 0.25 0.25
Prime Gold -SAIL JVC Ltd. 46,80,000 46,80,000 4.68 4.68
North Bengal Dolomite Ltd (Face value-`100/share) 97,900 97,900 0.98 0.98
Romelt SAIL ( India ) Limited 63,000 63,000 0.06 0.06
Bastar Railway Pvt Ltd 10,500 - 0.01 -
NMDC SAIL Ltd 24,500 - 0.02 -
SAIL-Bengal Alloy Castings Pvt. Ltd. 10,000 10,000 0.01 0.01
VSL-SAIL JVC LIMITED 12,97,780 12,97,780 1.30 1.30
1,430.95 1,330.92
Total (A) 1,431.54 1,331.47
Investments carried at fair value through other comprehensive income
Quoted equity
HDFC Limited ( Face value - ` 2/share) 60,000 60,000 10.95 9.00
HDFC Bank Limited ( Face value - ` 2/share) 2,500 2,500 0.47 0.36
ICICI Bank Limited ( Face value - ` 2/share) 1,57,300 1,43,000 4.38 3.94
15.80 13.30
Unquoted equity
TRL Krozaki Refractories Limited 22,03,150 22,03,150 34.05 29.93
Indian Potash Limited 3,60,000 3,60,000 17.57 13.43
Haridaspur Paradeep Railway Co Ltd 50,00,000 50,00,000 5.00 5.00
Cement & Allied Products (Bihar) Limited 2 2 - -
Chemical & Fertilizer Corporation (Bihar) Limited 1 1 - -
Bhilai Power Supply Company Limited 5 5 - -
MSTC Limited 3,20,000 1,60,000 4.70 6.66
IISCO Ujjain Pipe & Foundary Company Limited 30,00,000 30,00,000 3.00 3.00
(under liquidation)#
UEC SAIL Information Technology Limited* 1,80,000 1,80,000 0.18 0.18
Bihar State Finance Corporation (Face value `100/share) 500 500 0.01 0.01
64.51 58.21

45
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
8. INVESTMENTS (Contd.)
No of Shares Amount (` in crore)
As at 31st As at 31st As at 31st As at 31st
March, 2018 March, 2017 March, 2018 March, 2017

In Co-operative society

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

Bokaro Steel City Central Consumers' Co-operative Society 250 250 0.00 0.00

NMDC Meghahatuburu Employees' Co-operative society (Face value ` 100/share) 25 25 0.00 0.00

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

Bolani Ores Employees' Consumer co-operative society limited (Face value ` 25/share) 200 200 0.00 0.00

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

0.18 0.18

Total (B) 80.49 71.69

Grand total (A+B) 1,512.03 1,403.16

Provision for impairment in the value of investments 20.73 7.68

Net investment 1,491.30 1,395.48

Aggregate amount of quoted investments 15.80 13.30

(market value thereof)

Aggregate amount of unquoted investments 1,496.23 1,389.86

Aggregate amount of impairment in value of investments 20.73 7.68

1,491.30 1,395.48

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

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

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

9: TRADE RECEIVABLES - NON CURRENT

(` crore)
st
As at 31 As at 31st
March, 2018 March, 2017

(Unsecured, considered good unless otherwise stated)

Unsecured*

Considered good - -

Considered doubtful 7.83 7.83

7.83 7.83

Provision for doubtful receivables 7.83 7.83

* Receivables due from directors and officers of the Company is nil (previous year nil) - -

10: LOANS - NON CURRENT

(Unsecured, considered good unless otherwise stated)*

Security deposits 101.81 110.65
Loan to employees 124.53 157.40
Loan to others 225.14 185.49
451.48 453.54
Less : Provision for doubtful loans 0.02 0.02
451.46 453.52
* Receivables include amounts due from Directors - nil (previous year nil)

46
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

11: OTHER FINANCIAL ASSETS - NON CURRENT

Derivative assets 76.73 46.59

Advance for purchase of shares 3.54 104.27

Claims recoverable 7.89 -

Receivables other than trade 76.95 103.46

Receivables from employees 0.09 0.12

Loans and advances to related parties 10.53 10.53

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

Fixed deposits with maturity period more than 12 months 0.19 -

173.39 262.44

Less, Provision for doubtful assets 7.21 0.02

166.18 262.42

12: DEFERRED TAX ASSETS (NET)

Tax effect of items constituting deferred tax liabilities

Diff between book and tax depreciation 8996.19 7450.30

Amortisation of financial assets/liabilities 28.39 31.39

Fair value adjustment through OCI 10.46 9035.04 8.88 7490.57

Tax effect of items constituting deferred tax assets

Retirement benefits 8.73 107.54

Finance lease obligations 85.64 75.83

Derivative adjustments 54.81 84.35

Unpaid taxes and duties to be allowed on payment 1156.38 1122.61

Losses available for offsetting against future taxable income 9985.34 8563.67

Others 877.58 12168.48 491.41 10445.41

Tax credit (minimum alternative tax) 1051.83 1051.00

Deferred tax (assets) /liabilities (net) 4185.27 4005.84

47
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
12: DEFERRED TAX ASSETS (CONTD.)
Deferred taxes arising from temporary differences and unused tax losses for year ended 31st March, 2018 are summarized as follows:
(` crore)

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

April 1, 2017 in profit or in other March 31,
loss comprehensive 2018
income

Tax effect of items constituting deferred tax liabilities

Difference between book and tax depreciation 7450.30 1545.89 - 8996.19
Amortisation of financial assets/liabilities 31.39 (3.00) - 28.39
Fair value adjustment through OCI 8.88 - 1.58 10.46
7490.57 1542.89 1.58 9035.04
Tax effect of items constituting deferred tax assets
Retirement benefits 107.54 (2.59) (96.22) 8.73
Finance lease obligations 75.83 9.81 - 85.64
Derivative adjustments 84.35 (29.54) - 54.81
Unpaid taxes and duties to be allowed on payment 1122.61 33.77 - 1156.38
Losses available for offsetting against future taxable income 8563.67 1421.67 - 9985.34
Tax credit (minimum alternative tax) 1051.00 0.83 - 1051.83
Others 491.41 386.17 - 877.58
11496.41 1820.12 (96.22) 13220.31
Deferred tax (assets) /liabilities (net) (4,005.84) (277.23) 97.80 (4,185.27)

The Company is having accumulated business losses (Including Investment Allowance) of `28,575.26 crore (Previous year- `24,744.77 crore) [including accumulated unabsorbed
depreciation of `18,823.78 crore (Previous Year - `15,057.93 crore)] and MAT credit of `1,051.83 crore as on 31st March, 2018 as per the provisions of the Income Tax Act, 1961. The
unabsorbed business losses amounting to `9,751.48 crore (Previous Year - `9,686.84 crore) are available for offset for maximum period of eight years from the incurrence of loss and
unused tax (MAT) credit will be available for offset within maximum period of fifteen years.
In view of the various measures being implemented by the Government for upliftment of 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. Consequently, the
Company will be able to earn sufficient future taxable profits to adjust the accumulated business losses/unabsorbed depreciation and unused MAT credit.
Accordingly, deferred tax asset of `3,407.55 crores on acccumulated business losses (inlcuding `55.13 crores during the year ended 31st March, 2018) and MAT credit of `1,051.83
crores, has been recognised as on 31st March, 2018.

(` crore)
st
As at 31 As at 31st
March, 2018 March, 2017

13: CURRENT TAX ASSETS / LIABILITIES (NET)

Current tax assets

Advance income tax (net of provision) 190.31 235.81

190.31 235.81

14: OTHER ASSETS - NON CURRENT

Advances to contractors & suppliers 341.37 280.46

Advances others 4.18 4.18

Deposit with Government authorities 646.94 641.95

Prepaid expenses 25.43 34.12

Capital advances 133.76 192.51

Less: Provision for doubtful capital advances 11.19 122.57 1.01 191.50

1140.49 1152.21

Less: Provision for doubtful other assets 80.39 72.09

1060.10 1080.12

48
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

15: INVENTORIES*
Stores & spares
Production 2154.53 1843.43
Fuel Stores 84.32 91.72
Others 24.54 27.36
2263.39 1962.51
Add: In-transit 155.02 114.48
2418.41 2076.99
Less: Provision for non moving/obsolete items 233.97 2184.44 212.36 1864.63
Raw Material
Raw material 4593.35 2584.23
Add: In-transit 2592.85 1471.24
7186.20 4055.47
Less: Provision for unusable materials 17.64 7168.56 15.80 4039.67
Finished / Semi-finished products
Finished goods 4430.95 5822.05
Work in progress 3212.72 7643.67 3985.00 9807.05
16996.67 15711.35
*Valued as per accounting policy No. 3.6

16: TRADE RECEIVABLES - CURRENT

(Unsecured, considered good unless otherwise stated)

Unsecured*
Considered good 3869.94 2921.69
Considered doubtful 190.02 176.48
4059.96 3098.17
Provision for doubtful receivables 190.02 176.48
3869.94 2921.69
* Receivables due from directors and officers of the Company is nil (previous year nil)

17 (I): CASH AND CASH EQUEVALENTS

Cash and stamps on hand 0.04 0.07

Cheques in hand 77.60 109.92
Balance with Banks
Current accounts 1.81 10.76
Term deposits with original maturity upto 3 months - 0.18
Term deposits as per court orders with maturity upto 3 months - 1.81 - 10.94
79.45 120.93

17 (II): OTHER BANK BALANCES

Earmarked bank balances 168.30 159.31

Unpaid dividend accounts 6.21 8.53
Fixed deposits with maturity for more than 3 months but less than 12 months 0.10 0.32
174.61 168.16

49
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

18: LOANS - CURRENT

(Unsecured, considered good unless otherwise stated)*

Security deposits 8.48 10.49

Loan to employees 60.92 58.15

Loan to related parties 7.00 7.00

Loan to others 1.97 1.33

78.37 76.97

Less: Provision for doubtful loans 14.96 15.50

63.41 61.47

* Receivable includes amounts due from Directors - nil (previous year -nil)

19: OTHER FINANCIAL ASSETS - CURRENT

Derivative assets 47.66 180.95

Claims recoverable 715.85 771.45
Receivables other than trade 311.17 245.38
Receivables from employees 6.76 6.88
Bills receivable 1787.27 1072.99
Advances to related parties 23.66 23.66
Less: Provision for doubtful related parties advances 13.42 10.24 1.39 22.27
2878.95 2299.92
Less Provision for doubtful assets 91.75 32.07
2787.20 2267.85

20: OTHER ASSETS - CURRENT

Gold coins in hand 0.23 0.23

Advances to contractors & suppliers 254.67 273.98
Advance others 851.03 1105.70 828.89 1102.87
Deposit with Government authorities 2511.82 2519.05
Deposits - GST 33.80 -
GST receivable 1813.70 -
Prepaid expenses 24.26 36.63
Claims receivable 184.46 725.54
Export incentive receivables 45.68 41.26
5719.65 4425.58
Less: Provision for doubtful other assets 85.23 143.55
5634.42 4282.03

21: ASSETS CLASSIFIED AS HELD FOR SALE

Assets classified as held for sale 32.50 11.94

32.50 11.94
(i) On floatation of tender for sale of items of Property, Plant and Equipment, it is considered highly likely that such assets will be sold within next 12 months and such assets are
treated as ‘Assets classified as held for sale’
(ii) Plant & Machinery classified as held for sale during the reporting period was measured at the lower of its carrying amount and fair value less costs to sell at the time of the
reclassification. The fair value of the plant & machinery was determined using the comparable value approach. This is a level 3 measurement as per the fair value hierarchy set
out in fair value measurement disclosures. The key inputs under this approach is the metal price in the market.

50
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
22: EQUITY SHARE CAPITAL
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

Authorised capital

Equity shares of ` 10 each

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

Issued and subscribed capital & fully paid-up

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

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

Particulars As at 31st As at 31st

March, 2018 March, 2017

Numbers Amount Numbers Amount

(` in crore) (` in crore)

Equity shares with voting rights

Balance at the beginning of the year 4130407654 4130.41 4130392654 4130.39

Shares converted into shares with voting Rights during the year - - 15000 0.02

Shares bought back during the year - - - -

Balance at the end of the year 4130407654 4130.41 4130407654 4130.41

Equity shares without voting rights *

Balance at the beginning of the year 117635 0.12 132635 0.14

Shares Issued during the year - - - -

Less: Shares converted into shares with voting Rights during the year - - (15000) (0.02)

Balance at the end of the year 117635 0.12 117635 0.12

Total Equity shares outstanding 4130525289 4130.53 4130525289 4130.53

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 event of liquidation of the Company.

iii) The Company does not have a holding company.

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

Name of Shareholder As at 31st As at 31st

March, 2018 March, 2017

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

held held

President of India 3097767449 75.00 3097767449 75.00

LIC of India 395451358 9.57 441874667 10.70

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

51
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
23: OTHER EQUITY
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

Reserves & Surplus

Capital Reserve

Opening balance 1.75 1.75

Additions during the year - -

Less: Utilisation during the year - 1.75 - 1.75

Securities Premium Reserve

Opening balance 235.10 235.10

Changes during the year - 235.10 - 235.10

Bond Redemption Reserve

Opening balance 1973.64 1449.96

Transfer from retained earnings 606.80 607.77

Transfer to retained earnings 239.75 2340.69 84.09 1973.64

General Reserve

Opening balance 5095.13 5095.13

Additions during the year - -

Less: Utilisation during the year - 5095.13 - 5095.13

Retained Earnings

Opening balance 24570.11 28283.65

Add: Net Profit/(Loss) for the year (481.71) (2,833.24)

Add: Other comprehensive Income/(Loss) 177.53 (356.62)

Add: Transfer from Bond Redemption Reserve 239.75 84.09

Less: Transfer to Bond Redemption Reserve 606.80 607.77

Less: Transfer to General Reserve - 23898.88 - 24570.11

Other Comprehensive Income

Equity Instruments through Other Comprehensive Income

Opening balance 2.80 (0.22)

Change in fair value of FVOCI equity instruments 8.79 3.02

Deferred tax - 11.59 - 2.80

Total other equity 31583.14 31878.53

Nature and purpose of other reserves

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

Securities premium reserve

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

Bond redemption reserve

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

Other Comprehensive Income (OCI) reserve

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

52
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
24. BORROWINGS - NON CURRENT
(` crore)

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

SECURED
Redeemable Non-Convertible Bonds
Rate of Interest Maturity Date Call/Put option (yr) SECURITY
REF
9.35% 9/Sep/2026 12/nil (a) 455.00 455.00
9.00% 14/Oct/2024 (a) 1000.00 1000.00
8.70% 25/Aug/2024 (a) 300.00 300.00
8.30% 3/Aug/2023 (a) 800.00 800.00
8.30% 1/Aug/2023 (a) 1200.00 1200.00
8.35% 19/Nov/2022 (a) 1185.00 1185.00
9.30% 23/Aug/2021 (a) 400.00 400.00
8.55% 11/Aug/2021 (a) 700.00 700.00
8.27% 25/Aug/2020 (a) 265.00 265.00
8.72% 30/Apr/2020 (a) 660.00 660.00
8.75% 23/Apr/2020 (a) 545.00 545.00
8.65% 1/Feb/2020 5/nil (a) 242.00 242.00
8.30% 21/Jan/2020 (a) 500.00 500.00
8.65% 30/Dec/2019 (a) 450.00 450.00
8.50% 7/Dec/2019 (a) 120.00 120.00
8.60% 19/Nov/2019 (a) 335.00 335.00
8.75% 15/Sep/2019 ( b,d ) 100.00 100.00
8.80% 22/Jun/2019 (a) 825.00 825.00
7.70% 11/May/2019 5/5 (a) 25.00 25.00
8.90% 1/May/2019 5/nil (b) 950.00 950.00
8.80% 26/Oct/2018 ( b,c ) 98.00 112.00
8.18% 10/Aug/2018 (a) - 1000.00
8.25% 27/Jul/2018 (a) - 500.00
8.35% 9/Jun/2018 (a) - 420.00
9.30% 25/May/2018 ( a,k ) 288.00 360.00
8.25% 6/May/2018 3/3 (a) - 245.00
7.95% 9/Apr/2018 (a) - 670.00
Total Bonds 11443.00 14364.00
Term Loans from banks
Rupee loans (j) 14156.00 2500.00
Foreign currency loans (j) 2247.26 -
27846.26 16864.00
UNSECURED
Foreign currency loan
1 KFW, Germany (e) 358.48 327.06
2 Sumitomo Mitsubishi Banking Corporation (f) - 0.01
3 Natexis Banque (g) 15.01 14.75
4 Mizuho Coprorate Bank ltd (h) - 322.12
Steel development fund (i) 204.16 204.16
577.65 868.10
Long term maturities of finance lease obligations 1353.25 1355.38
Total Non Current Loans 29777.16 19087.48
No loans have been guaranteed by the directors and others.
There is no default as on the balance sheet date in repayment of borrowings and interest thereon.
All bonds are repayable on the maturity date unless otherwise stated.

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

a) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad, Gujarat and Company's Plant & Machinery, including the
land on which it stands, pertaining to IISCO Steel Plant (ISP).
b) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad, Gujarat and Company's Plant & Machinery, including the land
on which it stands, pertaining to Durgapur Steel Plant. (DSP).
c) Redeemable in 12 equal yearly instalments of ` 14 crore each starting w.e.f 26th October, 2014. Instalment payable on 26th Oct, 2018 has been shown in Other Current Liabilities.
d) Redeemable in 3 equal instalments of ` 50 crore each on 15th September of 2014, 2019 and 2024.
e) The soft basis of the loan was drawn in 3 tranches stated as 1(a), 1(b) and 1( c) at an interest rate of 8.75% p.a. The Interest on 1(a) is 0.75% p.a and balance 8% is towards meeting Exchange fluctuation (4%)
and Pollution control schemes (4%). In case of 1 (b) the Interest is 0.75% p.a and balance 8.0% p.a is towards periphery development. The Interest on 1(c) is 3.66% p.a and the balance 5.09% p.a is towards
meeting periphery development. The principal and interest is repayable half yearly. The loan is guaranteed by Government of India.
f) The loan is repayable in 3 equal yearly instalments on 16th November starting from 2015 at an interest rate of 6 month LIBOR +1.06%. Interest is paid half yearly.
g) The loan is repayable by 2030. The principal and interest is paid half yearly, guaranteed by Government of India.
h) The loan is repayable in 3 equal yearly instalments on 21st December starting from 2016 at an interest rate of 6 month LIBOR +1.75%. Interest is paid half yearly.
i) Terms of repayment is to be decided by SDF management Committee.
j) Secured by charges ranking pari-pasu on the present and future movable plant and machinery of BSL & BSP to the extent of loan. SBIECB loan is repayable in 4 equal installments at the end of 4th, 5th, 6th and 7th
from the first draw-down i.e. 25th Sept 2017.
k) Redeemable in 5 equal yearly instalments starting w.e.f 25th May, 2018. Installment payable on 25th May, 2018 has been shown in current liabilities.

53
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

25: TRADE PAYABLES - NON CURRENT

Due to micro, small and medium enterprise (refer note 48.2) - -

Amount payable to contractors/suppliers/others 6.38 7.36
6.38 7.36

26: OTHER FINANCIAL LIABILITIES - NON CURRENT

Employees related dues 430.68 458.39

Interest Accrued but not due on borrowings 551.46 580.25
Other payables 197.22 327.29
1179.36 1365.93

27: PROVISIONS - NON CURRENT

Provision for gratuity - 80.75

Provision for accrued leave liability 2476.95 2436.37
Provision for post retirement medical & settlement benefits 974.69 931.02
Provision for long term service award 20.90 19.98
Provision for mines closure 61.61 53.94
Other provisions 439.13 71.88
3973.28 3593.94

28: OTHER LIABILITIES - NON CURRENT

Deferred Income* 138.33 151.29

138.33 151.29
*Government grants
Opening balance 27.79 26.95
Additions - 2.12
Released to Statement of Profit and Loss - (1.28)
27.79 27.79

*Deferred income inlcudes award conferred by the Prime Minister of India to the Bhilai Steel Plant as best integrated steel plant in India and the earnings from the fund are utilised for the
welfare of the employees in Bhilai.

29. BORROWINGS - CURRENT

Secured
Repayable on demand
From banks 2334.39 1302.09
Other loans and advances
From Banks - 250.00
Unsecured
Other loans 2950.00 600.00
Commercial paper 3961.88 7883.93
Foreign currency loans 2998.05 9777.02
12244.32 19813.04
1. Security disclosure for the outstanding short term borrowings as on 31st March, 2018:
Borrowings from banks are secured, in respect of respective facilities by way of :
(i) Hypothecation of all current assets

54
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

30: TRADE PAYABLES - CURRENT

Due to micro, small and medium enterprises (refer note 48.2) 48.22 38.12
Amount payable to related parties 9.30 11.58
Amount payable to contractors/suppliers/others 7482.98 5169.50
7540.50 5219.20

31: OTHER FINANCIAL LIABILITIES - CURRENT

Employee related dues 159.95 161.73

Interest accrued but not due on borrowings 1072.54 1076.09
Other liabilities-debtors banking arrangement 325.45 228.16
Derivative liability 65.24 603.57
Current maturities of long term debts 3271.71 2381.74
Current maturities of finance lease obligations 115.53 113.39
Unclaimed matured deposits and interest accrued thereon 1.01 1.03
Security deposits 1323.33 1230.73
Less: Investments received as security deposit - 1323.33 - 1230.73
Unpaid dividends 6.21 8.53
Payable for capital works 3701.83 2530.70
Other payables 4127.40 4429.95
14170.20 12765.62

32: OTHER LIABILITIES - CURRENT

Income received in advance from customers 1880.13 1760.93

Income received in advance - others 112.80 82.53
Deferred Income* 11.90 10.98
GST payable 2135.74 -
Other payables 3001.85 3752.82
7142.42 5607.26

*Deferred income inlcudes award conferred by the Prime Minister of India to the Bhilai Steel Plant as best integrated steel plant in India and the earnings from the fund are utilised for
the welfare of the employees in Bhilai.

33: PROVISIONS - CURRENT

Provision for gratuity 31.11 236.10

Provision for accrued leave liability 308.77 303.68
Provision for post retirement medical & settlement benefits 105.60 108.95
Provision for long term service award 2.03 3.06
Provision for pollution control 40.30 39.43
Provision for foreign exchange fluctuation - 13.02
Provision for wage revision 1216.24 1545.02
Provision for mine afforestation/ restoration etc. 319.25 341.97
Other provisions 280.88 323.54
2304.18 2914.77

34: CURRENT TAX LIABILITIES (NET)

Opening Balance 4.52 11.90

Add: Provision during the year - -
Less: Amount paid/transferred during the year 4.52 7.38
Less: Provision written back during the year - - - 4.52

- 4.52

55
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

35. REVENUE FROM OPERATIONS

Sale of products
Domestic 55971.08 47376.04
Exports 2243.70 1737.83
Export incentives 82.48 66.37
Sub Total (a) 58297.26 49180.24
Sale of Services
Service charges 23.56 31.89
Sub Total (b) 23.56 31.89
Other Operating Revenues
Social amenities-recoveries 337.76 334.01
Sale of empties etc. 80.00 70.74
Sundries 223.78 150.22
Sub Total (c) 641.54 554.97
Total ( a+b+c ) 58962.36 49767.10

36. OTHER INCOME

Interest income
Loans & advances to other companies 0.78 0.88
Customers 101.78 80.87
Employees 16.75 20.21
Bank deposits 4.84 0.10
Others 41.94 45.23
Sub Total (a) 166.09 147.29
Dividend income
Dividend from subsidiaries 6.31 4.64
Dividend from investments 69.85 87.29
(includes dividend from investments carried at fair value through OCI)
Sub Total (b) 76.16 91.93
Net gain on sale of investments Sub Total ( c ) - 0.01
Other non-operating Income
Subsidy, relief and concession 6.12 4.43
Grant-in-aid 0.54 0.10
Provisions no longer required written back 90.64 42.66
Write back of other liabilities 81.62 54.96
Liquidated damages 20.02 75.53
Foreign exchange fluctuations (net) - 76.60
Others 43.26 42.10
242.20 296.38
Less: Expenses attributable to non-operating income - -
Sub Total (d) 242.20 296.38
Total (a+b+c+d) 484.45 535.61

56
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

37 : COST OF MATERIALS CONSUMED

Iron ore 3818.79 3614.87

Coal 21445.07 16198.51
Coke 31.63 70.64
Limestone 1232.17 1107.24
Dolomite 474.80 450.33
Ferro manganese 337.61 340.96
Ferro silicon 201.73 193.63
Silico manganese 1193.85 904.24
Intermediary Products - 0.01
Zinc 176.84 122.03
Aluminium 242.58 226.91
Others 1299.85 1285.87
30454.92 24515.24
Less :Inter account adjustments 3776.11 3389.54
26678.81 21125.70

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

Opening stock
Finished goods 5822.07 5545.82
Work in progress 3984.98 4395.10
9807.05 9940.92
Less: Closing stock
Finished goods 4430.95 5822.07
Work in progress 3212.72 3984.98
7643.67 9807.05
2163.38 133.87
Less : Excise duty on accretion (-) /depletion to stock 1027.89 13.24
1135.49 120.63

39: EMPLOYEE BENEFITS EXPENSE*

Salaries & wages 6461.98 6876.89

Leave encashment 357.55 491.23
Company's contribution to provident & other funds 753.71 889.02
Travel concession 61.55 21.71
Welfare expenses 354.63 312.47
Gratuity 860.65 356.51
8850.07 8947.83
*Expenditure on employees's remuneration and benefits not included above and charged to:
Expenditure during construction 100.72 136.16
**For descriptive notes on disclosure of defined benefit obligation, refer note 50

57
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

40: FINANCE COSTS

Interest Cost
Foreign currency loans* 526.99 552.45
Non convertible bonds 915.78 794.54
Bank borrowings - working capital 42.97 63.12
Steel development fund loans 4.08 3.74
Others 1319.53 1105.51
Interest under Income Tax Act - 0.01
Other borrowing costs 13.40 8.45
2822.75 2527.82
*Including foreign exchange fluctuations gain of `120.04 crore (previous year: `188.52 crore loss)
Expenditure on Interest & Finance charges not included above and charged to Expenditure during Construction:
Foreign currency loans 94.89 108.06
Non convertible bonds 365.43 468.48
Steel development fund loans - Interest 4.09 4.43
Others 204.11 0.93
668.52 581.90

(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

41: OTHER EXPENSES

Consumption of stores & spares

Consumption 3614.23 3694.99

Less: Departmentally manufactured stores 735.15 859.64

Less: Finished products internally consumed as stores and spares 473.26 2405.82 532.15 2303.20

Repairs & maintenance

Buildings 193.77 201.73

Plant & machinery 821.56 713.83

Others 228.48 1243.81 223.64 1139.20

Handling expenses

Raw material 425.91 328.79

Scrap recovery 282.30 708.21 297.33 626.12

Remuneration to auditors

Audit fees 1.79 1.94

Tax audit fees 0.51 0.47

In other services 1.16 0.96

Out of pocket expenses 0.67 4.13 0.65 4.02

Provisions

Doubtful debts, loans and advances 85.42 74.47

Investments 13.08 0.20

Stores, spares and sundries 117.24 215.74 72.88 147.55

58
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

41: OTHER EXPENSES (CONTD.)

Power and fuel 5809.81 5233.93

Freight outward 2241.95 1161.99

Royalty and cess 1271.58 996.81

Conversion charges 306.08 454.33

Excise duty on inter-plant transfer/internal consumption 63.76 292.12

Demurrage & wharfage 38.82 53.41

Water charges & cess on water pollution 115.82 121.02

Insurance 24.87 32.47

Postage, telegram & telephone 16.76 20.42

Printing & stationery 8.22 9.80

Rates & taxes 58.30 69.64

Rent 80.52 60.72

Security expenses 512.39 490.71

Travelling expenses 157.51 156.30

Expenditure on temporary suspended mines (refer note - 49.18) 82.07 97.95

Training expenses 41.81 30.36

Expenditure on corporate social responsibility (refer note - 49.10) 25.70 29.05

Foreign exchange fluctuations (net) 3.73 -

Loss on sale/scrapping of fixed assets (net) 72.80 48.17

Cost of Audit fee and reimbursement of expenses 0.04 0.32

Write-offs - Miscellaneous 2.61 0.01

Handling expenses - finished goods 186.43 157.45

Commission to selling agents 6.53 7.34

Export sales expenses 47.01 22.97

Miscellaneous 523.41 452.83

16276.24 14220.21

41A: EXCEPTIONAL ITEMS

Voluntary retirement compensation 254.20 216.74

Write back of pension liabilities (458.16) -

Provision for illegal mining 340.72 -

Reversal of Distrct Mineral Fund (261.76) -

Reversal of wages and salary (110.82) -

Provision for surrender of coal blocks 209.39 -

(26.43) 216.74

59
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
42. FINANCIAL INSTRUMENTS
i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are categorized into three levels of a fair value hierarchy. The three levels are
defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market
data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
ii) Financial assets and liabilities measured at fair value - recurring fair value measurements (` crore)
st
As at 31 March, 2018 Level 1 Level 2 Level 3 Total
Financial assets
Financial instruments at FVTPL
Derivative financial assets 124.39 124.39
Investments at FVOCI
Equity instruments*
Quoted 15.80 15.80
Unquoted 64.69 64.69

Total financial assets 15.80 124.39 64.69 204.88

Financial liabilities
Financial instruments at FVTPL
Derivative liability 65.24 65.24

Total financial liabilities - 65.24 - 65.24

Financial assets and liabilities measured at fair value - recurring fair value measurements (` crore)
st
As at 31 March, 2017 Level 1 Level 2 Level 3 Total
Financial assets
Financial instruments at FVTPL
Derivative financial assets 227.54 227.54
Investments at FVOCI
Equity instruments*
Quoted 13.30 13.30
Unquoted 58.39 58.39

Total financial assets 13.30 227.54 58.39 299.23

Financial liabilities
Financial instruments at FVTPL
Derivative liability 603.57 603.57

Total financial liabilities - 603.57 - 603.57

iii) Financial assets and liabilities - for which fair values are disclosed (` crore)
st st
Level As at 31 March, 2018 As at 31 March, 2017

Carrying value Fair Value Carrying value Fair Value

Financial assets
Loans Level-3 514.87 544.76 514.99 523.40
Derivative financial assets Level-2 124.39 124.39 227.54 227.54
Equity instruments*
Quoted Level-1 15.80 15.80 13.30 13.30
Unquoted Level-3 64.69 64.69 58.39 58.39

Total financial assets 719.75 749.64 814.22 822.63

Financial liabilities
Borrowings Level-3 47358.17 47714.31 43280.15 43628.65
Other payables Level-3 9947.63 9988.81 9148.35 9281.67
Derivative liability Level-2 65.24 65.24 603.57 603.57

Total financial liabilities 57371.04 57768.36 53032.07 53513.89

60
Notes to the Standalone Financial Statements for the year ended 31st March, 2018

(iv) Valuation process and technique used to determine fair value

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

Particulars Unlisted equity securities

As at 31st March, 2016 58.39
Gains/losses recognised in other comprehensive income -
As at 31st March, 2017 58.39
Gains/losses recognised in other comprehensive income 6.30
As at 31st March, 2018 64.69

43. FINANCIAL RISK MANAGEMENT

i) Financial instruments by category (` crore)
st st
As at 31 March, 2018 As at 31 March, 2017
Particulars FVTPL FVOCI Amortised FVTPL FVOCI Amortised
cost cost
Financial assets
Investments
Equity instruments* 80.49 71.69
Trade receivables 3869.94 2921.69
Cash and cash equivalents 79.45 120.93
Other Bank Balances 174.61 168.16
Loans 514.87 514.99
Derivative financial assets 124.39 227.54
Other receivables 2828.99 2302.73
Total 124.39 80.49 7467.86 227.54 71.69 6028.50
Financial liabilities
Borrowings 47358.17 43280.15
Trade payable 7546.88 5226.56
Derivative Liability 65.24 603.57
Other payables 9947.63 9148.35
Total 65.24 - 64852.68 603.57 - 57655.06
* Investment in equity of joint ventures and associates have been carried at cost as per Ind AS 27 "Separate financial statements" and hence are not presented here.
ii) Risk Management
The Company is exposed to various risk in relation to financial instruments. The Company's financial asset and liabilities are by category are summarised in note 43(i). The main
types of risks are market risk, credit risk and liquidity risk. The Company’s risk management is co-ordinated at its headquarters, in close cooperation with the board of directors, and
focuses on actively securing the Company’s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are
managed to generate lasting returns. The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant
financial risks to which the Company is exposed are described below.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Comapny. The Company is exposed to this risk for various financial instruments, for example by
granting loans and receivables to customers, placing deposits, etc. The Company’s maximum exposure to credit risk is limited to the carrying amount of following types financial
assets.
-Cash and cash equivalents
-Derivative financial instruments
-Trade receivables
-Other financial assets measured at amortized cost
The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit
risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company's policy is to
deal only with creditworthy counterparties.

61
Notes to the Standalone Financial Statements for the year ended 31st March, 2018

a) Credit risk management

Cash and cash equivalent
Credit risk related to cash and cash equivalents is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the
country.
Derivative financial instruments
Credit risk related to derivative financial instruments is also managed by only entering into such arrangement with highly rated banks or financial institutions as counterparties.
The company diversifies its holdings with multiple counterparties.
Trade receivables
Credit risk related to trade receivables are mitigated by taking bank guarantees from customers where credit risk is high. The Company closely monitors the credit-worthiness
of the debtors and only sells goods to credit-worthy parties. The Company's internal systems are configured to define credit limits of customers, thereby limiting the credit risk
to pre-calculated amounts.
Other financial assets measured at amortized cost
Other financial assets measured at amortized cost includes loans and advances to employees and others. Credit risk related to these other financial assets is managed by
monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
b) Expected credit losses
Company provides expected credit losses based on the following
Trade receivables
The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach and uses historical information to arrive at loss percentage relevant
to each category of trade receivables:
(` crore)
Ageing (As at 31st March, 2018) 0-3 months 3-12 months 12-24 months 24-36 months more than Total
36 months
Gross carrying amount 2997.57 697.14 92.93 74.74 197.58 4059.96
Expected loss rate 0.03% 0.38% 2.30% 2.81% 92.26% 4.68%
Expected credit loss provision 0.84 2.66 2.14 2.10 182.28 190.02
Carrying amount of trade receivables 2996.73 694.48 90.79 72.64 15.30 3869.94
(Net of impairment)

Ageing (As at 31st March, 2017) 0-3 months 3-12 months 12-24 months 24-36 months more than Total
36 months
Gross carrying amount 2289.06 414.86 133.89 37.83 222.53 3098.17
Expected loss rate 0.03% 0.37% 1.57% 6.27% 76.33% 5.70%
Expected credit loss provision 0.59 1.54 2.10 2.37 169.86 176.48
Carrying amount of trade receivables 2288.47 413.32 131.79 35.46 52.67 2921.69
(Net of impairment)

Reconciliation of Expected credit loss provision (` crore)

Particulars Unlisted equity securities
As at 31st March, 2016 146.82
Changes in provision (29.65)
As at 31st March, 2017 176.48
Changes in provision 13.54
As at 31st March, 2018 190.02

Other financial assets measured at amortized cost

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

62
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)
st
Contractual maturities of financial liabilities as at 31 March, 2018 Less than 1-2 year 2-3 year More than Total
1 year 3 years
Non-derivatives
Borrowings* 18348.05 5719.16 4611.01 27190.55 55868.77
Trade payable 7540.49 0.64 0.85 4.89 7546.87
Other payables 10392.85 112.45 96.56 1270.94 11872.80

Total 36281.39 5832.25 4708.42 28466.38 75288.44

Derivatives
Derivative liability (Net Settled) 65.24 65.24

Total 65.24 - - - 65.24

Contractual maturities of financial liabilities as at 31st March, 2017 Less than 1-2 year 2-3 year More than Total
1 year 3 years
Non-derivatives
Borrowings* 24177.67 4569.02 4652.70 13282.34 46681.74
Trade payable 5226.62 1.29 5.64 0.43 5233.98
Other payables 10428.43 125.11 105.03 1445.94 12104.51

Total 39832.72 4695.42 4763.37 14728.71 64020.22

Derivatives
Derivative liability 603.57 603.57

Total 603.57 - - - 603.57

* borrowings excludes finance lease obligations, refer note 49.11(b) for disclosure of maturity profile of finance lease obligations.

C) Market Risk
a) Foreign currency risk
Most of the Company’s transactions are carried out in INR. Exposures to currency exchange rates arise from the Company’s overseas borrowing arrangements, which are primarily
denominated in US dollars (USD).
To mitigate the Company’s exposure to foreign currency risk, non-INR cash flows are monitored and forward exchange contracts are entered into in accordance with the Company’s
risk management policies. Generally, the Company’s risk management procedures distinguish short-term foreign currency cash flows (due within 6 months) from longer-term cash
flows (due after 6 months). Where the amounts to be paid and received in a specific currency are expected to largely offset one another, no further hedging activity is undertaken.
Forward exchange contracts are mainly entered into for significant long-term foreign currency exposures that are not expected to be offset by other same-currency transactions.
Foreign currency risk exposure:
The Company's significant exposures to foreign currency risk at the end of the reporting period expressed in ` crore are as follows:
Particulars As at 31st March, 2018 As at 31st March, 2017
USD Euro USD Euro
Financial assets
Trade receivables 1.89 38.25
Cash and cash equivalents
Other Bank Balances
Loans
Derivative financial assets (Gross amounts, to hedge borrowings) 3343.41 10099.90
Other receivables

Net exposure to foreign currency risk (assets) 3345.30 - 10138.15 -

Financial liabilities
Borrowings 3619.36 327.06 13039.83 327.06
Trade payable 90.63 330.72 57.25 307.02
Derivative Liability 29.35
Other payables 68.30 137.27

Net exposure to foreign currency risk (liabilities) 3807.64 795.05 13097.08 634.08

Sensitivity
The following table illustrates the sensitivity of profit and equity in regards to the Company’s financial assets and financial liabilities and the USD/INR exchange rate and EUR/INR
exchange rate ‘all other things being equal’. It assumes a +/- 4.24% change of the INR/USD exchange rate for the year ended at 31 March, 2018 (2017:4.09%). A +/- 6.90%
change is considered for the INR/EUR exchange rate (2017: 7.86%). Both of these percentages have been determined based on the average market volatility in exchange rates in the
previous 12 months. The sensitivity analysis is based on the Company’s foreign currency financial instruments held at each reporting date and also takes into account forward
exchange contracts that offset effects from changes in currency exchange rates.

63
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
(` crore)
st st
Particulars As at 31 March, 2018 As at 31 March, 2017
USD sensitivity
INR/USD- increase by 4.24% (31st March 2018) (19.60)
INR/USD- decrease by 4.24% (31st March 2018) 19.60
INR/USD- increase by 4.09% (31st March 2017) (121.02)
INR/USD- decrease by 4.09% (31st March 2017) 121.02
Euro sensitivity
INR/EUR- increase by 6.90% (31st March 2018) (54.86)
INR/EUR- decrease by 6.90% (31st March 2018) 54.86
INR/EUR- increase by 7.86% (31st March 2017) (49.84)
INR/EUR- decrease by 7.86% (31st March 2017) 49.84

b) Interest rate risk

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term borrowings are therefore usually at fixed rates. At 31 March, 2018,
the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates. Other borrowings are at fixed interest rates. The Company’s
investments in bonds all pay fixed interest rates. The exposure to interest rates for the Company’s money market funds is considered immaterial. The following table illustrates the
sensitivity of profit and equity to a reasonably possible change in interest rates of +/- 1% (2017: +/- 1%). These changes are considered to be reasonably possible based on
observation of current market conditions. The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each
reporting date that are sensitive to changes in interest rates. All other variables are held constant.
i) Liabilities
The company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31st March, 2018, the company is exposed to changes in market interest
rates through bank borrowings at variable interest rates.
Interest rate risk exposure
Below is the overall exposure of the company to interest rate risk: (` crore)
st st
Particulars As at 31 March, 2018 As at 31 March, 2017
Variable rate borrowing (excluding exposures offset by derivatives) 2998.05 9777.02
Fixed rate borrowing 44360.12 33503.13

Total borrowings 47358.17 43280.15

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

Particulars As at 31st March, 2018 As at 31st March, 2017

Interest sensitivity
Interest rates-increase by 100 basis points 473.58 432.80
Interest rates-decrease by 100 basis points (473.58) (432.80)

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

Particulars As at 31st March, 2018 As at 31st March, 2017

Variable rate deposits/ loans - -
Fixed rate deposits/ loans 689.48 683.15

Total deposits 689.48 683.15

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

64
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
44. CAPITAL MANAGEMENT
The Company’ s capital management objectives are
- to ensure the Company’s ability to continue as a going concern
- to provide an adequate return to shareholders
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
Management assesses the company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account
the subordination levels of the company’s various classes of debt. The company manages the capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
(` crore)

Particulars As at 31st March, 2018 As at 31st March, 2017

Net debts 47104.11 42991.06
Total equity 35713.67 36009.06

Net debt to equity ratio 1.32 1.19

Dividends
(i) Equity shares
Final dividend for the year ended 31st March, 2018 of @nil Nil Nil
(ii) Dividends not recognised at the end of the reporting period Nil Nil

45. DETAILS OF ASSETS PLEDGED

(` crore)

Particulars As at 31st March, 2018 As at 31st March, 2017

Current
Inventories and trade receivables (to the extent pledged) 2334.39 1552.09
Non Current
Plant & Machinery (movable assets) - Durgapur steel plant (to the extent pledged) 1148.00 1162.00
Plant & Machinery (movable assets)-Bokaro & Bhilai Steel Plant (to the extent pledged) 16403.26 2500.00
Land and Plant & Machinery (at Mouje-Wadej of city taluka, District Ahemadabad, Gujarat) - ISP 10295.00 13202.00

46. EFFECTIVE TAX RECONCILIATION

(` crore)

st
Particulars As at 31 As at 31st
March, 2018 March, 2017

Profit/(loss) before tax (758.94) (4,850.86)

Domestic tax rate for PFS 34.94% 34.61%
Expected tax expense [A] (265.20) (1,678.79)
Adjustment for tax-exempt income/ non-deductible expenses (12.59) (9.51)
Adjustment for difference tax rate items (1.48) 0.47
Tax incentive on specific expenditure (16.09) (353.00)
Tax related to earlier years 35.73 43.64
Increase in Corporate tax rate (28.39) -
Others 10.79 (20.44)
Total adjustments [B] (12.03) (338.84)
Actual tax expense [C=A+B] (277.23) (2,017.62)
Tax expense comprises:
Current tax expense - -
Deferred tax credit (277.23) (2,017.62)
Tax expense recognized in Statement of profit and loss [D] (277.23) (2,017.62)

65
47.1 CONTINGENT LIABILITIES
(` crore)

As at As at
31st March, 2018 31st March, 2017

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

a) Excise Duty 4527.42 3751.71

b) Sales Tax on inter-state stock transfers from plants to stockyards*. 739.90 740.99

c) Other sales tax matters 629.13 628.34

d) Income Tax 1416.94 1288.55

e) Other duties, cess and levies 6794.71 6311.57

f) Civil matters ** 3495.56 3178.30

g) Entry Tax 2125.99 2173.75

h) Miscellaneous ** 2942.42 15109.38

* No liability is expected to arise, as sales tax has been paid on eventual sales.
** includes claims of `60.97crore (as at 31st March, 2017 `47.44crore), against which there are
counter-claims of `35.37crore (as at 31st March, 2017 `26.30crore).

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

a) Sales Tax 64.29 43.16

b) Duties, cess and levies 629.27 616.51

c) Civil Matters 98.99 89.94

d) Miscellaneous * 2757.72 2494.37

* includes claims of `100.94crore (as at 31st March, 2017 `100.94 crore, against which there are
counter-claims of `103.95 crore (as at 31st March, 2017 `103.95 crore).

(iii) Disputed income tax/service tax/other demand on joint venture company for which company may be 34.76 32.89
contingently liable under the joint venture agreement

(iv) Bills drawn on customers and discounted with banks. 68.83 37.38

(v) Price escalation claims by contractors/suppliers and claims by employees. 441.70 408.62

47.2 a) (i) The Nine Judges Constitutional Bench of Hon'ble Supreme Court, vide its judgment dated 11.11.2016, has upheld the constitutional validity of levy of Entry Tax Acts
enacted by the States and has laid down principles/tests for consideration. The respective regular Benches of the Apex Court would hear the matters as per laid down
principles. Pending decisions by the regular Benches of the Apex Court on levy of Entry Tax in the States of Chhattisgarh, Odisha, Uttar Pradesh, and Jharkhand, the Entry
Tax demands, under dispute, of `1092.28 crore, `241.00 crore, `92.23 crore and `5.15 crore respectively upto 31st March, 2018 aggregating to `1430.66crore (including
a sum of `1092.28 crore, `352.16 crore, `92.23 crore and `5.15 aggregating to `1541.82 croreupto 31st March, 2017) have been treated as contingent liabilities.
(ii) Pending final decision by the Hon'ble Calcutta High Court, in the case of levy of Entry Tax in West Bengal, the disputed Entry Tax demands of `295.50croreupto
31st March, 2018 (upto 31st March, 2017 `254.21crore) have been treated as contingent liabilities.
b) Hon'ble Supreme Court dismissed the SLP by the Company in respect of dispute with Damodar Valley Corporation(DVC) related to provisional tariff petition of electricity
charges for 2009-14 vide order dated 18th January, 2017, keeping the question of law open. The Order of Central Electricity Regulatory Commission (CERC) dt.7/8/2013
related to Tariff of 2009-14 against Petition No.275/GT/2012 has been challenged before Appellate Tribunal for Electricity (APTEL) (Appeal No.18 of 2014) in which the
Company has also intervened and the order of APTEL is pending. The appeal filed by DVC pertaining to tariff of 2004-09 is yet to be decided by the Hon'ble Supreme Court
of India. As per legal opinion received by the Company, the decision of Hon'ble Supreme Court of India on determination of the tariff of 2004-09 may have an effect on the
subsequent periods. Pending final decision in this regard, the claimof DVC of `587.72 crore upto 31st March, 2018 (upto 31.03.2017, `587.72) has been considered as
Contingent Liability and included in Note No. 47.1(i)(f) above. Against the said claims, the entire amount has been paid to DVC and disclosed under Other Current Assets.
Further from 1st April, 2017 onwards full invoice value has been considered in the sStatement of Profit & Loss.
47.3 Under the Jharkhand Mineral Area Development Authority (Amendment) Act, 2015 the State Government of Jharkhand has made a demand of `3374.46 crore upto
31st March, 2018 (upto 31st March, 2017 `3045.41 crore) towards "Market Fee" on transaction value of coal, iron and steel items. As the matter is sub-judice, the amount
has been disclosed as a Contingent Liability in Note No. 47.1(i)(e) above.
47.4 The Company pays royalty on iron ore on the basis of quantity removed from the leased area at the rates based on notification by the Ministry of Mines, Government of India
and the price published by India Bureau of Mines on a monthly basis for both iron ore lumps and fines separately. A circular was issued by the State Government of Odisha
regarding payment of royalty on fines at the rate of lumps on 07.09.2010 retrospectively effective from August 2009. The Government of India, vide circular dated
23.07.2012, directed the State Government of Odisha to withdraw the circular dated 07.09.2010. Accordingly, excess royalty for fines at the rate applicable for lumps, paid
in two Iron Ore Mines of the Companyamounting to `143.54crore, has been shown as Claims Recoverable. As the Company has disputed the matter with the Appropriate
Authorities, pending withdrawal of the circular of the State Government of Odisha, the amount of `143.54crore ( As on 31st March, 2017`144.34 crore) has been included
in the Contingent Liability, in Note No. 47.1(ii)(b) above.
47.5 In its judgement, the Central Administrative Tribunal (CAT), Kolkata has directed that Ministry of Steel shall consider the aspect of payment of arrears of revised perks and
allowances and take appropriate decision of payment of revised perks and allowances amounting to `325.13 crore to the executives for the period 26.11.2008 to
4.10.2009. Ministry of Steel intimated the matter to the Company on 7.12.2016. A stay petition in the matter has been filed on 22.12.2016 and is pending before the Hon'ble
Calcutta High Court. As the matter is sub-judice, the amount has been disclosed as a Contingent Liability in Note No. 47.1(v) above.

66
47.6 Indigenous washed coking coal supplies have been claimed by Bharat Coaking Coal Limited (BCCL) and Central Coalfields Limited (CCL) at unilaterally notified price w.e.f.
13th January, 2017 and 14th January, 2017 respectively, which is in deviation from the mutually agreed price with the Company for the year 2016-17. The Company has
accounted for the supplies based on agreed prices as per jointly signed Memorandum of Understanding, valid for supplies w.e.f. 1st April, 2016 to 31st March, 2017, between
SAIL and BCCL & CCL. The differential claims of BCCL & CCL, amounting to `334.45 croreat unilaterally notified higher rates over and above MOU rates, have been
disclosed as contingent liability in the Note No. 47.1(ii)(d) above.
47.7 The Ministry of Environment & Forest and Climate Change (MoEF& CC) vide their letter No.- 11-599/ 2014-FC dated 1st April 2015 issued revised Guidelines for diversion
of Forest Land for non-forest purpose under the Forest (Conservation) Act, 1980 (FC Act). These revised Guidelines stipulated that in case of existing mining leases having
Forest Land (partially or fully), where approval for only a part of forest land has been obtained under the FC Act, the Central Government accorded general approval under
Section-2(iii) of the FC Act for the remaining area also to be Forest Land, subject to certain conditions, which includes realising Net Present Value (NPV) for the entire forest
land falling in the mining lease, in case NPV of such forest land has not already been realised.
In this matter, as per legal opinion obtained by the Company, Section 2 (iii) of FC Act, 1980 will not apply to Government Corporation and NPV is required to be paid only for
that limited area, which has been approved by MoEF& CC and in which mining activities are proposed to be done and not for the entire forest area. The matter of applicability
of NPV for total forest land has been challenged by the Company in Hon'ble High Court of Jharkhand. The Hon'ble Court, in its order, has directed to place the matter before
Division Bench of this Court.
During the year, the Company has received a demand of ` 96.28 crore from Office of the Principal Chief Conservator of Forest, Chhattisgarh against which writ petition has
been filed in Hon'ble high Court of Chhattisgarh.
47.8 Pursuant to the Hon'ble Supreme Court Judgment dated 2nd August, 2017 in the Common Cause matter regarding illegal mining, demand/Show cause notices have been
issued for recovery of the price of minerals produced without and beyond the environmental clearances under Section 21(5) of Mines and Mineral Development Regulation
Act, 1957, forest clearance under the Forest Conservation Act 1980, and towards excess production beyond consent to operate. The Company has challenged the
purported demand before the High Court of Jharkhand and Odisha and obtained stay on demand. As the matter is pending for final determination and considering the
implication of existing litigation, the Company has provided as detailed below:
(a) In respect of Iron Ore, by the Government of Odisha and Government of Jharkhand amounting to `212.85crore and `1478.86 respectively (including interest). Based on
internal judgment, the Company has provided an amount of `333.45crore during the year on estimated basis under exceptional item. Balance amount of `1358.26crore(including
interest) has been treated as contingent liability in Note No. 47.1(i)(h) above.
(b) In respect of Limestone, by the Government of Jharkhand amounting to `20.28crore (including interest). Based on internal judgment, the Company has provided an amount
of `7.27crore during the year on estimated basis under exceptional item. Balance amount of `13.01crore (including interest) has been treated as contingent liability in Note
No. 47.1(i)(h).
47.9 In respect of Coal, by the Government of Jharkhand amounting to `354.54crore (including interest) during the year. Revision Application has been filed under Rule 55 (5)
of Mineral Concessions Rule, 1960 read with Section 30 of Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). The Revisional Authority, Ministry of
Coal, has granted Stay to the Company. Accordingly pending disposal the amount of `354.54 crore (including interest) has been treated as Contingent Liability in Note No.
47.1(i)(h).
48.1 Estimated amount of contracts remaining to be executed and not provided for (net of advances) are:
(` crore)
Particulars As at 31st As at 31st
March, 2018 March, 2017

Capital commitments 10747.11 13580.65

Other commitments 1824.86 1532.38
48.2 The amount due to Micro and Small Enterprises as defined in the The Micro, Small and Medium Enterprises Development Act, 2006 (as disclosed in Note No. 30 Trade
Payables) has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and
Small Enterprises as at 31st March, 2018 are as under:
(` crore)
No. Description As at 31st As at 31st
March, 2018 March, 2017

i. The principal amount remaining unpaid to suppliers as at the end of the Year. 48.22 38.12
ii. The amount of interest accrued during the year and remaining unpaid at the end of the Year. - -
iii. The amount of further interest remaining due and payable even in the succeeding years, until such date when the - -
interest dues as above are actually paid to the small enterprises, for the purpose of disallowance as a deductible
expenditure under section 23.
iv. The interest due thereon remaining unpaid to supplier as at the end of the Year. - -

For the Year ended

st
31 March, 2018 31st March, 2017

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

48.3 Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmations/reconciliations and consequential adjustment, if any.
Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made. However, Management does not expect to have any
material financial impact of such pending confirmations/reconciliations.
48.4 The Block Land and Land Reforms Office, (Faridpur-Durgapur) and Andal, District: Paschim Bardhaman, Govt. Of West Bengal has raised demand of arrears of land revenue,
cess and interest for part of land of Durgapur Steel Plant henceforth referred to as 'Company' and its Township covering a period of past 40 years aggregating to `494.51
crore (previous year `nil crore) vide two demand notices dated 21.02.2018 and 08.03.2018 respectively.
The Company has contested the demands. Part of the land against which demand has been raised was acquired on behalf of the Central Government under Land Acquisition
Act and such acquisition vested in Union of India, while certain other parts of its lands were transferred by State Government to the Central Government and the Company

67
 holds such lands on behalf of President of India. As per Article 285 of the Constitution of India no land revenue is payable on such lands. Moreover, Company had also paid
capitalised value of land revenue and as per judicial pronouncement, no land revenue is payable for lands for which capitalised value is paid. As such Company is of the
opinion that the demand raised against the Company is not tenable at all. Representation on that effect has already been made on 26th April, 2018 and 28th April, 2018.
49.1 Revenue from operations for the period up to 30th June, 2017 includes excise duty of `1403.90 crore , which is discontinued effective 1st July, 2017 upon implementation
of Goods and Services Tax (GST). In accordance with 'Ind AS 18- Revenue', GST amount of `7864.70 crore is not included in Revenue from Operations. In view of the
aforesaid change, Revenue from operation for the year ended on 31st March, 2018 is not comparable with the previous year.
49.2 Sales include sale to Government Agencies recognized on provisional contract prices during the yearended 31st March, 2018: `4802.50crore (Previous Year : `3807.78
crore) and cumulatively up to 31st March, 2018 : `12271.05 crore (upto Previous Year : `18342.41 crore).
49.3 Keeping in view the affordability and financial sustainability clause in Office Memorandum dated 3rd August, 2017 and 24th November, 2017 issued by the Government of
India, Ministry of Heavy Industries & Public Enterprises, Department of Public Enterprises in respect of Pay Revision of employees:
(a) an all-inclusive provision towards salary revision of Board and below Board level executives, charged to 'Employee Benefit Expenses' and Expenditure During Construction
in earlier quarters amounting to `95.71 crore and `3.24 crore respectively has been written back during current quarter and `33.35 crore for the period from 1.1.2017 to
31.3.2017 has been written back during the current quarter and shown as 'Exceptional Item'.
(b) an all-inclusive provision towards salary and wage revision of Non-executive Employees charged to 'Employee Benefit Expenses' in earlier quarters amounting to `230.77
crore has been written back and `77.47 crore for the period from 1.1.2017 to 31.3.2017 has been written back during the current quarter and shown as 'Exceptional item'.
49.4 As per the Department of Public Enterprises (DPE) guideline, the Company is required to contribute up to 30% of Salary (Basic Pay + Dearness Allowance) in respect of
executive employees as superannuation benefits, which may include Contributory Provident Fund, Gratuity, Pension and Post-Superannuation Benefits. Accordingly the
Company has made provision for pension benefit for executive employees @ 9% of Salary w.e.f. 1st January, 2007 and 3% of Salary w.e.f. 1st January, 2017. Further,
pension benefit for non-executive employees has been provided @ 6% of Salary w.e.f. 1st January, 2012 and 2% of Salary w.e.f. 1st January, 2017.
The cumulative provision/liability towards pension benefit for executive & non-executive employees, amounting to `2494.52 crore (`126.59 crore during the year) and
`47.81 crore (`1.76 crore during the year) has been charged to 'Employee Benefits Expense' and `Expenditure during Construction' respectively.
Based on DPE Guidelines on superannuation benefits which may include pension benefits to employees, Board of Directors of the Company keeping in view affordability and
financial sustainability to pay by the Company, revised pension benefit to 3% of Basic+ DA (as against 9% earlier decided) for Executives and 2% of Basic+ DA (as against
6% earlier decided) for Nonexecutives and accordingly:
(a) an amount of `170.02 crore provided from 1st April, 2015 to 31st December, 2016 in earlier years in respect of pension for Executives has been written back and credited
to 'Exceptional Item' during the current year.
(b) an amount of `288.14 crore provided from 1st April, 2015 to 31st December, 2016 in earlier years in respect of pension for Non-executives has been written back and
credited to 'Exceptional Items' during the current year.
49.5 Pursuant to Notification dated 29th March, 2018 issued by the Ministry of Labour and Employment,the Central Government has enhanced the ceiling of gratuity limit from
`0.10 crore to `0.20 crore w.e.f. 29.03.2018. Accordingly, the provision for gratuity as at 31st March 2018 has been made for `582.04 crore under Employee benefit
expenses, considering the enhanced ceiling based on the actuarial report.
49.6 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 `261.76 crore has been written back under exceptional item during the year for which such levy was held not applicable.
49.7 The research and development expenditure charged to Statement of Profit & Loss and allocated to Fixed Assets/Capital work-in-progress (Net), during the year, amount to
`314.71 crore (`261.60 crore) and `20.79crore (`77.83 crore) respectively. The aggregate amount of revenue expenditure incurred on research anddevelopment is shown
in the respective head of accounts. The break-up of the amount is as under:
(` crore)
Head of Account For the year ended
31st March 31st March
2018 2017
Raw Materials 115.05 26.93
Employees Benefits Expense 97.95 88.87
Stores & Spares Consumed 11.40 9.44
Power & Fuel 21.61 4.80
Repairs & Maintenance 6.53 4.13
Depreciation and Amortisation Expense 8.54 6.42
Other Expenses 49.53 119.01
Finance Cost 4.10 2.00
Total 314.71 261.60

49.8 The Company reviews the carrying amount of its fixed assets on each balance sheet date for the purpose of ascertaining impairment, if any, by considering assets of entire
one plant as Cash Generating Unit (CGU). If any such indication exists, the assets recoverable amount is estimated, as higher of the net selling price and the value in use.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The net selling price of the CGU is determined once in every
three years.
On such review as on 31st March, 2018, no provision is required to be made during the year, as the value in use of assets of BhilaiSteel Plant, Durgapur Steel Plant, Rourkela
Steel Plant, BokaroSteel Plant and IISCO Steel Plant, based on the present value of estimated future cash-flows expected to arise from the continuing use of an asset and
from its disposal at the end its useful life, is more than the carrying amount of the respective CGU.
No provision is required to be made during the year for Alloy SteelsPlant, Salem Steel Plant and VisvesvarayaIron and Steel Plant, as the net realisable value thereof,
assessed by an independent agency, as on 31st March, 2018 for Salem Steel Plant and as on 31st March, 2017 for Alloy Steels Plant andVisvesvaraya Iron & Steel Plant,
is more than the carrying amount of respective CGU.
49.9 (a) On the basis of Board of Directors of the Company approval dated 30th May 2017 for surrendering of three limestone mining leases under Bhawanathpur viz. Saraiya, Ghagra
& Goregaon, the intangible assets of `37.47 crore towards NPV as Mining Right have been written off along-with the corresponding provisions.

68
 (b) The Board of Directors of the Company Board approved on 1st March 2018 for return of two Coal Blocks , Parbatpur and Sitanala, to Ministry of Coal. The Company has
taken provision of `18.59 crore for Sitanala and `113.05 crore for Parbatpur as exceptional expenses which appeared in CWIP.
(c) The Unit has given Bank Guarantee to Ministry of Coal as per the allotment agreement for two Coal Blocks of Parbatpur and Sitanala. After the approved on 1st March 2018
to return these two Coal Blocks to Ministry of Coal, the Company has provided Liability of `15.18Crore for Sitanala and `62.57 crore for Parbatpur Coal Block and shown
as exceptional expenses.
49.10 As per Section 135 of the Companies Act, 2013, the Company is required to spend, in every financial year, at least 2% of the average net profits of the Company made during
the three immediately preceding financial years in accordance with its Corporate Social Responsibility (CSR) Policy. Since, the Company reported average net loss during
the three immediately preceding financial years; no amount is required to be spent for the Financial Year 2017-18.
However, against the budgeted amount of `26.00 crore (previous year `29.05crore), the Company has spent an amount of `25.70 crore (previous year `29.05 crore) on
CSR activities during the Financial Year 2017-18 under the following heads:
(` crore)
Particulars 2017-18 2016-17

Education 7.65 8.74

Healthcare 5.11 3.34
Livelihood Generation 3.54 2.86
Women Empowerment 0.75 0.90
Drinking Water 1.44 0.95
Sanitation 0.47 1.50
Sports 0.79 0.91
Art & Culture 1.13 2.02
Rural Development 2.07 2.68
Social Security 0.33 0.26
Environment Sustainability 2.20 3.68
Project Identification and Monitoring 0.00 0.38
Capacity Building of Personnel 0.23 0.83
Total 25.70 29.05
Further, no expenditure has been made involving the related parties.
49.11 In compliance to General Financial Rule 238(5) & (6), the details of Grants received from Ministry of Steel and it's utilization for Research and Development Projects during
last three years are as under :
(` crore)
Year Grant Received from Central Grant Utilised (from Opening
Government Balance and Current Year)

2017-18 1.33 2.61

2016-17 2.32 2.15

2015-16 2.18 0.77

49.12 Salem Steel Plant (SSP) had obtained 12 Export Promotion Capital Goods (EPCG)authorization between 12th November 2008 to 30th November 2009 for import of capital
goods at concessional rate of customs duty under EPCG Scheme and completed the export obligation vide letter dated 13th February, 2018 received from the Office of Joint
Director General of Foreign Trade, Coimbatore.
49.13 Information on leases as per Indian Accounting Standards (Ind AS) 17 on `Leases':
(a) The Company has granted lease of properties to the employees and third parties for varying periods. The lease premium received up-front, after adjusting against book
value, is booked to other revenues in the year of lease. Renewal premium, ground rent and service charges of properties, pending for renewal, given on lease are treated as
income in the year of receipt.
(b) Finance lease liabilities (refer note 24 and 31) are secured by the related assets held under finance lease. Future minimum finance lease payments and present value of
minimum lease payments of the respective years are as follows:
(` crore)
Minimum Lease Payment Due
Within 1 year 1-5 years After 5 years Total

31st March, 2018

Lease payment 261.85 915.89 2068.04 3245.78
Finance charge (156.70) (527.49) (1092.81) (1777.00)
Net present value 105.15 388.40 975.23 1468.78
st
31 March, 2017
Lease payment 251.21 913.69 2255.38 3420.28
Finance charge (158.59) (556.78) (1233.81) (1949.18)
Net present value 92.62 356.91 1021.58 1471.11

69
 c) Description of major leasing arrangements
Power plant
The Company has accounted for certain power plants as finance lease under Appendix C of Ind AS 17 by virtue of the power purchase agreement with the supplier. Under
the terms of the power purchase agreement, the Company shall continue to purchase power until the parties decide to terminate the agreement, which has been determined
to be an un-economic proposition considering the specialised nature and location of the asset.
Oxygen Plant
The Company has accounted for certain oxygen plants as finance lease (or operating lease) under Appendix C of Ind AS 17 by virtue of the oxygen purchase agreement with
the supplier. The agreement to purchase oxygen is a 15 year fixed term agreement.
Mining land
The Company has accounted for leasehold lands for mining as finance leases by virtue of its rights under the lease agreement after considering the right/ economic
compulsion for renewal.
d) In respect of assets taken on lease/rent:
(i) The Company has various operating leases for, office facilities, guest houses and residential premises for employees that are renewable on a periodic basis. Rental
expenses for these leases recognised in the Statement of Profit and Loss during the year is `18.87crore (`14.16crore).
(ii) As at the Balance Sheet date, the future minimum lease payments under non-cancellable operating leases are:
(` crore)
As at 31st As at 31st
March, 2018 March, 2017

Not later than one year 43.23 43.06

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

Later than 5 years 258.35 301.41

49.14 As per Government of India guidelines on payment of dividends, the Company is required to pay a minimum annual dividend of 30% of Profit After Tax or 5% of the Net-
worth, whichever is higher, subject to the maximum dividend permitted under the Companies Act, 2013 and other rules, unless lower dividend proposed to be paid is
justified after analysis of the various financial parameters of the Company. In case, the Company is not able to comply with the guidelines, specific exemption has to be
obtained from Department of Investment & Public Asset Management (DIPAM), Government of India. Keeping in view the adverse financial position of the Company due to
losses, the Company has been exempted from payment of dividend for the Financial Years 2015-16 and 2016-17. For the Financial year 2017-18, the Company has again
taken up with DIPAM for exemption from payment of dividend.
49.15 Contributions in cash and kind made for the period from the Financial Year 2006-07 to 2017-18 to Railway authorities for laying out railway line from Rajhara to Rowghat
would be recovered in cash at the rate of 7% per annum for 37 years on total contribution towards redemption of SAIL's contribution after commencement and fulfilment of
assured traffic from Rowghat mines. Management is of view that the criteria laid out in Memorandum of Understanding will be met and interest accrues from the date of
investment. The refund amount comprises principal and interest elements. Accordingly, the interest element has been computed and recognized as income during the year,
amounting to `15.12crore (till date `34.24crore). As per the opinion of Expert Advisory Committee of The Institute of Chartered Accountants of India received during the
year such treatment of recognition on time proportion basis is in order as in view of Management, no significant uncertainty exists regarding collectability and measurability
of revenue.
49.16 The Cabinet Committee on Economic Affairs ( CCEA) in its meeting held on 27-10-2016 has "in-principle" decided for Strategic Disinvestment of Alloy Steels Plant (ASP),
Durgapur; Visvesvaraya Iron and Steel Plant (VISP), Bhadrawati and Salem Steel Plant (SSP), Salem. Further, in line with "in-principle" approval of Government of India, SAIL
Board in its meeting held on 9th February, 2017, approved the Strategic Disinvestment of ASP, VISP and SSP. The Company appointed various Advisors to carry out the
process. Preliminary Information Memorandum (PIM) /Expression of Interest (EoI) for ASP has been published in News papers on 14th February, 2018. PIMs/EoI of SSP
and VISP have been submitted to MoS (Ministry of Steel) for obtaining the clearance of Govt of India.
49.17 Recent Accounting Pronouncements Standards issued but not yet effective:
In March, 2018, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115, 'Revenue
from Contracts with Customers', Appendix B to Ind AS 21, 'Foreign Currency Transaction and advance consideration and amendment to certain other standards. These
amendments are in line with recent amendments made by International Accounting Standards Board (IASB). These amendments are applicable to the Company from
1st April, 2018. The Company will be adopting the amendments from their effective date.
(a) Ind AS 115, Revenue from contracts with Customers.
Ind AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. IndAS 115 requires an entity to report information regarding nature, amount, timing and
uncertainty of revenue and cash flow arising from a contract with customers. The principle of Ind AS 115 is that an entity should recoginse revenue that demonstrate the
transfer of promised goods and services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or
services. The standard can be applied either retrospectively to each prior reporting period presented or can be applied retrospectively with recognition of cumulative effect
of contracts that are not completed contracts at the date of initial application of the Standard.
Based on the preliminary assessment performed by the Company, the impact of application of the Standard is not expected to be material.
(b) Appendix B to Ind AS 21, 'Foreign currency transaction and advance consideration':
The Appendix clarifies that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the asset, expense or income (or part
of it) is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration
towards such asset, expense or income. If there are multiple payments or receipts in advance, that an entity must determine transaction date for each payment or receipts
of advance consideration.
The impact of the Appendix on the financial statements, as assessed by the Company is expected to be not material.
49.18 Based on materiality and comparability, in respect of temporarily discontinuation of operation of mines namely Barsua (w.e.f 17.05.2014), Bhawnathpur (w.e.f 29.04.2013)
and Punapani (w.e.f 01.03.2004.) due to environmental/forestry clearance issues, net expenditure during the year 2017-18, excluding depreciation, of `82.07crore
(Previous Year ` 97.95 crore) has been included under Note No.41 'Other Expenses' in Statement of Profit and Loss (refer Note No 41). Head wise bifurcation is as under:

70
 (` crore)
Account Head For the year ended For the year ended
31st March, 2018 31st March, 2017

Salary and Wages 41.05 53.41

Stores and Spares 3.80 7.77

Power purchased 10.70 11.44

Repairs and Maintenance 8.36 6.84

Miscellaneous Expenses and Provisions 21.21 22.02

Total Expenditure 85.12 101.48

Less: Income 3.05 3.53

Net Expenditure 82.07 97.95

50.1 DEFINED BENEFIT SCHEMES

50.1.1 General Description of Defined Benefit Schemes:
Gratuity: Payable on separation @15 days pay for each completed year of service to eligible employees who render continuous service of 5 years or more(for service
beyond 30 years, one month's salary for every completed year of service beyond 30 years. Maximum amount of `20 lakhs for executives& non-executives joined on or after
1st July, 2014 and without any monetary limit for other non-executives, has been considered for actuarial valuation.
Leave Encashment: Payable on superannuation to eligible employees who have accumulated earned and half pay leave, subject to maximum limit of 300 days combined
for earned leave and half pay leave. Encashment of accumulated earned leave is also allowed up to 30 days once in a financial year up to 18th November, 2015 and stopped
thereafter.
Provident Fund: 12% of Basic Pay Plus Dearness Allowance, contributed to the Provident Fund Trusts by the Company.
Post Retirement Medical Benefits: Available to retired employees at company's hospitals and/or under the health insurance policy.
Post Retirement Settlement Benefits: Payable to retiring employees for settlement at their home town.
Long term service Award: Payable in kind on rendering minimum 25 years of service and also on superannuation.
50.1.2 Other disclosures, as required under Ind AS 19 on 'Employee Benefits', in respect of defined benefit obligations are :

(a) Reconciliation of Present Value of Defined Benefit Obligations*:

(` crore)
Sl. Particulars Gratuity Leave Post Post Long Term
No. Encashment Retirement Retirement Service
Medical Settlement Award
Benefits Benefit

i) Present Value of projected benefit obligations, 6153.06 2740.01 936.21 103.73 23.14
as at the beginning of the year. (5692.84) (2535.85) (872.63) (94.95) (21.02)

ii) Service Cost 288.50 124.27 - - 1.52

(375.36) (303.44) (-) (-) (1.60)

iii) Interest Cost 443.02 198.91 67.61 7.65 1.70

(381.98) (173.00) (60.24) (6.52) (1.43)

iv) Actuarial Gains(-) / Losses(+) -328.47 35.10 76.25 14.01 -1.03

(550.79) (28.06) (86.89) (11.68) (1.82)

v) Past Service Cost 582.04 - - - -

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

vi) Benefits Paid 798.19 312.56 116.44 8.73 2.40

(847.91) (300.34) (83.55) (8.92) (2.73)

vii) Present Value of projected benefit obligations as 6339.96 2785.73 963.63 116.66 22.93
at the end of the year. (i+ii+iii+iv+v-vi) (6153.06) (2740.01) (936.21) (103.73) (23.14)

71
(b) Reconciliation of Fair Value of Assets and Obligations

The Company has funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets is mainly based on the information given by the insurance
companies through whom the investments have been made by the Fund. The reconciliation of fair value of assets of the Gratuity Fund and defined benefit gratuity obligations is
as under:
(` crore)
Sl. No. Particulars 2017-18 2016-17

i) Fair Value of plan assets as at the beginning of the year 5836.33 5494.74

ii) Expected return on plan assets 23.11 94.53

iii) Actual Company's contribution 798.07 696.50

iv) Interest Income/Actuarial Gain/Loss 449.45 398.35

v) Benefits payments 798.19 847.91

vi) Fair value of plan assets as at the end of the year 6308.85 5836.33

vii) Present value of defined benefit obligation [50.1.2)(a)(vii)] 6339.96 6153.06

viii) Net liability recognised in the Balance sheet (vii)-(vi) * 31.11 316.85

*The Company does not expect to contribute any amount towards the expenses of Gratuity Fund during the year 2018-19, after considering the return on the investments.

The defined benefit obligations, other than gratuity, are unfunded.

(c) Expenses recognised in the Statement of Profit & Loss for the Year:
(` crore)
Sl. Particulars Gratuity Leave Post Post Long Term
No. Encashment Retirement Retirement Service
Medical Settlement Award
Benefits Benefit

i) Service Cost 288.50 124.27 - - 1.52

(375.36) (303.44) (-) (-) (1.60)

ii) Interest Cost -6.34 198.91 67.61 7.65 1.70

(-16.37) (173.00) (60.24) (6.52) (1.43)

iii) Actuarial Gains (-)/Losses -328.47 34.85 76.25 14.01 -1.03

(550.79) (28.06) (86.89) (11.68) (1.82)

iv) Past Service Cost 582.04 - - - -

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

v) Expected Return on Plan Assets 23.11 - - - -

(93.25) ( - ) ( - ) ( - ) ( - )

vi) Total (i+ii+iii+iv-v) 512.60 358.02 143.86 21.66 2.19

(816.53) (504.50) (147.13) (18.20) (4.85)

vii) Employees' Benefits Expenses :

a) Charged to Profit & Loss Account (Note 39) 860.65 357.55 67.61 21.66 2.19
(356.51) (491.23) (58.34) ( - ) (4.85)

b) Charged to Expenditure During Construction 3.52 0.47 - - -

(Note 5.1) (-1.25) (3.56) (-) (17.29) ( - )

c) Charged to OCI -351.58 - 76.25 - -

(456.26) ( - ) (88.79) ( - ) ( - )

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

(5.01) (9.71) ( - ) (0.91) ( - )

viii) Actual Return on Plan Assets 472.50

(491.63)

72
(d) Effect of half percentage point change in the Discount rate on Employees' Benefit Schemes
(` crore)
Sl. Particulars 0.5 percentage point decrease 0.5 percentage point increase
No. in discount rate in discount rate

i) Gratuity -216.53 204.24

ii) Leave -116.72 110.59

iii) Post Retirement benefit -32.26 31.16

iv) Long Term Service Award -0.99 0.95

v) Retirement Travelling Allowance -4.80 4.69

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

i) Gratuity 175.57 -182.59

ii) Leave 117.21 -121.04

(f) Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post-retirement medical benefits scheme.
(` crore)
Sl. Particulars One percentage point increase One percentage point decrease
No. in medical inflation rate in medical inflation rate

i) Post-retirement Medical Benefits -20.97 18.42

(g) Investments of Gratuity Trust

Particulars % of Investment
As at 31.03.2018 As at 31.03.2017

Insurance Investments 86.25 85.03

Central Government Securities 1.36 1.54

State Government Securities 4.24 4.77

PSU Bonds 8.12 8.63

Cash at Bank 0.03 0.03

Total 100.00 100.00

(h) Actuarial Assumptions

Sl. Description As at 31st March, 2018 As at 31st March, 2017
No.

i) Discount Rate (per annum) 7.70% 7.25%

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

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

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

v) Estimated Rate of Return on Plan Assets 7.70% 7.25%

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

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

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

73
(i) Maturity profile of Defined Benefit Obligations
(` crore)
Period As at 31st March, 2018

Upto 1 year 807.50

Between 1 to 2 years 828.15

Between 2 to 3 years 832.46

Between 3 to 4 years 839.42

Between 4 to 5 years 843.26

Between 5 to 10 years 4398.70

More than 10 years 25597.36

Total Undiscounted Payments related to Past Service 34146.84

Less: Discount for Interest 27806.88

Projected Benefit Obligation 6339.96

51. GENERAL
51.1 Segment Reporting
i) Business Segments: The five Integrated Steel Plants and three Alloy Steel Plants, being manufacturing units, have been considered as primary business segments for
reporting under Ind AS108, Operating Segments' issued by Ministry of Corporate Affairs.
ii) In the opinion of the management, the captive mines are not a reportable business segment of the Company as per Para 27 of Ind AS108, Operating Segments, issued by
Ministry of Corporate Affairs. As captive mines are supplying raw materials to various plants, the Mines have been treated as cost centre for accounting purpose.

51.2 Related Party

As per Ind AS24-`Related Party Disclosures' issued by the Ministry of Corporate Affairs, the names of the related parties, are given below:

A. Name of the related party and nature of relationship

Other Companies
Subsidiary Companies ICVL Mauritius
SAIL-Jagdishpur Power Plant Limited Riverdale Mining (PTY) Limited (RML)
SAIL Refractory Company Limited Minas De Banga (Mauritius) Limited Mozambique
SAIL Sindri Projects Limited ICVL Zambeze Mauritius Limited
Chhattisgarh Mega Steel Limited Promark Services Limited RPU
Joint Venture Companies Benga Power Plant (Mauritius) Limited
NTPC-SAIL Power Company Limited Minas De Benga LDA
Bokaro Power Supply Company Limited Benga Energia SA
SAIL Bansal Service Centre Limited IISCO Ujjain Pipe & Foundry Co. Limited
Mjunction Services Limited UEC-SAIL Information Technology Limited
Bhilai Jaypee Cement Limited Post Employment Benefit Plans
S&T Mining Company Private Limited HSL BSP Provident Fund, Bhilai
SAIL&MOIL Ferro Alloys Private Limited DSP Provident Fund, Durgapur
International Coal Ventures Private Limited Hindustan Steel Ltd Contributory Provident Fund, Rourkela
SAIL-SCI Shipping Private Limited Bokaro Steel Employees Provident Fund, Bokaro
SAIL SCL Kerala Limited IISCO Limited Provident Institution, Burnpur
SAIL-RITES Bengal Wagon Industry Private Limited IISCO Limited Provident Institution, Kolkata
SAIL Kobe Iron India Private Limited IISCO Limited Works Provident Fund, Burnpur
TMTSAL SAIL JV Limited SAIL ASP Provident Fund, Durgapur
SALSAIL JVC Limited Salem Steel Provident Fund, Salem
SAIL-Bengal Alloy Castings Private Limited Visvesvaraya Iron and Steel Plant Employees Provident Fund Trust, Bhadravati
PrimeGold-SAIL JVC Limited SAIL Provident Fund, New Delhi
VSL SAIL JVC Limited Hindustan Steel Provident Fund, Ranchi
Abhinav-SAIL JVC Limited Hindustan Steel Limited, Central Purchase Organisation, Sales & Transport, Calcutta
Provident Fund
N.E. Steel &Galvanising Private Limited
Bharat Refractories Provident Fund, Bokaro
North Bengal Dolomite Limited
IFICO Provident Fund, Ramgarh
Romelt-SAIL (India) Limited
CCSO Provident Fund, Dhanbad
NMDC SAIL Limited
SAIL RMD Establishment and Administrative Offices Employees Provident Fund, Kolkata
Bastar Railway Private Limited
Bolani Ores Mines Provident Fund , Bolani
Associate Company
SAIL Employees' Superannuation Benefit Fund
Almora Magnesite Limited
SAIL Gratuity Fund

74
 B. Key Management Personnel
Shri P. K. Singh
Shri C. Srikanta
Shri Anil Kumar Chaudhary
Shri S. K. Garai
Shri Raman
Shri M. R. Panda
Shri Kalyan Maity (upto 28.02.2018)
Shri Neeraj Mathur
Shri N. Mahapatra
Shri Somdev Das
Shri G. Vishwakarma
Shri Sukumar Hedge
Smt. Soma Mondal
Shri Ashoke Kumar Paul
Shri Atul Srivastava (w.e.f. 12.03.2018)
Shri P. K. Mishra
Shri P. K. Singh
Shri B. N.Thakur
Shri M. Ravi
Shri N. Ramachandran
Shri P. Saidev
Shri M. C. Jain
Shri A. Dasgupta
Shri R. Mitra
Shri A. K. Rath
Shri S. K. Das
Shri Ashwini Kumar
Shri T. S. Prakash
Smt. K. Raman

C. Details of transactions between the Company and the Related Parties during the Year (` crore)
Sl. Particulars Subsidiary/Associate/ Key Management Total Note No. and Account Head
No. Joint Ventures Personnel
i) Purchase of Investment 100.07 100.07 8 : Investments
(100.92) (100.92)
ii) Advance for purchase -0.66 -0.66 11/19 : Other Financial Assets
of shares (100.68) (100.68)
iii) Services rendered 8.58 8.58 36: Other income
(1.92) (1.92)
iv) Rental Income 0.12 0.12
(0.12) (0.12)
v) Dividend Received 74.31 74.31
(90.87) (90.87)
vi) Sale of Goods 3.74 3.74 35 : Revenue from Operations
(2.26) (2.26)
vii) Purchase of Goods 153.51 153.51
(105.08) (105.08)
viii) Purchase of Power 2134.18 2134.18
(2047.53) (2047.53)
ix) Services received 44.95 44.95 42 : Other Expenses
(44.35) (44.35)
1.48 1.48 5 : Capital WIP
(3.19) (3.19)
x) Interest Income 0.74 0.74
(0.51) (0.51)
xi) Managerial remuneration 8.63 8.63 39 : Employees' Benefits Expenses
(7.42) (7.42)

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

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

No. Joint Ventures
i) Investments 1431.54 8: Investments
(1331.65)
ii) Provision for investments 17.68
(4.63)
iii) Other Loans and Advances 39.44
(39.60)
24/29: Loans
iv) Provision for Loans and Advances 16.85
(4.85)
v) Advance for Purchase of shares 3.54 11/19 : Other Financial Assets
(104.27)
vi) Trade Receivable 4.93 9/16 : Trade Receivables
(4.39)
vii) Trade Payable 153.80 25/30 : Trade Payables
(141.69)
viii) Security Deposit 0.33 26/31 : Other financial liabilities
(0.33)

75
E. Disclosure of Material Transactions with Related Parties
(` crore)
For the year ended For the year ended Note No. and
31st March 2018 31st March 2017 Account Head
Purchase of Investment
VSL SAIL JVC Limited - 0.46 8 : Investments
International Coal Ventures Pvt. Ltd. 100.00 98.73
Bastar Railway Ltd. 0.01 -
NMDC SAIL Ltd 0.02 -
Chattisgarh Mega Steel Ltd. 0.04 -
SAIL Rites Bengal Wagon Industries Pvt. Ltd - 1.73
Advance for Purchase of Shares
VSL SAIL JVC - 0.01 11/19 :Other Financial Assets
NMDC SAIL Limited - 0.01
International Coal Ventures Pvt. Ltd - 100.00
SAIL SCL Kerela Ltd -0.66 0.66
Sale of Goods
Bhilai Jaypee Cement Limited 3.74 2.26 35: Revenue from Operations
Purchase of Goods
SAIL Refractory Co. Ltd. 141.81 105.08
Almora Magnesite Ltd. 11.70 -
Purchase of Power
Bokaro Power Supply Co. Pvt. Ltd. 815.72 839.61
NTPC-SAIL Power Co. Ltd. 1318.46 1207.92
Dividend Income
Mjunction Services Limited 5.60 90.87 36: Other income
SAIL Refractory Co. Ltd. 6.31 -
Bokaro Power Supply Co. Pvt. Ltd. 12.40 -
NTPC-SAIL Power Co. Ltd. 50.00 -
Services Rendered
BhilaiJaypee Cement Limited 1.46 1.67
Mjunction Services Limited 5.65 0.15
SAIL-Bansal Services Centre Ltd. 1.12 0.03
Bokaro Power Supply Co. Pvt. Ltd 0.35 0.09
Auction services
Mjunction Services Limited 44.95 44.35 42 : Other Expenses
1.48 3.19 5 : Capital WIP
Conversion Charges
SAIL-Bansal Services Centre Limited 1.77 1.84 42 : Other Expenses

F. During the year, Sales and Trade Receivables include `11770.05 crore (`9009.19 crore) and `2063.36 crore (`1493.07 crore) for transactions with the Central Government
(including Indian Railways) which constitute 20.19% (19.07 %) and 53.31% (49.97 % )of the Sales and Trade Receivables respectively.

51.3 Disclosures of provisions required by Indian Accounting Standards (Ind AS)37 'Provisions, Contingent Liabilities and Contingent Assets:
Brief Description of Provisions :
Mines afforestation costs - Payable on renewal (including deemed renewal)/forest clearance of mining leases to Government authorities, towards afforestation cost at mines for
use of forest land for mining purposes.
Mines closure costs - Estimated liability towards closure of mines, to be incurred at the time of cessation of mining activities.
Overburden backlog removal costs - To be incurred towards removal of overburden backlog at mines over the future years.
(` crore)
Movement of provisions Mines afforestation costs Mines closure costs Over burden removal costs Total

Balance as at 1st April, 2017 238.72 59.62 103.25 401.59

Additions during the Year - 13.19 24.27 37.46

Amounts utilised during the Year - (7.63) (7.56) (15.19)

Unused amount reversed during the Year - - 2.80 2.80

st
Balance as at 31 March, 2018 238.72 65.18 117.16 421.06

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

IISCO Ujjain Pipe and Foundry Co. Limited 2.53* 2.53

(under liquidation) (2.53)* (2.53)
* ` 2.53 crore (`2.53 crore), being doubtful of recovery has been provided for in the books of accounts.
ii) No loans have been given (other than loans to employees), wherein there is no repayment schedule or repayment is beyond seven years; and
iii) There are no loans and advances in the nature of loans, to firms/companies, in which directors are interested.

76
Notes to the Standalone Financial Statements for the year ended 31st March, 2018
52. OPERATING SEGMENT INFORMATION
(` crore)

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

REVENUE
- External Sales
Current Year ended 31st March 2018 15994.93 7168.64 12210.22 14039.97 6811.00 442.88 1344.11 142.18 143.33 58297.26
Previous Year ended 31st March 2017 14135.97 6209.54 9683.32 11796.81 4709.85 383.07 2015.72 169.15 76.81 49180.24
- Inter segment sales
Current Year ended 31st March 2018 299.80 184.88 217.67 211.33 73.02 206.18 12.70 18.36 3881.30 (5105.24) -
Previous Year ended 31st March 2017 639.75 173.36 273.76 234.89 49.44 224.61 9.52 24.78 3406.99 (5037.10) -
- Total Revenue from sale of products
Current Year ended 31st March 2018 16294.73 7353.52 12427.89 14251.30 6884.02 649.06 1356.81 160.54 4024.63 (5105.24) 58297.26
Previous Year ended 31st March 2017 14775.72 6382.90 9957.08 12031.70 4759.29 607.68 2025.24 193.93 3483.80 (5037.10) 49180.24
RESULT
- Operating Profit / (-) Loss before Interest
and Exceptional items
Current Year ended 31st March 2018 1240.52 (58.57) 398.70 804.13 (329.50) (25.84) (118.24) (108.34) 234.52 2037.38
Previous Year ended 31st March 2017 546.87 (724.42) (703.22) 251.85 (1326.32) (1.78) (112.45) (114.88) 78.05 (2106.30)
- Finance cost
Current Year ended 31st March 2018 2822.75
Previous Year ended 31st March 2017 2527.82
- Exceptional items
Current Year ended 31st March 2018 (26.43)
Previous Year ended 31st March 2017 216.74
- Tax expenses
Current Year ended 31st March 2018 (277.23)
Previous Year ended 31st March 2017 (2017.62)
- Profit / Loss (-) for the year
Current Year ended 31st March 2018 (481.71)
Previous Year ended 31st March 2017 (2833.24)
OTHER INFORMATION
- Segment assets
Current Year ended 31st March 2018 28756.68 6400.05 19484.61 14524.30 18770.09 518.32 2459.07 533.47 22743.21 114189.80
Previous Year ended 31st March 2017 27079.13 6006.72 18906.12 14437.15 18836.19 600.26 2554.16 678.16 17441.58 106539.47
- Segment Liabilities (including Long Term
Borrowing
Current Year ended 31st March 2018 7409.47 2364.33 4017.17 3746.95 1922.70 207.46 383.28 79.88 58344.89 78476.13
Previous Year ended 31st March 2017 6872.38 2060.83 3821.43 3284.97 1577.12 232.30 372.66 151.41 52157.31 70530.41
- Capital expenditure
Current Year ended 31st March 2018 2481.46 296.50 1638.38 1362.65 599.44 2.89 7.82 2.15 386.53 6777.82
Previous Year ended 31st March 2017 1683.88 403.56 1212.44 1259.91 635.67 3.71 11.91 2.43 252.43 5465.94
- Depreciation
Current Year ended 31st March 2018 512.86 195.57 721.75 561.87 724.35 11.44 95.74 7.30 234.04 3064.92
Previous Year ended 31st March 2017 419.36 188.37 667.72 487.93 607.05 9.30 96.31 7.30 196.61 2679.95
- Non Cash expenses other than
Depreciation
Current Year ended 31st March 2018 19.00 11.34 15.26 56.00 36.79 2.00 14.17 2.81 58.37 215.74
Previous Year ended 31st March 2017 8.98 16.20 5.45 29.91 26.73 4.48 3.45 2.43 49.92 147.55

77
SOCIAL AMENITIES
(` crore)

Expenses Township Education Medical Social & Co-operative Transport Total Previous
cultural societies & Dairy Year
activities

Employees' Remuneration & Benefits

- Salaries & wages 172.44 70.90 278.19 8.26 1.36 10.04 541.19 582.71

- Company contribution 20.88 8.93 30.19 1.12 0.32 1.47 62.91 66.71
to Provident Fund

- Travel concessions 3.82 0.70 3.67 0.03 0.00 1.70 9.92 17.44

- Welfare expenses 9.54 71.47 73.73 3.70 0.00 1.94 160.38 168.30

- Consumption of medicines 0.00 0.00 65.45 0.80 0.00 0.00 66.25 66.83

- Gratuity 16.05 11.42 18.46 0.59 0.02 0.94 47.48 60.76

Total 222.73 163.42 469.69 14.50 1.70 16.09 888.13 962.75

Stores & Spares 18.83 0.22 6.30 0.44 0.55 0.52 26.86 36.22

Repair & maintenance 91.55 3.47 31.22 0.43 0.29 2.14 129.10 154.68

Power & fuel 417.95 5.54 14.91 4.32 0.00 0.43 443.15 443.65

Miscellaneous expenses 22.26 5.23 24.41 2.79 0.00 9.77 64.46 74.29

Depreciation 43.09 2.87 11.75 0.68 0.30 0.73 59.42 54.69

Total 816.41 180.75 558.28 23.16 2.84 29.68 1611.12 1726.28

Less: Income 263.65 4.10 69.67 0.01 0.00 0.33 337.76 334.01

Net Deficit 552.76 176.65 488.61 23.15 2.84 29.35 1273.36 1392.27

78
 Annexure-I to the Board’s Report

Independent Auditors' Report

Comments Management’s Replies

To the Members of Steel Authority of India Limited

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of Steel Authority of India
Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit
and Loss (including Other Comprehensive Income), the Cash Flow Statement, the Statement of Changes in
Equity for the year then ended, and a summary of significant accounting policies and other explanatory
information (herein after referred to as "Standalone Ind AS Financial Statements"), in which are incorporated
the Returns of 8 branches for the year ended on that date audited by the branch auditors of the Company's
branches.
Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies
Act, 2013 ("the Act") with respect to the preparation of these Standalone Ind AS Financial Statements that
give a true and fair view of the financial position, financial performance (including other comprehensive
income), cash flows and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended).
This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the Standalone Ind AS Financial Statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our
audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the provisions of the Act
and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of
the Act. Those Standards require that we comply with the ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the Standalone Ind AS Financial Statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in
the Standalone Ind AS Financial Statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements,
whether due to fraud or error. In making those risk assessments, the auditor considers the internal financial
control relevant to the Company's preparation of the Standalone Ind AS Financial Statements that give a true
and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used and the reasonableness of the
accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of
the Standalone Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Standalone Ind AS Financial Statements.
Basis for Qualified Opinion
The Company has not provided for:
I. As per 9th National Joint Committee on Steel (NJCS) Agreement dated 1st July, 2014 (which is valid The Company's view is that the Pension Scheme was approved by the
upto 31st December, 2016) signed by the Company, contribution by the Company towards proposed Board in its Meeting held on 9th February, 2017, with a provision that
Pension Fund for non-executive employees was stipulated at 6% of Basic Pay and D.A.. Pending the contribution towards Pension shall be based on the affordability,
revision of the said Agreement and against reservation of representatives of non-executive employees, sustainability and capacity of the company, measured as a percentage
Management of the Company has unilaterally reduced the rate of contribution towards the said Pension of Profit Before Tax(PBT) to average Net-worth. This is in line with the
Fund to 2% of Basic Pay and D.A. and accordingly the Management, in the 4th quarter of the current Office Memorandum dated 21.5.2014 issued by the Department of
year, has written back the provision towards the said Pension Fund for non-executive employees for Public Enterprises. If the percentage of PBT to average Net-worth is
the period from 01.04.2015 to 31.12.2016 to the extent of ` 288.14 crore (Refer Note No.49.4) 8% or above, the contribution towards Pension shall be limited to 6%
of Basic Pay plus DA for Non-executives. Further, if the percentage of
PBT to average Net-worth is lower than 8%, the amount of contribution
will be reduced propor tionately. However, a minimum Pension
contribution is kept at the rate of 2% of Basic Pay plus DA even in
case of loss during a Financial Year. Accordingly, the Board of Directors
of the Company has approved the write back of Pension contribution
for the period from 1.4.2015 to 31.12.2016 in its meeting held on
30.05.2018.

79
 Comments Management’s Replies

II. Wage revision for non-executives is due since 01.01.2017. During the 4th quarter of the current year, The Company's view is that SAIL is a Government Company and is
Management of the Company has reversed adhoc provision already made in last year for the period required to follow Government Guidelines for revising pay scales of
from 01.01.2017 to 31.03.2017 amounting to `77.47 crore. Further the Management has also reversed its employees. The Department of Public Enterprises (DPE) issued
provision created thereof for nine months ended 31st December 2017 amounting to `230.77 crore Office Memorandum dated 24.11.2017 in this regard. The Guidelines
and also not made any provision thereof for the 4th quarter of the year. Pending negotiation with non- inter-alia, state that Management of PSEs would keep in view the
executive employees and as per the experience and past practice of earlier wage revisions for non- affordability and financial sustainability of such wage revision and
executive employees, adhoc provisions from 01.01.2017 to 31.03.2017 of `77.47 crore and from further where the five year periodicity of Wage revision is followed,
01.04.2017 to 31.12.2017 of `230.77 crore should not have been reversed and provision of `76.92 Management has to ensure that negotiated scales of pay for two
crore for the quarter ended 31.03.2018 should have been made. The aggregate impact of this on Loss successive wage negotiations do not exceed the existing scales of
before Tax for the current year amounts to `385.16 crore. (Refer Note No. 49.3) pay of executives/officers and non-unionized supervisors of respective
CPSEs for whom ten years periodicity is being followed. The current
pay scales of Non-executive employees in SAIL for some of the levels
after wage revision effective from 01.01.2012 for 5 years are already
higher than the pay scales of certain Executive employees. Accordingly,
it has been approved by the Board of Directors of the Company to
withdraw the provision of wage revision for Non-executive employees
for the period from 01.01.2017 to 31.03.2017 and also for the nine
months ended 31st December, 2017 and not to make any provision
for the 4th Quarter of Financial Year 2017-18.
III. The Company has not provided for : In respect of item stated at (i), the Company's view is that the Nine
(i) Demand for Entry tax in various states amounting to `1726.16 crore as on 31st March, 2018 Judges Bench of Hon'ble Supreme Court, vide its judgment dated
(Refer Note No.47.2(a)); and 11th November, 2016, upheld the constitutional validity of levy of Entry
Tax by the States and has laid down principles/tests on levy of Entry
(ii) Amount paid to Damodar Valley Corporation (DVC) in earlier years against bills raised for supply Tax Acts in various States. The respective regular benches of the Apex
of power and retained as advance to DVC by Bokaro Steel Plant amounting to `587.72 crore as Court would hear the matters as per laid down principles. Pending
on 31st March, 2018 (Refer Note No.47.2(b)). decision by the regular benches of the Apex Court on levy of entry tax
Had the impact of all the above qualifications been considered, Total Comprehensive Loss (net of tax) for in the States of Chhattisgarh, Odisha, Uttar Pradesh, Jharkhand and in
the year ended 31st March, 2018 would have been `2,238.73 crore against reported Total Comprehensive respect of the case pertaining to Calcutta High Court, the Entry Tax
Loss (net of tax) of `295.39 crore, overstatement of other equity as on 31 st March 2018 by demands under dispute have been treated as contingent liabilities.
`1,943.34 crore, understatement of current liability by `2,399.46 crore and understatement of asset by
In respect of item stated at (ii), the Company's view is that the cases
`456.12 crore.
are sub-judice and pending for adjudication before the various judicial
authorities for a long time.
The above stated disputed demands, stated at III(i) and III(ii) above,
contested on valid and bonafide grounds, have been treated as
contingent liabilities as it is not probable that present obligations exist
as on 31st March, 2018. Therefore, there is no adverse impact on loss
for the year.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, and based
on the consideration of reports of the branch auditors on Financial Statements of the branches referred to
in the Other Matters paragraph below, except for the effect of the matters described in the Basis for Qualified
Opinion paragraph above, the aforesaid Standalone Ind AS Financial Statements give the information required
by the Act in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018 and its
total comprehensive loss (net loss and other comprehensive income), its cash flows and the changes in
equity for the year ended on that date.
Emphasis of Matter
We draw attention to the following:
Gross sales include sales to Government agencies for `4,802.50 crore for the year ended 31st March, 2018
(cumulative upto 31st March, 2018 `12,271.05 crore) which is recognized on provisional contract prices
(Refer Note No. 49.2);
Our opinion is not qualified in respect of this matter.
Other Matters
We did not audit the financial statements of 8 branches included in the Standalone Ind AS Financial
Statements of the Company whose financial statements reflect total assets of `45,784.59 crore as at 31st
March, 2018 and total revenue of `20,798.09 crore for the year ended on that date. The financial statements
of these branches have been audited by the branch auditors whose reports have been furnished to us, and
our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is
based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central
Government in terms of Sub-section 11 of Section 143 of the Act, we give in the Annexure 1, a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, based on our audit and on the consideration of the reports
of the branch auditors on the financial statement of the branches, referred to in other matters above,
we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.

80
 Comments Management’s Replies
b) Except for the effects of the matters described in the Basis for Qualified Opinion paragraph
above, in our opinion proper books of account as required by law have been kept by the Company
so far as appears from our examination of those books.
c) The reports on the accounts of the branch offices of the Company audited under Section 143(8)
of the Act by the branch auditors have been sent to us and have been properly dealt with by us
in preparing this report.
d) The Balance Sheet and the Statement of Profit and Loss including Other Comprehensive Income,
the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in
agreement with the relevant books of account.
e) Except for the effects of the matters described in the Basis for Qualified Opinion paragraph
above, in our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the
Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant
rules issued there under.
f) The matters described in the Basis for Qualified Opinion paragraph above, in our opinion, may
not have an adverse effect on the functioning of the Company.
g) As per notification No. GSR 463(E) dated 5th June, 2015 issued by the Ministry of Corporate
Affairs, Government of India, Section 164(2) of the Companies Act, 2013 is not applicable to the
Company.
h) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in the
"Annexure 2".
i) With respect to the other matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the
best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its
Standalone Ind AS Financial Statements; (Refer Note No.47 and 48.4)
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses;
iii. The Company has not transferred to the Investor Education and Protection Fund an amount
The Matured Deposits have already been claimed by the successors/
of `120,75,460/- being Unclaimed Matured Deposits, which the Company is required to
relatives of the individuals but are pending for submission of document
transfer to the said Fund; and
of proof of legal heir by the claimants. Appropriate procedure is being
iv. Requirements as to disclosure of holding as well as dealings in Specified Bank Notes (SBN) followed for refunding the Matured Deposits to the legal heirs.
and reporting thereon are not applicable for the year.
3. As required by Section 143(5) of the Act, we give in "Annexure-3", a statement on the matters specified
in the Directions issued by the Comptroller and Auditor General of India in respect of the Company.

For Singhi & Co. For V.K. Dhingra & Co. For and on behalf of Board of Directors
Chartered Accountants Chartered Accountants
Firm Registration No.: 302049E Firm Registration No.: 000250N

Sd/- Sd/- Sd/-

[ Pradeep Kumar Singhi ] [ Sanjay Jindal ] (Saraswati Prasad)
Partner Partner Chairman & Managing Director
(M. No.050773) (M. No.087085)

For Chatterjee & Co. For A.K. Sabat & Co.

Chartered Accountants Chartered Accountants
Firm Registration No.:302114E Firm Registration No.:0321012E

Sd/- Sd/-
[ T.N. Ghosh ] [ A.K. Sabat]
Partner Partner
(M. No.050644) (M. No.030310)

Place : New Delhi Place : New Delhi

Dated : 30th May, 2018 Date : 3rd August, 2018

81
Independent Auditors' Report
Annexure '1' to the Independent Auditors' Report

Comments Management’s Replies

Referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements" of our report of even date to the
members of Steel Authority of India Limited on the Standalone Ind AS Financial Statements for the year ended 31st March 2018
i. In respect of its fixed assets:
a. The Company has maintained proper records showing in most cases, full particulars including quantitative details and situation Necessary action is being taken to
of its fixed assets. However, the location and the extent of area in respect of few lands needs to be updated in the fixed assets update the location and extent of area
registers and have to be reconciled with the revenue records as to the extent of holding and location of land. The delay is in respective plants in the fixed assets
attributable to procedural matters involved in ascertaining and reconciling with revenue records maintained by the revenue registers. This is a continuous process.
departments of state governments involved.
b. The fixed assets of the Company have been physically verified by the Management at reasonable intervals in a phased manner
so as to generally cover all the assets once in three years. However, it is observed that certain land and buildings are under Necessary action is being taken to evict
encroachment/unauthorised occupation. As informed, no material discrepancies have been noticed on such verification. In our the occupants from land and buildings
opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its under encroachment/ unauthorised
assets. occupation.
c. According to the information and explanations given to us and on the basis of our examination of records of the Company, the
title/lease deeds of immovable properties are held in the name of Company except in the following cases:
Particulars Freehold Land Leasehold Land Building

Area not in name of the Company 47209.74 acres 17335.30 acres 2 Buildings and
and 1 case 571.24 sq. mts

Gross Block thereof 173.75 crore 151.33 0.57

Net Block thereof 173.75 crore 130.18 0.32

ii. In respect of physical verification of Inventory:

a. The inventories have been physically verified by the Management with reasonable frequency during the year. In certain cases,
the stocks have been verified on the basis of visual survey/estimates.
b. In our opinion and according to the information and explanations given to us, discrepancies noticed on physical verification of
inventories which were not material, have been properly dealt with in the books of account.
iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or
unsecured to companies, firms, limited liability partnership or other parties covered in the register maintained under Section 189 of
the Companies Act, 2013. Hence, the clauses (iii) (a), (iii) (b) and (iii) (c) of Paragraph 3 of the order are not applicable to the
Company.
iv. The Company has not granted any loans or given any guarantee and security covered under Section 185 and 186 of the Companies
Act, 2013. In respect of Investments made by the Company, the provisions of Section 185 and 186 of the Companies Act, 2013
have been complied with.
v. The Company has not accepted any deposit from public within the meaning of Sections 73 to 76 of the Companies Act, 2013 and
rules framed there under, during the year. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under
Section 148(1) of the Act in respect of its products.
We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are
accurate or complete.
vii. According to the information and explanations given to us in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees' State
Insurance, Income-tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Taxes (including Goods and
Services Tax), Cess and other Statutory Dues with the appropriate authorities. According to the information and explanations
given to us, there are no undisputed statutory dues outstanding for a period of more than six months from the date they
became payable, as per books of accounts as at 31st March, 2018.
b. According to the information and explanations given to us, there are disputed statutory dues, which have not been deposited
as on 31st March, 2018 as given herein below:
Statute Nature of Dues Amount Forum where disputes
(` crore) are pending
Sales Tax, VAT & Sales tax, VAT and GST Demands 10.45 Supreme Court
GST 495.40 High Courts
680.79 Sales Tax Tribunals
71.87 Sales Tax Departments
Entry Tax Entry Tax Demands 1,257.26 Supreme Court
544.49 High Courts
606.92 Tribunal
40.46 Department

82
 Comments Management’s Replies

Central Excise Excise Duty 266.80 Supreme Court

Act, 1944 2,375.02 High Courts
1664.36 CESTAT
339.39 Department
0.32 BIFR
Service tax Service Tax 32.76 High Court
127.00 CESTAT
201.25 Department
Customs Duty Customs Duty 1.71 Department
Income Tax Act, TDS on Perks 5.96 Supreme Court
1961 122.85 High Courts
Other TDS matters 0.21 ITAT
27.05 Department
Income Tax Disputes 194.52 High Courts
516.06 ITAT
46.85 Department
TOTAL 9,629.75

viii. The Company has not defaulted in repayment of loans or borrowings to financial institutions, banks, Government or dues to
debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable to the Company.
ix. According to the information and explanations given to us, the Company has not raised any money by way of initial public
offer or further public offer (including debt instruments). Term loans from banks and financial institutions have been applied
for the purpose for which they were obtained.
x. To the best of our knowledge and belief and according to the information and explanations given to us and based on the audit
procedures performed, we report that no case of material fraud by the Company or on the Company by its officers or
employees has been noticed or reported during the year.
xi. As per notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India,
Section 197 of the Companies Act, 2013 is not applicable to the Government Companies. Accordingly, paragraph 3(xi) of the
Order is not applicable to the Company.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly,
paragraph 3(xii) of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company,
transactions with the related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013 where
applicable and details of such transactions have been disclosed in the Standalone Ind AS Financial Statements as required
under Ind AS 24 - `Related Party Disclosures' specified under Section 133 of the Act read with relevant rules.
xiv. According to the information and explanations give to us and based on our examination of the records, the Company has not
made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the
Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph
3(xv) of the Order is not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,
paragraph 3(xvi) of the Order is not applicable to the Company.

For Singhi & Co. For V.K. Dhingra & Co. For and on behalf of Board of Directors
Chartered Accountants Chartered Accountants
Firm Registration No.: 302049E Firm Registration No.: 000250N

Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ Sanjay Jindal ] Sd/-
Partner Partner (Saraswati Prasad)
(M. No.050773) (M. No.087085) Chairman & Managing Director
For Chatterjee & Co. For A.K. Sabat & Co.
Chartered Accountants Chartered Accountants
Firm Registration No.:302114E Firm Registration No.:0321012E

Sd/- Sd/-
[ T.N. Ghosh ] [ A.K. Sabat ]
Partner Partner
(M. No.050644) (M. No.030310)

Place : New Delhi Place : New Delhi

Dated : 30th May, 2018 Date : 3rd August, 2018

83
Independent Auditors' Report
Annexure '2' to the Independent Auditors' Report

Comments Management’s Replies

Referred to in paragraph 2 under the heading "Report on Other Legal and Regulatory Requirements" of our
report of even date to the members of Steel Authority of India Limited on the Standalone Ind AS Financial
Statements for the year ended 31st March 2018

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

We have audited the internal financial controls over financial reporting of STEEL AUTHORITY OF INDIA LIMITED
("the Company") as of 31st March 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements
of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

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

Auditors' Responsibility

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

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

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

Meaning of Internal Financial Controls Over Financial Reporting

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

84
 Comments Management’s Replies

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over
financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st
March 2018, based on the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Singhi & Co. For V.K. Dhingra & Co.

Chartered Accountants Chartered Accountants
Firm Registration No.: 302049E Firm Registration No.: 000250N

Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ Sanjay Jindal ]
Partner Partner
(M. No.050773) (M. No.087085)

For Chatterjee & Co. For A.K. Sabat & Co.

Chartered Accountants Chartered Accountants
Firm Registration No.:302114E Firm Registration No.:0321012E

Sd/- Sd/-
[ T.N. Ghosh ] [ A.K. Sabat ]
Partner Partner
(M. No.050644) (M. No.030310)

Place : New Delhi

Dated : 30th May, 2018

85
Independent Auditors' Report
Annexure '3' to Independent Auditors' Report

Questions Auditors' Comments Management’s Replies

(Referred to in paragraph 3 under the heading "Report on Other Legal and Regulatory Requirements" of our report of even date to the members of
Steel Authority of India Limited on the Standalone Ind AS Financial Statements for the year ended 31st March 2018)

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

A. On the directions under Section 143(5) of Companies Act, 2013

1. Whether the Company has clear title/ Title deeds for freehold land area of 47,209.74 acres are not available. Lease deeds for leasehold land Necessary action is being
lease deeds for freehold and area of 17,335.30 acres are not available. taken for registration of
leasehold land respectively? If not pending title deeds and
please state the area of freehold and eviction of unauthorized
leasehold land for which title/lease occupants of land.
deeds are not available.

2. Whether there are any cases of Waiver/ write offs are done on case to case basis with the approval of competent authorities. Details of
waiver/ write off of debts/loans/ waiver/ write off of debts/ loans/ interest etc. are as under:
interest etc., if yes, the reasons there
for and the amount involved. Waiver of hospital dues from poor patients amounting to `0.03 crore in case of Rourkela Steel Plant.

3. Whether proper records are The Company has maintained adequate records in respect of inventories lying with third parties.
maintained for inventories lying with
third parties & assets received as No assets were received as gifts from the Government or other authorities during the year.
gifts/grants from Govt. or other
authorities.

For Singhi & Co. For V.K. Dhingra & Co. For and on behalf of Board of Directors
Chartered Accountants Chartered Accountants
Firm Registration No.: 302049E Firm Registration No.: 000250N

Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ Sanjay Jindal ] Sd/-
Partner Partner (Saraswati Prasad)
(M. No.050773) (M. No.087085) Chairman & Managing Director
For Chatterjee & Co. For A.K. Sabat & Co.
Chartered Accountants Chartered Accountants
Firm Registration No.:302114E Firm Registration No.:0321012E

Sd/- Sd/-
[ T.N. Ghosh ] [ A.K. Sabat]
Partner Partner
(M. No.050644) (M. No.030310)

Place : New Delhi Place : New Delhi

Dated : 30th May, 2018 Date : 3rd August, 2018

86
 Annexure-II to the Board’s Report
Comments of C&AG
COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT,
2013 ON THE STANDALONE FINANCIAL STATEMENTS OF STEEL AUTHORITY OF INDIA LIMITED FOR THE YEAR ENDED
31ST MARCH 2018

The preparation of Financial Statements of STEEL AUTHORITY OF INDIA LIMITED for the year ended 31st March 2018 in accordance with the financial reporting
framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the Company. The Statutory Auditors appointed by the
Comptroller and Auditor General of India under Section 139(5) of the Act are responsible for expressing opinion on the Financial Statements under section 143 of
the Act based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the Act. This is stated to have been done by
them vide their Audit Report dated 30th May, 2018.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 143(6)(a) of the Act of the Financial Statements
of STEEL AUTHORITY OF INDIA LIMITED for the year ended 31st March, 2018. This supplementary audit has been carried out independently without access to
the working papers of the Statutory Auditors and is limited primarily to inquiries of the Statutory Auditors and company personnel and a selective examination of
some of the accounting records. On the basis of my audit, nothing significant has come to my knowledge which would give rise to any comment upon or
supplement to Statutory Auditors' Report.

For and on the behalf of the

Comptroller & Auditor General of India

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

Place : Ranchi
Dated : 31st July, 2018

87
 Annexure-III to the Board’s Report
Secretarial Audit Report
Form No. MR-3
{Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014}

To, (d) The Securities and Exchange Board of India (Registrars to an

The Members, Issue and Share Transfer Agents) Regulations, 1993 regarding
Steel Authority of India Limited. the Companies Act and dealing with client;

We have conducted the Secretarial Audit of the compliance of applicable (e) The Securities and Exchange Board of India (Issue of Capital
statutory provisions and the adherence to good corporate practices by Steel and Disclosure Requirements) Regulations, 2009;
Authority of India Limited (hereinafter called SAIL/the Company). Secretarial
Audit was conducted in a manner that provided us a reasonable basis for (f) The Securities and Exchange Board of India (Employee Stock
evaluating the corporate conducts/statutory compliances and expressing our Option Scheme and Employee Stock Purchase Scheme)
opinion thereon. Guidelines, 1999;

Based on our verification of the SAIL's books, papers, minute books, forms (g) The Securities and Exchange Board of India (Delisting of Equity
and returns filed and other records maintained by the Company and also the Shares) Regulations, 2009; and
information provided by the Company, its officers, agents and authorized
(h) The Securities and Exchange Board of India (Buyback of
representatives during the conduct of secretarial audit, we hereby report that,
Securities) Regulations, 1998;
in our opinion, the Company has, during the audit period covering the financial
period ended on 31st March, 2018 complied with the statutory provisions (vi) Compliances/processes/systems under following specific applicable
listed hereunder and also that the Company has proper Board- processes and Laws (as applicable to the industry) to the Company are being verified
Compliance-mechanism in place to the extent, in the manner and subject to on the basis of periodic certificate submitted to the Board of Directors
the reporting made hereinafter: of the Company:

We have examined the books, papers, minute books, forms and returns filed (a) Mines Act, 1952
and other records maintained by SAIL for the financial year ended on
31st March, 2018 according to the provisions of: (b) Mines and Mineral (Regulation and Development) Act, 1957

(i) The Companies Act, 2013 (the Act) and the rules made thereunder; (c) The Factories Act, 1948

(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules (d) Explosives Act, 1884
made thereunder;
We have also examined compliance with the applicable clauses of the following:
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed
(a) Secretarial Standards issued by the Institute of Company Secretaries
thereunder;
of India. Generally complied with.
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations
(b) The Securities and Exchange Board of India (Listing Obligations &
made thereunder to the extent of Foreign Direct Investment, Overseas
Disclosure Requirements) Regulations, 2015 with National Stock
Direct Investment and External Commercial Borrowings;
Exchange of India Limited & BSE Limited.
(v) The following Regulations and Guidelines prescribed under the
(c) DPE Guidelines on Corporate Governance for CPSE.
Securities and Exchange Board of India Act, 1992 ('SEBI Act'):-
During the period under review the Company has complied with the provisions
(a) The Securities and Exchange Board of India (Substantial
of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above,
Acquisition of Shares and Takeovers) Regulation, 2011;
subject to the following observations:
(b) The Securities and Exchange Board of India (Prohibition of
Compliance of Regulation 17(10) & 25(4) of Securities Exchange Board of
Insider Trading) Regulations, 2015;
India (Listing Obligations and Disclosure Requirements) Regulations, 2015,
(c) The Securities and Exchange Board of India (Issue and Listing the Company has not carried out the performance evaluation of the Directors.
of Debt Securities) Regulations, 2008;

88
We further report that The Company has complied with the requirement monitor and ensure compliance with applicable laws, rules, regulations and
pertaining to the composition of the Board of Directors to be constituted as guidelines.
per the DPE Guidelines and SEBI (Listing Obligations & Disclosure
Requirements) Regulations, However, during part of the period under review, We further report that during the audit period, there were no specific events/
the composition of Board was not as per requirements, due to absence of actions having a major bearing on the Company's affairs in pursuance of the
requisite number of independent Directors on the board. The changes in the above referred laws.
composition of the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the Act.
For Agarwal S. & Associates,
Generally, adequate notice is given to all Directors to schedule the Board
Company Secretaries,
Meetings, agenda and detailed notes on agenda were sent at least seven days
in advance, and a system exists for seeking and obtaining further information Sd/-
and clarifications on the agenda items before the meeting and for meaningful Sachin Agarwal
participation at the meeting from whole time directors. Partner
FCS No. : 5774
All the decisions made in the Board/Committee meeting(s) were carried out C.P No. : 5910
with unanimous consent of all the Directors/Members present during the
meeting and dissent, if any, have been duly incorporated in the Minutes. Place: New Delhi
Date: 28.05.2018
We further report that there are adequate systems and processes in the
This report is to be read with our letter of even date which is annexed as
Company commensurate with the size and operations of the Company to
"Annexure A" and forms an integral part of this report.

Annexure 'A' to Secretarial Audit Report

To, 5. The Compliance of the provisions of corporate and other applicable
The Members, laws, rules, regulations, standards is the responsibility of management.
Steel Authority of India Limited Our examination was limited to the verification of procedures on test
basis.

6. The Secretarial Audit Report is neither an assurance as to future viability

Our report of even date is to be read along with this letter.
of the Company nor of the efficacy or effectiveness with which the
1. Maintenance of secretarial record is the responsibility of the management has conducted the affairs of the Company.
management of the Company. Our Responsibility is to express an
opinion on these secretarial records based on our audit.
For Agarwal S. & Associates,
2. We have followed the audit practices and processes as were appropriate
Company Secretaries,
to obtain reasonable assurance about the correctness of the contents
of the secretarial records. The verification was done on test basis to
ensure that correct facts are reflected in secretarial records. We believe Sd/-
that the processes and practices, we followed provide a reasonable Sachin Agarwal
basis for our opinion. Partner
FCS No. : 5774
3. We have not verified the correctness and appropriateness of financial
C.P No. : 5910
records and Books of Accounts of the Company.

4. Where ever required, we have obtained the Management representation

about the compliance of laws, rules and regulation and happening of Place: New Delhi
events etc. Date: 28.05.2018

89
 Annexure-IV to the Board’s Report
CORPORATE GOVERNANCE REPORT 2017-18
(a) Company's Philosophy
The philosophy of the Company in relation to Corporate Governance is to ensure transparency, disclosures and reporting that conforms fully to laws,
regulations and guidelines including DPE guidelines, and to promote ethical conduct throughout the Organization, with the primary objective of enhancing
shareholders value, while being a responsible corporate citizen. The Company is committed to conforming to the highest standards of Corporate Governance
in the Country. It recognizes that the Board is accountable to all shareholders and that each member of the Board owes his/her first duty for protecting and
furthering the interest of the Company.
(b) Board of Directors
As on 31st March, 2018, the Board of Directors comprised of a full time Chairman, 5 Whole Time Directors (i.e. Executive Directors) and 8 Non-Executive
Directors (consisting of 1 Government Nominee Director and 7 Independent Directors). During the year, 11 Board meetings were held on 28.04.2017,
30.05.2017, 30.06.2017, 11.08.2017, 22.09.2017, 09.11.2017, 21.11.2017, 12.12.2017, 21.12.2017, 08.02.2018 and 28.03.2018.
The names of Director(s), their attendance at the Board meeting(s) held during 2017-18 as also at the last Annual General Meeting and number of other
directorships held by each of them, as disclosed, are as follows:
Name of the Director Category of Directorship No. of Board Attend- No. of other No. of Board
Meetings ance at Directorships Committee(s) as
attended last AGM held as on Chairman/Member
during 2017-18 31.03.2018 * as on 31.03.2018**
1. Shri P.K. Singh Executive Chairman 11 Yes 1 -
2. Shri Anil Kumar Chaudhary Executive Director 11 Yes - 1-M
3. Shri Kalyan Maity Executive Director 10 Yes - -
(Upto 28.02.2018)
4. Shri Sunil Barthwal, IAS Non-Executive Director 4 - - -
(Upto 11.10.2017) (Govt. Nominee)
5. Shri P.K. Dash Independent Director 5 Yes - -
(Upto 03.10.2017)
6. Prof. Ashok Gupta Independent Director 10 Yes - 1-M
7. Shri Parmod Bindal Independent Director 11 Yes - 1-C
8. Mrs. Anshu Vaish Independent Director 9 Yes - 1-M
9. Dr. N. Mohapatra Executive Director 3 - - -
(Upto 30.06.2017)
10. Shri G. Vishwakarma Executive Director 11 Yes 1 -
11. Shri Raman Executive Director 11 Yes 3 1-M
12. Shri Saraswati Prasad, IAS Non-Executive Director 9 - 4 -
(Govt. Nominee)
13. Dr. Samar Singh Independent Director 11 Yes - 1-C
1-M
14. Shri Nilanjan Sanyal Independent Director 11 Yes - 1-M
15. Ms. Soma Mondal Executive Director 11 Yes - -
16. CA K.S. Chauhan Independent Director 7 - - 1-M
(From 22.09.2017)
17. Prof. N.K. Taneja Independent Director 6 - - -
(From 22.09.2017)
18. Ms. Urvilla Khati Non-Executive Director 5 - - -
(From 11.10.2017 to 28.02.2018) (Govt. Nominee)
19. Shri Atul Srivastava Executive Director 1 - - 1-M
(From 12.03.2018)
* Includes Directorship in Private companies. ** Only Audit Committee and Stakeholders' Relationship Committee are considered for this purpose.
M = Member, C = Chairman
(c) Audit Committee:
(i) Terms of reference:
The primary function of the Audit Committee is to assist the Board of Directors in fulfilling its oversight responsibilities by reviewing the Financial Reports; the
Company's systems of internal financial controls, accounting and legal compliance that Management and the Board have established; and the Company's
auditing, accounting and financial reporting process generally.

90
 The Audit Committee reviews reports of the Internal Auditors, meets (ii) The details of remuneration to Whole Time Directors are given below:
Statutory Auditors, discusses their findings, suggestions and other (`)
related matters and reviews Accounting Policies followed by the Name of Salary Perquisites, Total
Company. The Audit Committee reviews with the Management, the the Director etc.
Quarterly and Annual Financial Statements before their submission to
the Board. Shri P.K. Singh 43,66,223 5,06,929 48,73,152
The minutes of the Audit Committee meetings are circulated to the Board, Shri Anil Kumar 39,87,266 5,23,062 45,10,328
discussed, and taken note of. Chaudhary
(ii) Composition: Shri Kalyan Maity 37,25,174 4,17,788 41,42,962
The Audit Committee of the Board was initially formed in 1998 and has (Upto 28.02.2018)
been reconstituted from time to time. As on 31st March, 2018, the Audit
Committee consisted of CA. Parmod Bindal (Chairman), Prof. Ashok Dr. N. Mohapatra 9,12,778 5,44,085 14,56,863
Gupta, Mrs. Anshu Vaish, Dr. Samar Singh, Shri Nilanjan Sanyal and (Upto 30.06.2017)
Director (Technical). During the last year, the Committee met 8 times Shri G. Vishwakarma 27,66,215 6,61,400 34,27,615
and attendance of the Members at the meetings is given below:
Shri Raman 39,27,267 8,80,206 48,07,473
Name of the Director Status No. of meetings
attended Ms. Soma Mondal 42,37,436 5,13,745 47,51,181
CA Parmod Bindal, Chairman 8 Shri Atul Srivastava 6,99,478 24,072 7,23,550
Independent Director (From 12.03.2018)
Shri P.K. Dash, Member 5
Total 2,46,21,837 40,71,287 2,86,93,124
Independent Director
(upto 03.10.2017) (iii) The Non-Executive Directors (other than Government Nominee Directors)
Prof. Ashok Gupta, Member 8 are paid only sitting fee of `20,000/- for each Board/Board Sub-
Independent Director Committee/Independent Directors Meeting attended by them.
Mrs. Anshu Vaish, Member 7 (iv) The salary of the Whole Time Directors is governed by pay scales and
Independent Director Rules of the Government. No variable incentive is being paid to the
Shri Nilanjan Sanyal, Member 3 Directors except Performance Related Pay, paid to them on annual basis
Independent Director as per DPE guidelines.
(Member from 31.10.2017) (v) Terms & Conditions
Dr. Samar Singh, Member 7 The Whole Time Directors are nominated by Government of India for
Independent Director appointment as Director for a period of five years or till the age of
superannuation or until further orders, whichever is the earliest. They
Shri Raman, Member 8
Director (Technical) are initially appointed by the Board of Directors as Additional Directors
and, thereafter, by the Shareholders in the Annual General Meeting in
(d) Nomination & Remuneration Committee terms of the provisions of the Companies Act, 1956/2013.
(i) SAIL being a Government Company, the nomination and fixation of terms The appointment may, however, be terminated by either side on three
and conditions for appointment as Director, is made by Government of months' notice or on payment of three months' salary in lieu thereof.
India. However, the Company has constituted a Nomination & (e) Stakeholders' Relationship Committee
Remuneration Committee (NRC) to, inter-alia, look into various HR (i) A Stakeholders' Relationship Committee under the Chairmanship
issues, matters prescribed under the Companies Act, 2013 and SEBI of Dr. Samar Singh with CA K.S. Chauhan, Independent Director and
Regulations, finalization of Performance Related Pay (PRP) for the two Whole Time Directors, i.e. Director (Finance) and Director
executives of the Company in terms of Department of Public Enterprises (Personnel), as Members, is functioning to consider and resolve the
Guidelines on Corporate Governance for Central Public Sector grievances of the security holders of the Company including complaints
Enterprises, etc. As on 31 st March, 2018, the Nomination & related to transfer of shares, non-receipt of balance sheet, non-receipt
Remuneration Committee consisted of Mrs. Anshu Vaish (Chairperson), of declared dividend, etc.
Shri P.K. Singh, Chairman, SAIL, Prof. Ashok Gupta, Independent Director, (ii) Name of Compliance Officer: Shri M.C. Jain, ED(F&A) and Company
Shri Nilanjan Sanyal, Independent Director, Prof. N.K. Taneja, Independent Secretary.
Director, and Joint Secretary, Ministry of Steel (Government Nominee (iii) There was no complaint pending for redressal as on 31st March, 2017.
Director) as Members. Number of shareholders' complaints received during the year from
The Ministry of Corporate Affairs(MCA) has vide its notification dated 1st April, 2017 to 31st March, 2018 was 9. All the 9 complaints were
5th June, 2015 notified exemptions to Government Companies from the resolved and no complaint was pending for redressal as on 31st March,
provisions of the Companies Act, 2013 which, inter-alia, provides that 2018.
Sub Sections (2), (3) & (4) of Section 178 regarding appointment, (f) Risk Management Committee: The Company has constituted SAIL
performance evaluation and remuneration shall not apply to Directors Risk Management Committee (SRMC) and the Chief Risk Officer of the
of Government Companies. The appointment of Functional Directors Company is acting as the Secretary of the Committee. The Company
as well as Part Time Non-Official Directors (Independent Directors) on has formulated a Risk Management Policy for dealing with different
the Board of SAIL is made based on nomination/appointment by kinds of risks which it faces in the day to day operations. The Risk
Government of India (GoI). Further, terms & conditions of appointment Management Policy is comprehensive and processes faster risk updation
as well as tenure of all Directors are also decided by GoI and there is a in a dynamic business environment. The SRMC oversees the risk
well laid down procedure for evaluation of Functional Directors and management function in SAIL by addressing issues pertaining to policy
CMD by the Administrative Ministry. formulation as well as evaluation of the risk management function to
assess its continuing effectiveness.
(g) Corporate Social Responsibility Committee: Corporate Social
Responsibility is the Company's commitment to its stakeholders to

91
 conduct business in an economically, socially and environmentally • Strategic Issues & Joint Ventures Committee- To examine and
sustainable manner, whereby organisations serve the interests of the recommend to the Board the issues relating to formation of Strategic
society, by taking responsibility for the impact of their activities. The Alliance(s) and Joint Ventures of the Company and review their
Board of Directors of the Company has constituted Corporate Social performance.
Responsibility Committee and has also approved Corporate Social • Projects Committee- To monitor and recommend to the Board the
Responsibility Policy of the Company. The Policy is available on the matters regarding taking up of new projects, monitoring implementation
website of the Company-www.sail.co.in. of major capital projects vis-a-vis approved plan, etc.
(h) During the year, constitution of the Board Sub Committees (BSCs) was • Operational Issues Committee- To review production performance, sales
reviewed and some of the BSCs were merged and reconstituted. At & marketing performance, operational performance of the mines &
present, besides mandatory committees, the following BSCs have been collieries; to review coordination amongst Mines and Plants for
constituted by the Company so that the issues are examined in detail availability of the required quantity and quality of raw materials for the
before the same are considered by the Board of Directors: Plants, Health & Safety Issues, etc.

(i) Details of Meetings of various Board Sub Committees held during the year and Directors' attendance therein:
Board Sub- Audit Projects Strategic Nomination & Corporate MOU, Vision Health, Stake Strategic Raw Production
Committee Committee Committee Alliance (s) & Remu neration Social & Strategic Safety & holders Issues & Materials &
Joint Ventures Committee Responsibility Planning Environment Relationship Joint (including Marketing
Committee Committee Committee Committee Committee Ventures Mining Committee
Committee Issues)
Committee

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Meetings held 8 8 7 11 2 1 3 1 1 2 2

Directors Attendance

Shri P.K. Singh - - - 3 - - - - - - -

Shri Anil Kumar Chaudhary - 8 7 - 2 1 - 1 1 2 2

Shri Kalyan Maity - - - - - - 0 - - 2 -

(Upto 28.02.2018)

Shri Sunil Barthwal - 1 2 3 - 1 - - - 0 0

(Upto 11.10.2017)

Shri P.K. Dash 5 4 4 - - 1 - - - 1 -

(Upto 03.10.2017)

Prof. Ashok Gupta 8 - - 11 2 1 3 - - 2 -

CA Parmod Bindal 8 7 7 - - - - 1 1 - 2

Mrs. Anshu Vaish 7 - - 8 2 - 3 - 1 - -

Dr. N. Mohapatra - - - - 2 - 1 - - - -
(Upto 30.06.2017)

Shri G. Vishwakarma* - 8 7 - - 1 2 0 1 1 -

Shri Raman* 8 7 - - 0 - 2 - - 1 0

Dr. Samar Singh 7 - - - 2 - 3 1 1 - -

Shri Nilanjan Sanyal 3 8 7 11 - 1 - - 1 2 2

Ms. Soma Mondal - - - - - - - - - - 2

CA K.S. Chauhan
(From 22.09.2017) - 4 - - - - - - - 1 -

Prof. N.K. Taneja - 1 3 - - - - - 1 - -

(From 22.09.2017)

Ms. Urvilla Khati - 2 2 1 - - - - - 0 1

(From 11.10.2017 to
28.02.2018)

Shri Atul Srivastava - - - - - - - - - - -

(From 12.03.2018)

* For part of the year, Shri G. Vishwakarma was holding additional charge of Director(Personnel) and Shri Raman was holding additional charge of Director (Raw
Materials & Logistics)
(j) In addition to above, 2 meetings of Independent Directors were held during the Financial Year 2017-18.

92
(k) General Body Meetings:
Location and time where last three AGMs held:
Financial Year Date Time Location
2016-17 22.09.2017 10.30 a.m. NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001.
2015-16 21.09.2016 10.30 a.m. NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001.
2014-15 24.09.2015 10.30 a.m. NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001.

(i) In the last 3 years, four Special Resolutions (2014-15-1, also provides for adequate safeguards against the victimization of
2015-16-1 and 2016-17-2) were passed in the AGMs and none employees who avail the Mechanism and allows direct access to the
through Postal Ballot. Chairperson of the Audit Committee in exceptional cases. The Vigil
Mechanism has been posted on the website of the Company -
(ii) No Special Resolution is proposed to be conducted through Postal
www.sail.co.in.
Ballot upto the ensuing AGM.
(vii) The Company has complied with the mandatory requirements of the
(l) Disclosures:
SEBI (Listing Obligations and Disclosure Requirements) Regulations,
(i) Pecuniary Relationship: There were no transactions by the Company of 2015 and the Guidelines on Corporate Governance for Central Public
material nature with Promoters, Directors or the Management, their Sector Enterprises issued by the Department of Public Enterprises,
Subsidiaries, relatives, etc. that may have potential conflict with the Government of India, during the Financial Year 2017-18. However, there
interests of the Company at large. The Non-Executive Directors had no was shortfall of a few numbers of Independent Directors for a brief
pecuniary relationships or transactions vis-à-vis the Company during period during the Financial Year 2017-18. SAIL being a Government
the year except receipt of sitting fee paid to Independent Directors for Company, the Directors on its Board are appointed, based on nomination
attending the meetings of the Board/Board Sub-Committee. None of by the Government of India. The matter of nominating the requisite
the Non-Executive Directors held any share/convertible instrument of number of Independent Directors on the Board of SAIL has been taken
the Company. up with the Ministry of Steel, Government of India. Further, the Company
(ii) Maximum tenure of an Independent Director: SAIL being a Government has not fully adopted non-mandatory requirements of the SEBI (Listing
Company, the nomination and fixation of terms and conditions for Obligations and Disclosure Requirements) Regulations, 2015.
appointment of Independent Directors is made by Government of India. (viii) There were two woman Directors on the Board of the Company as on
(iii) Letter of appointment to Independent Directors: SAIL being a Government 31st March, 2018.
Company, Directors on its Board are nominated/appointed by the (ix) Presidential Directives for revision of pay scales of Board level and
Government of India. During the Financial Year 2017-18, 2 Independent below Board level executives in SAIL were issued by the Ministry of
Directors were nominated by the Government of India on the Board of Steel vide file No.7(12)/2008-SAIL(PC) dated 5th October, 2009 w.e.f.
the Company. The letters of appointment were issued to these 1st January, 2007 for ten years i.e.upto 31st December, 2016. The
Independent Directors based on the Terms and Conditions mentioned Company has complied with the same and also the Presidential
by Government of India, while nominating/appointing the Independent Directives on reservation for SC/ST/OBC. The Presidential Directives
Directors. for revision of pay scales of Board level and below Board level executives
in SAIL w.e.f. 1st January, 2017 are yet to be issued by the Ministry of
(iv) Familiarization programme for Independent Directors: An induction cum
Steel.
familiarization programme for Independent Directors is organized on
their appointment, where an overall view of the Company is presented (x) The Independent Directors have submitted the declaration of
to them which includes, inter-alia, details of Organization Structure, independence, as required under Section 149(7) of the Companies Act,
Company's Plants & Units, Product Portfolio, Financial and Operational 2013 stating that they meet the criteria of independence as provided in
Performance, Modernization and Expansion Programme, etc., The sub-section (6) of Section 149 of the Companies Act, 2013.
Company also organizes visits of the Directors to various Plants/Units (xi) Code of Conduct: The Board has laid down a Code of Conduct covering
of the Company for first- hand knowledge of the operations of the Plants/ the requirements to be complied with by all the Board Members and
Units. Further, the Directors are nominated to the training programmes Senior Management Personnel of the Company. An affirmation of
by various institutions such as DPE, SCOPE, IOD, etc. on issues related compliance with the Code is received from them on annual basis. The
to Corporate Governance, etc. The details of familarisation programmes Code of Conduct has been placed on the website of the Company -
imparted to Independent Directors are available on the website of the www.sail.co.in.
Company - www.sail.co.in.
(xii) Policy on Related Party Transactions: In terms of the Listing Agreement,
(v) There were no instances of non-compliance by the Company; no the Board of Directors of the Company has adopted a Policy on Related
penalties, strictures were imposed on the Company by Stock Exchanges Party Transactions. The Policy is placed on the website of the Company
or SEBI or any statutory authority, on any matters related to capital - www.sail.co.in.
markets, during the last three years.
(xiii) Policy on Material Subsidiaries: The Board of Directors of the Company
(vi) The Company has adopted Whistle Blower Policy of Central Vigilance has adopted a Policy for determination of Material Subsidiaries. The
Commission (CVC) and it has not denied access to any personnel to Policy is placed on the website of the Company - www.sail.co.in. The
approach the Audit Committee/ Management on any issue. The Whistle Company did not have any Material Subsidiary during 2017-18.
Blower Policy is available on the website of the Company -
www.sail.co.in. The Company has also formulated a Vigil Mechanism (xiv) In terms of the Regulation 43A of SEBI(Listing Obligations and Disclosure
for conducting the affairs in a fair and transparent manner by adopting Requirements) Regulations, 2015, the Board of Directors of the
highest standards of professionalism, honesty, integrity and ethical Company has adopted Dividend Distribution Policy and the same is
behaviour. All employees of the Company and Directors on the Board uploaded on the website of the Company-www.sail.co.in.
of the Company are covered under this Mechanism. This Mechanism (xv) The financial statements are signed by the Chairman and Director
has been established for employees to report concerns about unethical (Finance) of the Company, who are CEO and CFO respectively of the
behaviour, actual or suspected fraud or violation of Code of Conduct. It Company.

93
(m) Means of Communication: (iii) Date of Book Closure: 21st August, 2018 to 24th August, 2018 (Both
Quarterly results have been published in prominent daily newspapers days inclusive)
as per the requirement, on the following dates: (iv) The Shares of the Company are listed at the following stock exchanges:
Quarter 30.06.2017 30.09.2017 31.12.2017 31.03.2018 Bombay Stock Exchange Ltd.,
Ending Phiroze Jeejeebhoy Towers,
Date of 12.08.2017 10.11.2017 09.02.2018 31.05.2018 Dalal Street, Fort Mumbai-400001
Publication (Stock Code No.500113)
Name of the Business Economic Financial Business The National Stock Exchange of India Limited,
Newspapers Line (E) Times (E) Express (E) Standard(E) Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E)
E-English Dainik Hindustan(H) Jansatta (H) Daink Mumbai- 400051
H-Hindi Jagran (H) Jagran(H) (Code: SAIL)
The Quarterly/Annual results are also made available at the website of The GDRs issued by the Company in 1996 are listed at the London
the Company- www.sail.co.in. The Company displays official news Stock Exchange, 10 Paternoster Square, London EC4M 7LS, UK.
releases also on its website. The Annual Listing fee for 2017-18 has been paid to each of the Stock
(n) General Shareholders Information: Exchange(s).
(i) Annual General Meeting is proposed to be held on 20th September, 2018 (v) The monthly high and low quotes of the Company's shares during each
at NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001. month in the Financial Year 2017-18 at the Bombay Stock Exchange
(ii) Financial Year: 1st April, 2017 - 31st March, 2018. (BSE) and National Stock Exchange (NSE) are indicated below:

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

MONTH & YEAR
HIGH LOW HIGH LOW HIGH LOW HIGH LOW
APRIL' 17 30,184.22 29,241.48 68.55 59.45 9367.15 9075.15 68.60 59.40
MAY'17 31,255.28 29,804.12 63.45 56.25 9649.60 9269.90 63.25 56.25
JUNE' 17 31,522.87 30,680.66 59.30 55.55 9709.30 9448.75 59.30 55.50
JULY' 17 32,672.66 31,017.11 64.90 58.15 10114.85 9543.55 65.00 58.10
AUGUST' 17 32,686.48 31,128.02 64.75 55.35 10137.85 9685.55 64.80 55.20
SEPT.MBER '17 32,524.11 31,081.83 64.50 53.00 10178.95 9687.55 64.45 52.85
OCTOBER' 17 33,340.17 31,440.48 83.20 53.20 10384.50 9831.05 83.25 53.40
NOVEMBER '17 33,865.95 32,683.59 87.95 74.90 10490.45 10094.00 87.80 74.90
DECEMBER' 17 34,137.97 32,565.16 93.70 74.75 10552.40 10033.35 93.75 74.75
JANUARY' 18 36,443.98 33,703.37 101.40 87.60 11171.55 10404.65 101.45 87.60
FEBRUARY'18 36,256.83 33,482.81 98.35 77.40 11117.35 10276.30 98.30 77.05
MARCH' 18 34,278.63 32,483.84 84.80 67.25 10525.50 9951.90 84.85 67.15

(vi) Registrar and Share Transfer Agent (viii) Distribution of Shareholdings as on 31st March, 2018:
M/s. MCS Share Transfer Agents Limited, Shareholding Shareholders Amount
F-65, 1st Floor, Okhla Industrial Area Number % of Total In ` % of Total
Phase-I, New Delhi-110020
Phone No.011-41406149 (1) (2) (3) (4) (5)
(vii) Share Transfer System:
Upto 500 318146 88.66 387737600 0.94
The equity shares of the Company are mandatorily traded in the
dematerialized form. The Share Transfer Committee of the Board meets 501 - 1000 21389 5.96 175087800 0.42
at regular intervals, to expedite the process of transfer of shares well
within the time limit prescribed in this respect under the Listing 1001 - 2000 10088 2.81 155360290 0.38
Agreement.
2001 - 3000 3293 0.92 85336270 0.21

3001 - 4000 1364 0.38 49546720 0.12

4001 - 5000 1285 0.36 61364060 0.15

5001 - 10000 1750 0.49 131338860 0.32

10001 - 50000 1121 0.31 233932820 0.57

50001 - 100000 150 0.04 104830230 0.25

Above 100000 262 0.07 39920718240 96.65

Total 358848 100.00 41305252890 100.00

94
(ix) Shareholding pattern as on 31st March, 2018 (xi) The Company’s Plants/Units/Subsidiaries are located at:
Category No. of %age of STEEL PLANTS
Shares held Shareholding • Bhilai Steel Plant, Bhilai-490001, Chhattisgarh
• Durgapur Steel Plant, Durgapur-713203, West Bengal
A. Promoters' holding
• Rourkela Steel Plant, Rourkela-769011, Odisha
1 Promoters • Bokaro Steel Plant, Bokaro Steel City-827001, Jharkhand

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

2 Persons acting in Concert - - • Visvesvaraya Iron & Steel Plant, Bhadravati-577031, Karnataka
• Chandrapur Ferro Alloy Plant, Chandrapur, Maharashtra
Sub-Total 3097767449 75.00
UNITS
B Non-Promoters Holding
• Central Coal Supply Organisation, Dhanbad-828127, Jharkhand
3 Institutional Investors • Central Marketing Organisation, Ispat Bhawan, 40, Jawahar Lal Nehru
a Mutual Funds and UTI 111011437 2.69 Road, Kolkata-700 071, West Bengal

b Banks & Financial Institutions 138990705 3.36 • Centre for Engineering & Technology, Ranchi-834002, Jharkhand
• Environment Management Division 6, Ganesh Chandra Avenue,
c Insurance Companies 417266678 10.10
(5th Floor), Kolkata-700013, West Bengal
d Foreign Institutional Investors 175039973 4.24 • Growth Division, 97, Park Street, Kolkata-700016, West Bengal
(FIIs)
• Management Training Institute, Ranchi-834002, Jharkhand
Sub-Total 842308793 20.39
• Raw Materials Division, 10, Camac Street, Industry House, Kolkata-
4 Others 700017, West Bengal
a Private Corporate Bodies 37501447 0.91 • Research & Development Centre for Iron & Steel, Ranchi-834002,
Jharkhand
b Indian Public 132797393 3.22
• SAIL Consultancy Division, 16-20 Floor, SCOPE Minar, North Tower,
c NRIs/OCBs 18300863 0.44 Laxmi Nagar District Centre, Delhi-110092
d GDR 117635 0.00 • SAIL Safety Organisation, Ranchi-834002, Jharkhand

e Any other -IEPF 1731709 0.04 • SAIL Refractory Unit, Bokaro-827001, Jharkhand
SUBSIDIARIES
Sub-Total 190449047 4.61
• IISCO-Ujjain Pipe & Foundry Company Limited, Kolkata (under
GRAND TOTAL 4,13,05,25,289 100.00 liquidation)
• SAIL Jagdishpur Power Plant Limited, New Delhi-110003
(x) Status of dematerialization as on 31.03.2018
• SAIL Refractory Company Limited, Salem-636013, Tamilnadu
Particulars No. of Shares % of No. of
Capital Accounts • SAIL Sindri Projects Limited, Chasnala-828135, Jharkhand
• Chhattisgarh Mega Steel Limited, Chhattisgarh
NSDL 4064284716 98.40 211727
(xii) Address for correspondence from shareholders for queries/
CDSL 61431569 1.49 110427 complaints, if any:
Total Dematerialised 4125716285 99.89 322154 M/s. MCS Share Transfer Agents Limited,
F-65, 1st Floor, Okhla Industrial Area, Phase-I,
Physical 4809004 0.11 36694 New Delhi-110020
Total 4130525289 100.00 358848 Phone No.91-11-41406149,
Fax No. 91-11-41709881
Government of India's shares are held in Demat form. E-mail:admin@mcsregistrars.com

For and on behalf of the Board of Directors

Sd/-
(Saraswati Prasad)
Chairman & Managing Director
Place: New Delhi
Dated: 13th August, 2018

95
Auditors' Certificate on Compliance of Conditions of Corporate Governance
To
The Members of
Steel Authority of India Limited
We have examined the compliance of the conditions of Corporate Governance by Steel Authority of India Limited (CIN:L27109DL1973GOI006454) ("the Company")
for the year ended 31st March, 2018, as stipulated in regulations 17 to 27, clauses (b) to (i) of Sub-regulation (2) of Regulation 46 and paragraphs C, D and E of
Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the Regulation") and in the Guidelines
on Corporate Governance for Central Public Sector Enterprises issued by the Department of Public Enterprises, Government of India, to the extent applicable during
the year.
The compliance of the conditions of Corporate Governance is the responsibility of the Management. Our examination was carried out in accordance with the
Guidance Note on Certification of Corporate Governance issued by the Institute of Chartered Accountants of India and was limited to a review of the procedures and
implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression
of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, subject to the following:
The Company has not complied with the requirements of minimum number of independent directors in the composition of Board of Directors during the
following periods for the year ended 31st March, 2018:
(1) 1st April, 2017 to 21st September, 2017 and (2) 4th October, 2017 to 28th February, 2018
We certify that the Company has complied with other conditions of Corporate Governance.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management
has conducted the affairs of the Company.

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

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

(Pradeep Kumar Singhi) (T.N. Ghosh) (Sanjay Jindal) (A.K. Sabat)
Partner Partner Partner Partner
(M. No. 050773) (M. No. 050644) (M.No.087085) (M.No.030310)

Place : New Delhi

Date : 30th May, 2018

96
 Business Responsibility Report

Section A: General Information about the Company B) Promotion of Education, Income Generation & Skill/Vocational Training
1. Corporate Identity Number (CIN): L27109 DL 1973 GOI 006454 C) Empowerment of Women, Care for Senior Citizens and Differently-abled
Persons
2. Name of the Company: Steel Authority of India Limited
D) Environmental Sustainability
3. Registered Address: Ispat Bhawan, Lodhi Road, New Delhi - 110003
E) Promotion of Heritage, Art & Culture
4. Website: www.sail.co.in
F) Promotion of Sports
5. Email id: investor.relation@sailex.com
G) Rural Development: Infrastructure Development
6. Financial Year reported: 2017-18
7. Sector(s) that the Company is engaged in (industrial activity code-wise):
Section C: Other Details
Manufacture of Steel and Steel Products 1. Does the Company have any Subsidiary Company / Companies?
National Industrial Classification (NIC) Code: 330 Yes, the Company has four Subsidiary Companies, viz.:
8. List three key products / services that the Company manufactures / provides (as in A. SAIL Refractory Company Limited.
balance sheet): B. SAIL Jagdishpur Power Plant Limited.
(i) Manufacture of Hot Rolled and Cold Rolled Steel Products C. SAIL Sindri Projects Limited.
(ii) Manufacture of Rails D. Chhattisgarh Mega Steel Limited.
(iii) Manufacture of Wire Rods, Structurals, etc. 2 Do the Subsidiary Company / Companies participate in the BR initiative of the
9. Total number of locations where business activity is undertaken by the Company: parent Company? If yes, then indicate the number of such subsidiary
(i) International locations: Nil company(s).

(ii) SAIL operates and owns five Integrated Steel Plants at Bhilai, Durgapur, Bokaro, Business Responsibility initiatives of the parent company are applicable on the
Rourkela and Burnpur & three Special Steel Plants at Salem, Durgapur and Subsidiary Companies.
Bhadravati. Another Unit, Chandrapur Ferro-Alloy Plant (CFP) produces Ferro- 3 Do any other entity / entities (e.g. suppliers, distributors etc.) that the company
alloys. It also has SAIL Refractory Unit (SRU) at Bokaro, with four refractory does business with; participate in the BR initiatives of the Company? If yes,
manufacturing Units in Jharkhand and Chhattishgarh. then indicate the percentage of such entity / entities?[Less than 30%, 30-60%,
Apart from these, the other Units of SAIL are as follows: More than 60%]

• SAIL Growth Works at Kulti, West Bengal; No

• Raw Materials Division (RMD)- Iron Ore Mines at Kiriburu, Section D: BR Information
Meghahatuburu, Gua, Manoharpur (Chiria) in Jharkhand, Bolani, Kalta, 1. Details of Director / Directors responsible for BR:
Barsua(including Taldih), in Odisha;
a) Details of the Director / Directors responsible for BR policy/policies:
• BSP Mines(Iron Ore) at Rajhara Group, Dalli Group, Rowghat in
Chhattisgarh; • DIN Number 07957068

• RMD flux mines at Kuteshwar in MP; Bhawanathpur, Tulsidamar in • Name: Shri Atul Srivastava
Jharkhand; • Designation: Director (Personnel)
• BSP Flux Mines at Nandini, Hirri, Baraduar in Chhattisgarh; • Details of the BR head
• VISP Flux Mines at Bhadigund, Kenchapuda in Karnataka; Sl.No Particulars Details
• Collieries Division(Coal Mines) at Chasnalla, Jitpur, Tasra, Sitanala in 1 DIN Number (if applicable) 00101601
Jharkhand and Ramnagore in West Bengal; 2 Name M.C. Jain
• Central Marketing Organisation, HQ at Kolkata, 3 Designation Company Secretary
• Central Coal Supply Organisation, Dhanbad, 4 Telephone number 011-24368104
5 e-mail id Secy.sail@sailex.com
• SAIL Consultancy Division at Delhi,
• R & D Center for Iron & Steel, SAIL Safety Organisation, Centre for 2. Principal-wise (as per NVGs) BR Policy/Policies (Reply in Y/N)
Engineering & Technology and Management Training Institute at Ranchi. The National Voluntary Guidelines on Social, Environmental and Economic
• Environment Management Division and Growth Division at Kolkata. Responsibilities of Business (NVGs) released by the Ministry of Corporate Affairs
has adopted nine areas of Business Responsibility. These briefly are as under:
• Central Power Training Institute at Rourkela.
P1 - Businesses should conduct and govern themselves with Ethics, Transparency
• Transport & Shipping at Kolkata.
and Accountability.
SAIL has a pan India distribution network of 37 Branch Sales Offices (BSOs),
P2 - Businesses should provide goods and services that are safe and contribute to
10 Customer Contact Offices (CCOs) and 45 Operational Warehouses.
sustainability throughout their life cycle.
10. Markets served by the Company - Local / State / National / International: National
P3 - Businesses should promote the well-being of all employees.
& International
P4 - Businesses should respect the interests of, and be responsive towards all
Section B: Financial Details of the Company stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
1. Paid up capital (INR) : ` 4,130.53 crore P5 - Businesses should respect and promote human rights.
2. Total turnover (INR) : ` 58,297.26 crore P6 - Businesses should respect, protect, and make efforts to restore the environment.
3. Total loss after taxes (INR) : ` 481.71 crore P7 - Businesses, when engaged in influencing public and regulatory policy, should do
4. Total spending on Corporate Social Responsibility (CSR) as percentage of profit so in a responsible manner.
after tax (%): Although the Company has incurred losses during the Financial Year P8 - Businesses should support inclusive growth and equitable development.
2017-18, however, as a responsible Corporate Citizen, the Company has been
P9 - Businesses should engage with and provide value to their customers and
fulfilling its obligations towards CSR initiatives. Accordingly, the CSR spending
consumers in a responsible manner
during 2017-18 has been `25.70 crore.
5. List of activities in which expenditure in 4 above has been incurred :
A) Promotion of Healthcare including Drinking Water facilities and Sanitation.

97
 Engagement & CSR

Customer Relations
Business Ethics

Responsibility

Human Rights
Well Being of

Public Policy
Environment
Stakeholder
Employees
Sl.

Product
Questions

CSR
No.

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

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

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

2a. if answer to Sl. No. 1 against any principle , is 'No', please explain why: (Tick up to 2 options)

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

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

98
3. Governance related to BR: ii) Reduction during usage by consumers (energy, water) has been achieved
• Indicate the frequency with which the Board of Directors, Committee since the previous year?
of the Board or CEO assess the BR performance of the Company. Within The information is not available.
3 months, 3-6 months, Annually, More than 1 year.
3. Does the Company have procedures in place of sustainable sourcing (including
Annually. transportation)? If yes, what percentage of your inputs was sourced sustainably?
• Does the Company publish a BR or a Sustainability Report? What is Also, provide details thereof, in about 50 words or so.
the hyperlink for viewing this report? How frequently it is published? In addition to regular supplies from captive mines of SAIL, certain key input materials
Yes, the Company publishes printed versions of its Sustainability Report. like iron ore, coal, fluxes (limestone, dolomite), etc. are sourced either through
An electronic version of the report is uploaded on the Company's website competitive buying or long term arrangement with established suppliers. Environment
in the intervening year as a web update. The hyperlink for viewing the Management System (EMS) is in place with ISO-14000 certification of Plants &
Sustainability report of the Company is http://www.sail.co.in/ Units. There are continuous efforts to minimize impact of carbon footprint.
Transportation of all raw materials from mines and ports to Plants is carried through
rail. Well laid out systems and procedures of competitive buying reinforce sustainable
Section E : Principle-wise Performance sourcing of Company's requirement.
Principle 1: Business should conduct and govern themselves with Ethics, Transparency
4. Has the Company taken any steps to procure goods and services from local and
and Accountability
small producers, including communities surrounding their place of work? If
1. Does the policy relating to ethics, bribery and corruption cover only the Company? yes, what steps have been taken to improve the capacity and capability of local
Yes / No. and small vendors?
Does it extend to the Group / Joint Ventures / Suppliers / Contractors / NGOs / In line with extant policy of Government of India, certain categories of goods &
Others? services are procured from Small & Medium Enterprises (SMEs). Thrust is given to
No, the policies implemented by SAIL, in these regards covers employees of the local procurement as per "Make in India" Policy of Government of India. Additionally,
Company as well as suppliers/ contractors/ bidders, etc. The Company has put in major Plants have local level Policy which enables procurement of goods & services
place Conduct, Discipline and Appeal (CDA) Rules which prescribe the code of from local and small producers including communities like Mahila Samiti / Samaj,
conduct as applicable mostly to the executives of the Company whereas the non- Self Help Groups(SHGs), etc. in the vicinity of Plant locations. Vendor Development
executive workmen are covered under the code of conduct /misconduct as Programs are organized periodically by the SAIL Plants which help in capacity and
mentioned in the Standing Orders (tripar tite agreement between Union and capability building of local and small vendors.
Government representatives) for respective Plants/Units of SAIL. In July, 2007, the 5. Does the Company have a mechanism to recycle products and waste? If yes,
Company implemented Integrity Pact for all contracts / procurements valuing what is the percentage of recycling of products and waste? (Separately as <5%,
` 100 crores and above. Subsequently, to cover more contracts/procurements., 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
threshold value has been reduced to ` 20 crores and all tenders related to handling
SAIL Plants and Mines have been applying the principle of 4Rs (reduce, recover,
contracts in CMO departmental warehouses, irrespective of threshold value, are
recycle and reuse) to strive towards better utilization of wastes including different
also covered under Integrity Pact. Guidelines on banning of business dealings with
slags, flue dust, sludge, used refractory bricks, etc. The BF slag, which contributes
bidders/contractors/ agencies dealing with SAIL have been implemented in the
major portion of total solid wastes, is granulated and used as an input material to
Company and made part of the Integrity Pact, wherein it has been envisaged that
the cement industries. On the other hand, the BOF slag is used partly in blast
appropriate action shall be taken against the signatories of Integrity Pact, if they are
furnace as substitute of limestone and also in sinter making to certain extent. Apart
found involved in unethical practices including corruption and bribery.
from these, BOF slag is utilized in road making and as rail track ballasts inside Plant
2. How many stakeholder complaints have been received in the past financial boundary. During 2017-18, 90.44% of BF slag and 59.12% of BOF slag were utilised.
year and what percentage was satisfactorily resolved by the management? If
Other wastes like mill scale and lime/dolo fines are utilized fully through sinter route
so, provide details thereof, in about 50 words or so.
and entire waste refractory materials are sold to the outside agencies. The belief of
A total of 776 complaints from various sources including those referred by Central reuse and recycle is firmly embedded in the organizational approach of SAIL and
Vigilance Commission, Ministry of Steel were received in SAIL Vigilance during several initiatives have accordingly been adopted to maximise the utilisation of
2017-18 and the same were examined vis-à-vis extant systems and procedures, solid waste generated from various operations.
policies, rules, etc. followed in the Company and actions as per rules, including
During 2017-18, around 30% of solid wastes were re-cycled internally out of 83%
systemic improvements were advised against the irregularities noticed in these
of solid wastes utilisation. Moreover, by-product gases like Coke Oven gas, BF gas
complaints and the same were agreed to by the management for implementation.
and BOF gas are used as fuel at the different shops of the Plants.
Hence, it may be construed that almost 100% complaints were satisfactorily resolved
as per procedure in vogue. Principle 3: Business should promote the well-being of all employees
Principle 2: Business should provide goods and services that are safe and contribute 1. Please indicate the Total number of employees.
to sustainability throughout their life cycle As on 1.4.2018 total number of employees in SAIL : 76870 (Executives-11718;
1. List up to 3 of your products or services whose design has incorporated social Non-Executives - 65152)
or environmental concerns, risks and / or opportunities. 2. Please indicate the Total number of employees hired on temporary/contractual/
i) Thermo Mechanically Treated Earthquake Resistant Reinforcement Bars (TMT casual basis.
EQR Rebars) with improved ductility which enhance the safety of concrete As on 1.4.2018, number of Contract labour engaged at SAIL Plants/Units : 66186
structures and buildings, thereby improving safety and security of occupants, 3. Please indicate the Number of permanent women employees
while also reducing the socio-economic risks associated with earthquake
damages. As on 1.4.2018, permanent women employees in SAIL : 4416 (Executives- 899;
Non-Executives - 3517)
ii) Seismic resistant grade TMT rebars as per specification Fe 500 S for enhanced
safety in high risk seismic zones, improving safety and security of occupants 4. Please indicate the Number of permanent employees with disabilities.
while also reducing the socio-economic risks associated with earthquake As on 1.4.2018, total number of permanent employees with disabilities in SAIL
damages resistance. Plants/Units : 865 (Executives - 136; Non-Executives - 729)
iii) Parallel flange structural sections which deliver better mechanical properties 5. Do you have an employee association that is recognized by management?
while using less steel, thereby enabling designing of safer structures while Recognition to trade unions having majority representation of non-executive
simultaneously reducing the steel consumption. This adds value for the employees is granted as per process, at the Plant/Unit level. At apex level, National
customer, leads to more efficient usage of steel in the Country and shall further Joint Committee for Steel Industry (NJCS), a bipar tite forum consisting
have a beneficial impact on natural resource utilization, environment and socio- representatives from five Central Trade Union viz. INTUC, AITUC, CITU, HMS &
economic development of Country. BMS and representatives from recognized union of main Plants, provides
2. For each such product, provide the following details in respect of resource use representation to all non-executive employees. Executives are represented by the
(energy, water, raw material etc) per unit of product (optional): respective Officer Associations (OA) of their Plants/Units which are affiliated to
i) Reduction during sourcing / production / distribution achieved since the Steel Executives' Federation of India (SEFI)-the apex body representing executives
previous year throughout the value chain in SAIL.
Consumption per unit of Current Previous 6. What percentage of your permanent employees is members of this recognized
production in SAIL Year year employee association?
Almost all employees of SAIL are members of either Trade Unions or Officers'
Specific Energy consumption (Gcal/TCS) 6.60 6.60 Associations.
Particulate matter (PM) emission load (kg/TCS) 0.74 0.77 7. Please indicate the Number of complaints relating to child labour, forced labour,
involuntary labour, sexual harassment in the last financial year and pending, as
on the end of the financial year
99
 2. How many stakeholder complaints have been received in the past financial
Information pertaining to Child labour/Forced labour/Involuntary labour and
year and what percent was satisfactorily resolved by the management?
Discriminatory Employment is given in the table below:
9 number of complaints were received from the stakeholders during 2017-18 and
Sl. Category No.of No. of complaints all the complaints were resolved during 2017-18.
No. complaints filed pending as at end
Principle 6: Business should respect, protect, and make efforts to restore the
during the of the
environment
financial year financial year
1. Does the policy of the related Principle 6 cover only the Company or extends to
1. Child labour/forced Nil Nil the Group/Joint Ventures/Suppliers/Contractors/NGOs and others?
labour/ involuntary
Policy and Strategy formulation at SAIL is a well-structured process guided by
labour
Company's Vision and Credo. Elements of Sustainability are ingrained in SAIL's
2. Sexual harassment 2 Nil vision, strategies, and policies. The basket of policies includes Quality, Environmental,
and Safety, etc. all of which encompass concepts of Sustainability. The policies on
3. Discriminatory Nil Nil Human Resource, Occupational Health and Safety, Communication, Maintenance,
employment Township, Energy Management and Social Accountability etc. at the plant level also
promote concept of Sustainable Development.
8. Percentage of your under mentioned employees were given safety & skill up- The Corporate Environmental Policy of SAIL affirms to maintain a clean and
gradation training in the last year? sustainable environment in and around its Plants and Mines through sound
• Permanent employees = 49 environmental practices in all its activities, through adoption of cleaner and energy-
• Permanent women employees =49 efficient technologies, restore the mined out landscapes and abandoned sites
ecologically and ensure regular monitoring and review of environmental performance
• Casual / Temporary / Contractual employees = 100 through a robust audit mechanism and a transparent reporting system and
• Employees with disabilities = 49 continuously monitor emission, discharge and ambient air quality and make data
Training need of each individual in the organization is assessed. Under PMS, each available in the public domain.
executive is asked to inform the Management as to what training needs to be given Implementation of an Environment Management System linked to ISO 14001
to him to help him perform his duties in a better way. standards, which is essentially a voluntary initiative, has become an effective tool
Also occupational training, safety and skill up-gradation training (technical / in SAIL towards protection of the environment. Through adoption of this system,
managerial / functional) are imparted to all permanent employees including female SAIL addresses the concerns of the stakeholders.
employees and differently abled employees. During the year 2017-18, total 41,355 2. Does the company have strategies/initiatives to address global environmental
(49.08% of total employees) regular employees were trained on various safety & issues such as climate change/global warming etc.? Y/N. If yes, please give
skill up-gradation related programs. hyper link for web page etc.
SAIL is in the process of implementation of current Modernization & Expansion Yes. SAIL, as a responsible corporate entity, has taken up various initiatives for
Programme wherein contractual workers are engaged in various activities. 100% climate change mitigation through technology up-gradation, sourcing of good quality
of contractual workers are given safety awareness training which is mandatory for of raw materials, retrofitting of new pollution control facilities and revamping of
issuing gate pass to Plant premise. Skill up-gradation of contractual workers is existing pollution control systems etc. All these efforts, with a special thrust on
also taken care of while on job at their work place. adoption of cleaner and energy -efficient technologies, have achieved a reduction
Principle 4: Businesses should respect the interests of, and be responsive towards in specific carbon dioxide emission by around 4.09% during the last five years.
all stakeholders, especially those who are disadvantaged, vulnerable and The on-going project on "Carbon sequestration through afforestation at RSP", a
marginalized. Technology Mission project under R&D Master Plan", is contributing towards
1. Has the Company mapped its internal and external stakeholders? Yes / No sequestration of CO2 in and around the area.
Yes SAIL has also adopted Sustainable Development Policy and has been publishing its
Corporate Sustainability Report, as per Global Reporting Initiative (GRI) guidelines,
2. Out of the above, has the Company identified the disadvantaged, vulnerable during the last six years. The report is available in the Corporate Citizenship section
and marginalized stakeholders? of the Company's website (www.sail.co.in).
There has never been any discrimination in the treatment and rights available to Company's strategies/initiatives to address global environmental issues such as
stakeholders. climate change/global warming is available on website. The hyperlink for the same
3. Are there any special initiatives taken by the Company to engage with the is: https:// www.sail.co.in/ sites/ default/ files/Climate_Change.pdf
disadvantaged, vulnerable and marginalized stakeholders? If so, provide details 3. Does the Company identify and assess potential environmental risk? Y/N.
thereof, in about 50 words or so.
Yes. The Company has adopted the Enterprise Risk Management (ERM) Policy and
Some of the special initiatives undertaken by the Company are as under: has also established a well-defined mechanism for identification and assessment
(i) In an attempt to bring the future generations of tribals to the mainstream, of potential environmental risks and accordingly, mitigation plans are developed on
about 293 tribal children are being provided free education along with boarding, regular basis.
lodging, nourishing and wholesome food, clothing, free medical treatment, 4. Does the company have any project related to Clean Development Mechanism?
sports and cultural opportunities in a conducive atmosphere at Gyanodya If so, provide details thereof, in about 50 words or so. Also, if yes, whether any
Chatrawas, Bhilai & BSP School Rajhara, Birhors (a tribe near extinction) environmental compliance report is filed.
under Gyanjyoti Yojna at Bokaro, Saranda Suvan Chhatravas, Kiriburu, RTC
Residential Public School, Manoharpur Ore Mines. SAIL had long ago identified several energy-efficient projects which were
implemented during the modernization cum expansion program for availing the
(ii) Eklavya Archery Academy set up at Kiriburu mines is providing sports platform Clean Development Mechanism (CDM) benefits. Out of that, six projects as given
to 21 youths (09 girls & 12 boys) from neighbouring tribal belt, who are
below were validated as Verified Emission Reduction (VER) projects under the
undergoing rigorous 'Modern Recurve Archery' coaching free of cost. RMD
guidance of the VCS and ISO Standards:
is providing them free schooling, hostel, food, and other facilities along with
the sports coaching. The Cadets have brought laurels proving their might in 1. Introduction of Blast furnace gas firing system in boiler no.6 of PBS (PP-1) at
national and international championship. Bhilai Steel Plant
(iii) With the objective to facilitate homely environment with honour and respect, 2. Introduction of Blast furnace gas firing system in boiler unit B of Power Plant
34 senior citizens have been accommodated at Siyan Sadan in 20 fully- at IISCO Steel Plant
furnished rooms with recreational facilities. Bhilai Steel Plant is arranging 3. Installation of Multi-slit Burners in both the strands of Sinter Plant-I at Rourkela
daily meals, regular health check-ups, cultural programs like Kavi Sammelan, Steel Plant
Musical Evening, Bhajan Sandhya and festival celebrations for welfare and
4. Heat recovery system from sinter cooler of Sinter Plant #3 at Bhilai Steel
recreation of these elderly inmates.
Plant
Principle 5: Business should respect and promote human rights
5. Thyristorisation of blast furnace #3 & 4 skip hoist electric supply for better
1. Does the policy of the Company on human rights cover only the Company or operation efficiency and energy conservation at Bhilai Steel Plant
extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?
6. Installation of multi-slit burners in Sinter Plant at Bokaro Steel Plant
The Company does not have a stated Human Rights Policy. However, most of the
aspects are covered in the Company's Code of Business Conduct and Ethics as Around 1.37 Million Tonnes of CO2 equivalent carbon credits have accrued.
well in various human resource policies and practices. It's a voluntary approach. So, there is as such no mandatory requirement to file its
compliance.

100
5. Has the company undertaken any other initiatives on clean technology, energy benefits to the communities in which it operates. For any organization, CSR begins
efficiency, renewable energy etc.? Y/N. If yes, please give hyper link for web with being aware of the impact of its business on society.
page etc. With the underlying philosophy and a credo to make a meaningful difference in
Yes. Clean technologies vis-à-vis energy-efficient technologies have been introduced people's lives, SAIL has been structuring and implementing CSR initiatives right
during the on-going modernization cum expansion program of SAIL. Some of such from the inception. These efforts have seen the obscure villages, where SAIL Plants
major technologies are: Taller Coke Oven Batteries with Coke Dry Cooling Plant are located, turn into industrial hubs, today.
(CDCP), mammoth Blast Furnaces with Top gas pressure Recovery Turbine (TRT) SAIL CSR initiatives are undertaken in conformity to the prevalent statutes like 'The
& Coal Dust Injection (CDI) System, Sinter Plants with heat recovery facility from Companies Act, 2013', CSR Rules, 2014 and DPE Guideline on CSR & Sustainability,
sinter cooler, Walking Beam Reheating Furnace in Rolling Mills, Gas-fired boilers 2014. SAIL carries out CSR projects in and around steel townships, mines and far
for power generation, etc. flung locations across the Country in the area of rural development including
SAIL has already started taking up various renewable energy initiatives like installation Development of Model Steel Villages, Providing Medical and Health Care,
of solar water heating and street lighting systems inside plant premises and in Immunization, Ante and Post Natal Care, Education, Acess to Water Facilities,
nearby villages. In recent time, solar water heating system has been installed at the Roadside Tree Plantation, Environment, Women Empowerment, Sustainable Income
Hospital of RSP. Generation through Self Help Groups, Promotion of Sports, Art, Culture, etc.
Further, to fulfill SAIL's Renewable Energy Commitment to the Government of India, 2. Are the programmes / projects undertaken through in-house team / own
SAIL has set a target of installation of 200 MW renewable energy power plants by foundation / external NGO / government structures / any other organization?
the year, 2019 through NSPCL (a JV company of NTPC and SAIL). Some of the Under the guidance of the Board level CSR Committee, the CSR activities/projects
major initiatives taken towards implementation of renewable energy projects are as listed in the approved Annual Plan of SAIL, are implemented using internally or
under: through an identified suitable agency or through providing financial assistance to
• 7 MW capacity Solar Power Plant at Bhilai. NGOs/ specialized/ agencies/institutions/societies, as per the provisions of
• 20 MW capacity Solar Power Plant at Durgapur. Companies Act, 2013, CSR Rules and CSR Policy of the Company.
• 2 MW capacity roof top Solar Power Plant on the buildings of Bokaro Steel Since CSR projects are long term / continuous in nature like providing education,
Plant. healthcare, mid day meals, sustainable livelihood generation through Self Help Groups
(SHGs), etc., some of the projects are implemented through specialised agencies,
• 20-25 MW capacity Solar Power Plant at Kulti. depending on expertise available with them like, Mid-day meal project through
• 17 MW capacity roof-top Solar Power Plants on various buildings of SAIL Akshaya Patra Foundation at Bhilai & Rourkela, Comprehensive Water & Sanitation
including warehouses. Project in the peripheral villages of Rourkela in association with Gram Vikas,
Initiatives towards application of clean technology, energy-efficiency, renewable Sustainable livelihood generation projects at Bokaro through Jharcraft and different
energy etc. may be referred to the hyperlink, as mentioned https://www.sail.co.in/ projects at various Plant/Unit locations through Ramakrishna Mission, etc.
sites/ default/files/ClimateChange.pdf. Except in cases, where financial assistance is provided for a specific CSR project
6. Are the Emissions/Wastes generated by the Company within the permissible proposed by a specific agency, the external implementation partners having strong
limits given by CPCB/SPCB for the financial year being reported? credentials and track records, are identified for undertaking CSR projects, as defined
in 'The Companies Act-2013'.
The "Consent to Operate" certificates are issued to SAIL Plants and Mines by the
respective State Pollution Control Boards (SPCBs). As per the conditions stipulated 3. Have you done any impact assessment of your initiative?
in the "Consent to Operate", the respective norms for air emission and discharge In SAIL, every Plant / Unit is having a high level Committee headed by senior EDs/
quality are mostly complied with. In addition, various wastes generated are handled GMs, which recommends the CSR projects to be taken up by the respective Plant
and disposed in environment-friendly manner as per the existing set of guidelines/ / Unit. The same Committee monitors the progress and execution of these projects
rules. These are also reported by the Company to the CPCB/SPCB on regular basis. as well as undertakes audit of social benefits achieved from CSR initiatives
7. Number of show cause/legal notices received from CPCB/SPCB which are undertaken.
pending (i.e. not resolved to satisfaction) as on end of financial year. The impact assessment/social audit of the Company's CSR & Sustainability Initiatives
Two directions from the Central Pollution Control Board (CPCB) were received by has also been done through external professional agencies in the past.
two different Plants during the Financial Year 2017-18. One direction has already In addition, SAIL has a strong internal mechanism to monitor the activities/ initiatives
been complied with in totality. To comply with the other one, time bound action undertaken under CSR & Sustainability. The Board Sub-Committee on CSR reviews/
plans have been developed in consultation with the concerned statutory bodies monitors CSR & Sustainability activities on regular basis.
which are at different stages of implementation. 4. What is the Company's direct contribution to community development projects
Principle 7: Businesses, when engaged in influencing public and regulatory policy, - Amount in INR and the details of the projects undertaken?
should do so in a responsible manner In accordance with the provisions of Company's Act , 2013, at least 2% of the
1. Is your Company a member of any trade and chambers or association? If yes, average profit before tax (PBT) of the immediately preceding three financial years is
name only those major ones that your business deals with. allocated for undertaking CSR activities in a fiscal. Inspite of the fact that SAIL is
The Company is a Member of: incurring losses since Financial Year 2015-16, SAIL Board allocated budget in order
to sustain the ongoing CSR activities in consonance with Schedule-VII of Companies
A. Federation of Indian Chambers of Commerce and Industry (FICCI) Act, 2013. CSR budget allocation and expenditure since 2014-15 are as follows:
B. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) (` crore)
C. World Steel Association (WSA) Year CSR Allocation CSR Expenditure
D. Standing Conference of Public Enterprises (SCOPE)
2014-15 78.00 35.04
E. Indian Steel Association
F. Institute for Steel Development & Growth 2015-16 100.16 76.16
(includes unspent amount of
G. All India Organisation of Employees(AIOE) `42.96 crs. of FY 2014-15)
H. Employee Federation of India (EFI)
2016-17 29.34 29.05
2. Have you advocated / lobbied through above associations for the advancement (includes unspent amount of
or improvement of public good? Yes / No; if yes, specify the broad areas (drop `24 crs. of FY 2015-16)
box: Governance and Administration, Economic Reforms, Inclusive Development
Polices, Energy Security, Water, Food Security, Sustainable Business Principles, 2017-18 26.00 25.70
Others) (includes unspent amount of
Yes, Sustainable Business Principles and Waste Management are the ones amongst `0.29 crs. of FY 2016-17)
the stated broad areas. Apart from the exclusive CSR budget, SAIL also spends to the tune of `350 crore
Principle 8: Businesses should support inclusive growth and equitable development annually for providing social facilities to Non-SAIL populace residing in the peripheral
areas of SAIL Plants/Units either free or at a very nominal cost, such as Healthcare,
1. Does the Company have specified programmes / initiatives / projects in pursuit Education, Sanitation, Drinking water, infrastructure like roads & street lights,
of the policy related to Principle 8? If yes, details thereof. promotion of Sports, Art and Culture, etc.
Yes, SAIL's Social Objective is synonymous with Corporate Social Responsibility SAIL Plants/Units are located mostly in backward areas that inhabit majority of
(CSR). Apart from the business of manufacturing steel, the objective of the Company disadvantaged, vulnerable, marginalized, SC, ST and minorities. For the upliftment
is to conduct business in ways that produce social, environmental and economic

101
of such populace, SAIL had developed 79 Model Steel Villages located in peripheral 5. Have you taken steps to ensure that this community development initiative is
backward areas and these are maintained regularly. successfully adopted by the community? Please explain in 50 words, or so.
The details of CSR activities undertaken are as follows: SAIL Plants/Units have always conducted informal stakeholder engagements in
SAIL had achieved 100% compliance by construction of 672 toilets in schools their respective areas. This exercise supports in identifying their needs, local issues
without toilets/having dysfunctional toilets falling within the peripherals of SAIL requiring attention and intervention. Formal as well as informal mode have been
Plants & Units acknowledging the Prime Minister's ambitious drive for promotion of established with multi-stakeholders to resolve various issues affecting day to day
sanitation and hygiene in remote areas, under "Swachch Vidyalay Campaign". life from time to time as per the necessity. For peripheral villages, dialogues are
normally held with the Sarpanch/Panch of the village or the village representatives
SAIL is providing healthy & nutritious Mid-Day Meals to around 68,000 students in in an informal manner as and when required in connection with the peripheral
630 Govt. schools daily in and around Bhilai and Rourkela, in association with developmental activities. A well structured organizational mechanism is in place at
Akshya Patra Foundation. Plants/Units for planning CSR activities in consultation with local authorities like
• Education: To develop the society through education, SAIL is supporting over Panchayats, District & State Authorities and various stakeholders.
77 schools within and outside its steel townships to provide modern education Further, reforms/updates of the processes based on the feedback received from
to more than 40,000 children. Special Schools (Kalyan Vidyalaya) for BPL the beneficiaries are incorporated so that the sense of ownership is generated
category students are run at integrated steel plant locations with facilities of among the community and it adopts the social interventions in letter and spirit.
free education, mid-day meals, uniforms, shoes, text books, stationary items,
school bag, water bottles and transportation in some cases, are running under Principle 9: Businesses should engage with and provide value to their customers and
CSR. consumers in a responsible manner
• Healthcare: SAIL's extensive & specialised Healthcare Infrastructure provided 1. What percentage of customer complaints / consumer cases is pending as on
basic and specialized healthcare to about 3,43,000 villagers during the financial the end of financial year?
year 2017-18. Above 4100 health camps and Ambulances/MMUs provided No quality complaints were pending with the Company as of the beginning of the
the medical facilities like free health check-up, lab investigations, medicine, financial year 2017-18. During the year, a total of 1,146 complaints were received
immunization, at the doorsteps of over 1,20,000 villagers during 2017-18. from various customers. All these complaints were satisfactorily settled within the
• Over 79 Lakh people across 450 villages have been connected to mainstream year and no complaint was pending at the end of the year.
by SAIL since its inception by constructing and repairing of roads. Over 8100 2. Does the Company display product information on the product label, over and
water sources have been installed during last five years thereby enabling easy above what is mandated as per local laws? Yes / No / N.A. / Remarks (additional
access to drinking water to about 50 lakh people living in far-flung areas. information)
• SAIL is maintaining parks, water bodies & botanical gardens in its townships SAIL provides detailed Test Certificates to customers with each supply. Packet/
and plantation & maintenance of over 3 lakh trees at various locations have coil/Heat number, size, quality of the item is displayed on the label for source
also been carried out for environment conservation. authentication. In case of branded products, product brand is also displayed. Over
• Vocational and specialised skill development trainings have been imparted and above, if there is an additional requirement from the customer, attempt is made
to 601 village youths and 1468 women folks in 2017-18 in industrial & to incorporate the same on the label.
agriculture techniques, soft skills, handlooms, empowering them to bond with 3. Is there any case filed by any stakeholder against the Company regarding unfair
mainstream. About 845 rural youths have been sponsored for ITI trainings at trade practices, irresponsible advertising and / or anti-competitive behaviour
various ITIs. during the last five years and pending as of end of financial year? If so, provide
• Sports, Art &Culture: Various sports coachings and events viz. SAIL Khel details thereof, in about 50 words or so.
Mela at Bhilai, Samvardhan, Rural Sports in Football and Kabbadi at Rourkela, There is no such case pending as of end of financial year.
Durgapur and Burnpur, Archery championships, Kho-Kho and Ladies Cricket 4. Did your Company carry out any consumer survey / consumer satisfaction trends?
Coachings and matches at West Singhbhum, Jharkhand & Keonjhar, Odisha
witnessed participation of about 10,000 rural youths. 2,300 folk artists, Yes, Customer satisfaction is measured in the form of Customer Satisfaction Index
students and viewers participated in the Lok Kala Mahotsava organised at (CSI) for Key Accounts which is computed every month based on the feedback
Bhilai and Grameen Lokotsavas at Thanod and Aheri villages of Durg. collected from identified Key Customers on parameters pertaining to Product Quality,
Service and Price. Key customers are identified at Branch level as well as national
level, and the lists are updated on a yearly basis.

102
Consolidated Balance Sheet Annexure-V to the Board’s Report
As at 31st March, 2018 (` crore)

Note No. As at As at
31st March, 2018 31st March, 2017

ASSETS
Non-current assets
(a) Property, Plant and Equipment 4 57169.57 48776.83
(b) Capital work-in-progress 5 18395.43 23275.39
(c) Investment property 6 0.83 0.86
(d) Intangible assets 7 1455.03 1522.58
(e) Investments accounted for using the equity method 2555.01 2410.41
(f) Financial assets
(i) Investments 8 73.85 65.05
(ii) Trade receivables 9 - -
(iii) Loans 10 451.46 453.52
(iv) Other financial assets 11 162.64 257.68
(g) Deferred tax assets (net) 12 4161.98 3848.75
(h) Current tax assests (net) 13 190.39 235.81
(i) Other non-current assets 14 1060.10 1080.12
85676.29 81927.00
Current Assets
(a) Inventories 15 17024.30 15736.09
(b) Financial assets
(i) Trade receivables 16 3870.99 2934.69
(ii) Cash and cash equivalents 17 (i) 94.00 140.64
(iii) Other bank balances 17 (ii) 251.55 238.19
(iv) Loans 18 63.92 72.73
(v) Other financial assets 19 2787.64 2268.18
(c) Other current assets 20 5639.78 4285.78
29732.18 25676.30
Assets classified as held for sale 21 32.50 11.94
TOTAL ASSETS 115440.97 107615.24
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 22 4130.53 4130.53
(b) Other equity 23 32816.12 32911.73
(c) Non-controlling interest 0.01 0.01
36946.66 37042.27
Liabilities
Non-current liabilities
(a) Financial Liabilities
(i) Borrowings 24 29777.16 19087.48
(ii) Trade payables 25 6.38 7.36
(iii) Other financial liabilities 26 1179.36 1365.93
(b) Provisions 27 3974.42 3596.40
(c) Other non-current liabilities 28 138.33 151.29
35075.65 24208.46
Current liabilities
(a) Financial liabilities
(i) Borrowings 29 12244.32 19813.04
(ii) Trade payables 30 7526.64 5218.41
(iii) Other financial liabilities 31 14190.32 12781.96
(b) Other current liabilities 32 7144.75 5609.56
(c) Provisions 33 2312.63 2924.87
(d) Current tax liabilities (net) 34 - 16.67
43418.66 46364.51
TOTAL EQUITY & LIABILITIES 115440.97 107615.24
Significant Accounting Policies 3
The accompanying notes are an integral part of these consolidated financial statements.
For and on behalf of Board of Directors
Sd/- Sd/- Sd/-
(M.C.Jain) (Anil Kumar Chaudhary) (P. K. Singh)
Company Secretary Director (Finance) Chairman
DIN: 03256818 DIN: 06398868
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ T N Ghosh ] [ Sanjay Jindal ] [ A K Sabat ]
Partner Partner Partner Partner
M. No. 050773 M. No. 050644 M. No. 087085 M. No. 030310
Place : New Delhi
Dated : May 30, 2018

103
Consolidated Statement of Profit & Loss
For the year ended 31st March, 2018
(` crore)
st st
Note No. Year ended 31 March, 2018 Year ended 31 March, 2017

Income
Revenue from operations 35 58966.16 49828.95
Other income 36 415.19 449.48
Total Income 59381.35 50278.43
Expenses
Cost of materials consumed 37 26737.90 21161.45
Changes in inventories of finished goods and work in progress 38 1138.82 117.34
Excise duty 1406.14 5327.18
Employee benefits expense 39 8865.87 8963.78
Finance costs 40 2822.75 2527.82
Depreciation and amortisation expense 3065.97 2681.62
Other expenses 41 16181.82 14192.11
Total expenses 60219.27 54971.30
Profit/(Loss) before Exceptional items, share of net profits of (837.92) (4692.87)
Share of Profit/(Loss) in investments accounted for using equity 284.86 193.92
Profit/(Loss) before Exceptional items and tax (553.06) (4498.95)
Less: Exceptional items 41A (26.43) 216.74
Profit/(Loss) before tax (526.63) (4715.69)
Tax expense
Current tax 7.06 30.64
Deferred tax (287.90) (2005.30)
Earlier years 35.61 15.14
Total tax expense (245.23) (1959.52)
Profit/(Loss) for the year (281.40) (2756.17)
Other Comprehensive income
A (i) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans 275.32 (546.07)
Gain and losses from investments in equity instruments 8.79 3.02
(ii) Income tax relating to items that will not be reclassified to profit or loss (97.80) 188.78
B (i) Items that will be reclassified to profit or loss
Share of the OCI of associate and joint ventures accounted 0.49 0.52
(ii) Income tax relating to items that will be reclassified to profit or loss - -
Other Comprehensive Income/(Loss) for the year 186.80 (353.75)
Total Comprehensive Income/(Loss) for the year (94.60) (3109.92)
Profit attributable to owners
Owners of the parent (281.40) (2756.17)
Non-controlling interest - -
(281.40) (2756.17)
Total comprehensive income for the year
Owners of the parent (94.60) (3109.92)
Non-controlling interest - -
(94.60) (3109.92)
Earnings per equity share
Number of equity shares (face value ` 10/- each) 4130525289 4130525289
Basic and diluted earnings per share (`) (0.68) (6.67)

Significant Accounting Policies 3

The accompanying notes are an integral part of these consolidated financial statements.

For and on behalf of Board of Directors

Sd/- Sd/- Sd/-
(M.C.Jain) (Anil Kumar Chaudhary) (P. K. Singh)
Company Secretary Director (Finance) Chairman
DIN: 03256818 DIN: 06398868
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ T N Ghosh ] [ Sanjay Jindal ] [ A K Sabat ]
Partner Partner Partner Partner
M. No. 050773 M. No. 050644 M. No. 087085 M. No. 030310
Place : New Delhi
Dated : May 30, 2018

104
Consolidated Statement of Changes in Equity
For the year ended 31st March, 2018

A. Equity Share Capital (` crore)

Particulars Balance as at Changes in equity Balance as at
1st April, 2016 share capital 31st March, 2017

Equity shares with voting rights 4,130.39 0.02 4,130.41

Equity shares without voting rights 0.14 (0.02) 0.12
Balance as at Changes in equity Balance as at
1st April, 2017 share capital 31st March, 2018

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

Equity shares without voting rights 0.12 - 0.12

B. Other Equity (` crore)

Reserves and Surplus Other comprehensive

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

Balance as at 1st April, 2016 503.58 235.10 5,100.72 1,449.96 28,680.91 (0.22) 50.84 36,020.89 - 36,020.89
(Loss) for the year - - - - (2,756.17) - - (2,756.17) - (2,756.17)
Other comprehensive income profit/(loss) - - - - (357.29) 3.02 0.54 (353.74) - (353.74)
for the year
Total comprehensive income/(loss) for the year - - - - (3,113.46) 3.02 0.54 (3,109.91) - (3,109.91)
Transfer from bond redemption reserve - - - (84.09) 84.09 - - - -
Transfer to bond redemption reserve - - - 607.77 (607.77) - - -
Transfer to general reserve 2.04 (2.04) - -
Changes due to additional investment in 0.75 - - - - - - 0.75 - 0.75
joint ventures
Transaction with owners in their capacity as owners: - - - - - - - - - -
Dividends - - - - - - - - - -
Tax on dividends - - - - - - - -
Transaction with non-controlling interest - - - - (0.01) - (0.01) 0.01 -
Balance as at 31st March, 2017 504.33 235.10 5,102.76 1,973.64 25,041.72 2.80 51.38 32,911.72 0.01 32,911.73
Balance as at 1st April, 2017 504.33 235.10 5,102.76 1,973.64 25,041.72 2.80 51.38 32,911.72 0.01 32,911.73
(Loss) for the year - - - - (281.40) - - (281.40) - (281.40)
Other comprehensive income profit/(loss) - - - - 177.52 8.79 0.49 186.80 - 186.80
for the year
Total comprehensive income/ (loss) for the year - - - - (103.88) 8.79 0.49 (94.60) - (94.60)
Transfer from bond redemption reserve - - - (239.75) 239.75 - - - -
Transfer to bond redemption reserve - - - 606.80 (606.80) - - -
Transfer to general reserve 1.38 (1.38) - -
Changes due to additional investment in 6.59 - - - - - - 6.59 - 6.59
joint ventures
Transaction with owners in their capacity as owners: - - - - - - - - - -
Dividends - - - - (6.31) - - (6.31) - (6.31)
Tax on dividends - - - - (1.28) - - (1.28) - (1.28)
Transaction with non-controlling interest - - - - (0.01) - - (0.01) - (0.01)
Balance as at 31st March, 2018 510.92 235.10 5,104.14 2,340.69 24,561.81 11.59 51.87 32,816.11 0.01 32,816.12

For and on behalf of Board of Directors

Sd/- Sd/- Sd/-
(M.C.Jain) (Anil Kumar Chaudhary) (P. K. Singh)
Company Secretary Director (Finance) Chairman
DIN: 03256818 DIN: 06398868
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ T N Ghosh ] [ Sanjay Jindal ] [ A K Sabat ]
Partner Partner Partner Partner
M. No. 050773 M. No. 050644 M. No. 087085 M. No. 030310
Place : New Delhi
Dated : May 30, 2018

105
Cash Flow Statement
For the year ended 31st March, 2018 (` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

A. CASH FLOW FROM OPERATING ACTIVITIES

Profit/(Loss) before tax (526.63) (4715.69)
Adjustments for:
Depreciation and amortisation expenses 3065.97 2681.62
Loss/(Gain) on disposal of fixed assets (net) 72.80 48.17
Interest income 9.79 4.85
Dividend income (1.85) (1.05)
Finance costs 2822.75 2527.82
Loss on sale of non-current investments - (0.01)
Bad debts and provision for doubtful advances/receivables 85.42 74.47
Other provisions 130.78 73.20
Share of profit from joint ventures (284.86) (193.92)
Unclaimed balances and excess provisions written back (172.26) (97.62)
Operating Profit/(Loss) before working capital changes 5201.91 401.84
Changes in assets and liabilities:
Trade receivables (849.46) 239.88
Loans, other financial assets and other assets (1747.53) (439.41)
Trade payable 2307.25 1235.40
Other financial liabilities, other liabilities and provisions 2813.91 1810.70
Inventories (1405.91) (1100.85)
Cash flow from operating activities post working capital changes 6320.17 2147.56
Income tax paid (net) (137.05) 12.54
Net cash flow from operating activities (A) 6183.12 2160.10
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant & equipment (including capital work-in-progress) and intangibles (6757.62) (5454.28)
Proceeds from sale/disposal of property, plant & equipment 153.09 27.53
Purchase of current and non-current investments 126.65 1.60
Movement in fixed deposits (net) (13.36) (37.82)
Interest received (9.79) (4.85)
Dividend received 1.85 1.05
Net cash flows/(used) in investing activities (B) (6499.18) (5466.77)
C. CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings (net) 10689.68 1591.77
Proceeds from short-term borrowings (net) (7568.72) 4238.18
Finance cost paid (2851.54) (2527.82)
Dividend paid (including tax) - -
Net cash flows/(used) in financing activities (C) 269.42 3302.13
Decrease in cash and cash equivalents (A+B+C) (46.64) (4.54)
Cash and cash equivalents at the beginning of the year 140.64 145.18
Cash and cash equivalents at the end of the year (Note No. 17(i)) 94.00 140.64
The amendments to Ind AS 7 Cash Flow Statement requires the entity to provide disclosures that enables users of Financial Statements to evaluate changes in liabilities arising from
financial activities, including both changes arising from cash flows and non cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in Balance
Sheet for liabilities arising from financial activities, to meet the disclosure requirement. This amendment has become effective from 1st April, 2017 and the required disclosure is made
below. There is no other impact on the Financial Statements due to this amendment.
(` crore)
Non cash changes
As at Cash Flows Fair Value Current/Non Current As at
31.03.2017 Changes Classification 31.03.2018
Borrowings - Non Current 19087.48 7417.97 - (3271.71) 29777.16
Current Maturities of Long Term Debt 2381.74 (2381.74) - 3271.71 3271.71
Borrowings - Current 19813.04 (7568.72) - - 12244.32
The cash flow statement has been prepared under the indirect method as set out in Ind AS-7, Statement of Cash Flows.
The accompanying notes are an integral part of these consolidated financial statements.
For and on behalf of Board of Directors
Sd/- Sd/- Sd/-
(M.C.Jain) (Anil Kumar Chaudhary) (P. K. Singh)
Company Secretary Director (Finance) Chairman
DIN: 03256818 DIN: 06398868
In terms of our report of even date
For Singhi & Co. For Chatterjee & Co. For V K Dhingra & Co. For A K Sabat & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm Registration No.302114E Firm Registration No.000250N Firm Registration No.321012E
Sd/- Sd/- Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ T N Ghosh ] [ Sanjay Jindal ] [ A K Sabat ]
Partner Partner Partner Partner
M. No. 050773 M. No. 050644 M. No. 087085 M. No. 030310
Place : New Delhi
Dated : May 30, 2018

106
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
1. Corporate Information their relative interests in the subsidiary. Any difference between the amount
Nature of Operations of the adjustment to non-controlling interests and any consideration paid
or received is recognised within equity.
Steel Authority of India Limited ('SAIL' or the 'Parent Company'), a public
sector undertaking conferred with Maharatna status by Government of Associates and joint ventures
India, together with its subsidiaries, joint ventures and associate (collectively Associates
referred to as the 'Group') is engaged primarily in steel manufacturing Investment in entities in which there exists significant influence but not a
business in the country. controlling interest are accounted for under the equity method i.e. the
General information and statement of compliance with Ind AS investment is initially recorded at cost, identifying any goodwill/capital
The consolidated financial statements of the Group have been prepared in reserve arising at the time of acquisition, as the case may be, which will be
accordance with the Indian Accounting Standards as notified under section inherent in investment. The carrying amount of the investment is adjusted
133 of the Companies Act 2013 read with the Companies (Indian Accounting thereafter for the post acquisition change in the share of net assets of the
Standards) Rules 2015 (by Ministry of Corporate Affairs ('MCA')). The Group investee, adjusted where necessary to ensure consistency with the
has uniformly applied the accounting policies during the periods presented. accounting policies of the Group. The consolidated statement of profit and
loss includes the Group's share of the results of the operations of the
The consolidated financial statements for the year ended 31st March 2018 investee. Dividends received or receivable from associate ventures are
were authorized and approved by the Board of Directors on 30th May, 2018. recognised as a reduction in the carrying amount of the investment.
2. Summary of significant accounting policies Unrealised gains on transactions between the Group and associates are
eliminated to the extent of the Group's interest in these entities.
a) Overall consideration
Joint ventures
The consolidated financial statements have been prepared using the
significant accounting policies and measurement bases summarised below. Investments in joint arrangements are classified as either Joint operations
These were applied uniformly during the period presented. or Joint ventures. The classification depends on the contractual rights and
obligations of each investor, rather than the legal structure of the Joint
Basis of preparation
arrangement.
The financial statements have been prepared on going concern basis under
• Joint ventures - Interest in joint venture are accounted for using the
the historical cost basis except for the following -
equity method, after initially being recognised at cost. The carrying
• certain financial assets and liabilities which are classified as fair value amount of the investment is adjusted thereafter for the post acquisition
through profit and loss or fair value through other comprehensive change in the share of net assets of the investee, adjusted where
income; necessary to ensure consistency with the accounting policies of the
• assets held for sale, at the lower of the carrying amounts and fair Group. The consolidated statement of profit and loss includes the
value less cost to sell Group's share of the results of the operations of the investee. Dividends
received or receivable from joint ventures are recognised as a
• defined benefit plans - plan assets measured at fair value; and reduction in the carrying amount of the investment. Unrealised gains
Basis of consolidation on transactions between the Group and joint ventures are eliminated
Subsidiaries to the extent of the Group's interest in these entities.

Subsidiaries are all entities (including structured entities) over which the • Joint operations - The Group recognises its direct right to the assets,
Group has control. The Group controls an entity when the Group is exposed liabilities, revenue and expenses of Joint operations and its share of
to, or has rights to, variable returns from its involvement with the entity and any jointly held or incurred assets, liabilities, revenue and expenses.
has the ability to affect those returns through its power to direct the relevant These have been incorporated in the financial statement under the
activities of the entity. Subsidiaries are fully consolidated from the date on appropriate heading.
which control is transferred to the Group. They are deconsolidated from When the Group's share of losses in an equity-accounted investment equals
the date when control ceases. Profit/(loss) and Other Compresensive or exceeds its interest in the entity, including any other unsecured long-
Income ('OCI') of subsidiaries acquired or disposed of during the period term receivables, the Group does not recognise further losses, unless it
are recognised from the effective date of acquisition, or up to the effective has incurred obligations or made payments on behalf of the other entity.
date of disposal, as applicable. All the consolidated subsidiaries have a b) Business combinations
consistent reporting date of 31st March, 2018.
The Group applies the acquisition method in accounting for business
The Group consolidate the financial statements of the parent and its combinations. The consideration transferred by the Group to obtain control
subsidiaries on line by line basis adding together the items of assets, of a subsidiary is calculated as the sum of the fair values of assets
liabilities, equity, income and expenses. Intercompany transactions, transferred on acquisition-date, liabilities incurred and the equity interests
balances and unrealised gains on transactions between group companies issued by the Group, which includes the fair value of any asset or liability
are eliminated. Unrealised losses are also eliminated unless the transaction arising from a contingent consideration arrangement. Acquisition costs
provides evidence of an impairment of the transferred asset. Accounting are expensed as incurred.
policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group. Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair values on
Non-controlling interests, presented as part of equity, represent the portion acquisition-date.
of a subsidiary's statement of profit and loss and net assets that is not held
by the Group. Profit/(loss) and each component of OCI are attributed to the Goodwill is initially measured at cost, being the excess of the aggregate of
equity holders of the Parent Company and to the non-controlling interests, the consideration transferred and the amount recognised for non-controlling
even if this results in the non-controlling interests having a deficit balance. interests, and any previous interest held, over the net identifiable assets
The Group attributes total comprehensive income or loss of the subsidiaries acquired and liabilities assumed. If the fair value of the net assets acquired
between the owners of the parent and the non-controlling interests based is in excess of the aggregate consideration transferred, the resulting gain
on their respective ownership interests. on bargain purchase is recognised in OCI and accumulated in equity as
capital reserve. However, if there is no clear evidence of bargain purchase,
The Group treats transactions with non-controlling interests that do not the entity recognise the gain directly in equity as capital reserve, without
result in a loss of control, as transactions with equity owners of the group. routing the same through OCI.
Such a change in ownership interest results in an adjustment between the
carrying amounts of the controlling and non-controlling interests to reflect Where settlement of any part of cash consideration is deferred, the amount

107
 payable in future is discounted to their present value as at the date of balance sheet at cost, less any subsequent accumulated depreciation and
exchange. The discount rate used is the Group's incremental borrowing impairment losses. The initial cost at cash price equivalence of property,
rate, being the rate at which the similar borrowing could be obtained from plant and equipment acquired comprises its purchase price, including import
an independent financier under comparable terms and condition. duties and non-refundable purchase taxes, any directly attributable costs
Contingent consideration is classified either as equity or financial liability. of bringing the assets to its working condition and location and present
Amount classified as financial liability are subsequently re-measured to value of any obligatory decommissioning costs for its intended use.Plant
fair value with changes in fair value recognised in statement of profit and and Machinery also include assets held under finance lease.
loss. In case of self-constructed assets, cost includes the costs of all materials
Business combinations involving entities or businesses under common used in construction, direct labour, allocation of overheads, directly
control have been accounted for using the pooling of interest method. The attributable borrowing costs including trial run expenses (net of revenue)
assets and liabilities of the combining entities are reflected at their carrying Spares having useful life of more than one year and having value of ` 10
amounts. No adjustments have been made to reflect fair values, or to lakhs or more in each case,are capitalised under the respective heads as
recognise any new assets or liabilities except changes made to harmonise and when available for use.
the accounting policies. Profit or loss arising on the disposal of property, plant and equipment is
c) Current versus Non-current classification recognised in the Statement of Profit and Loss.
The Group presents assets and liabilities in the balance sheet based on 3.1.2 Subsequent Cost
current/ non-current classification. An asset is classified as current when Subsequent expenditure is recognised as an increase in the carrying amount
it is: of the asset or recognised as a separate asset, as appropriate, only when
• Expected to be realised or intended to sold or consumed in normal it is probable that future economic benefits derived from the cost incurred
operating cycle will flow to the Group and the cost of the item can be measured reliably.The
carrying amount of replaced item (s) is derecognised. .
• Held primarily for the purpose of trading
Any repairs of ` 50 lakhs or more of property, plant and equipment are
• Expected to be realised within twelve months after the reporting
recognised in the carrying amount of the item if it is probable that the
period, or
future economic benefits of the costs incurred will flow to the Group. The
• Cash or cash equivalent unless restricted from being exchanged or carrying amount of the replaced item (s)is derecognised.
used to settle a liability for at least twelve months after the reporting 3.1.3 Depreciation
period
Depreciation on tangible assets and investment property is provided on
All other assets are classified as non-current. straight line method, considering residual value of 5% of the cost of the
A liability is classified as current when: asset, over the useful lives of the assets, as specified in Schedule II of the
• It is expected to be settled in normal operating cycle Companies Act, 2013 except in case of Factory Buildings, Plant and
Machinery, Water Supply & Sewerage and Railway Lines & Sidings and
• It is held primarily for the purpose of trading components thereof, where useful life is determined by technical experts.
• It is due to be settled within twelve months after the reporting period, The useful life assumed by the technical experts is as under:
or
Asset category Estimated useful life (in years)
• There is no unconditional right to defer the settlement of the liability
for at least twelve months after the reporting period Factory Buildings 35 to 40
All other liabilities are classified as non-current. Plant and Machinery 10 to 40
The operating cycle is the time between the acquisition of assets for Water Supply & Sewerage 25 to 40
processing and their realisation in cash and cash equivalents. Deferred tax Railway Lines & Sidings 35 to 40
assets and liabilities are classified as non-current assets and liabilities.
2.1 Functional and Presentation Currency For these classes of assets, based on technical evaluation carried out by
external technical experts, the Group believes that the useful lives as given
The Financial Statements have been presented in Indian Rupees (`), which above best represent the period over which Group expects to use these
is the Group's functional currency. All financial information presented in ` assets. Hence, the useful lives for these assets are different from the useful
have been rounded off to the nearest two decimals of crore unless otherwise lives as prescribed under Part C of Schedule II of the Companies Act, 2013.
stated.
The estimated useful lives and residual values of depreciable/amortisable
2.2 Use of Estimates and Management Judgement assets are reviewed at each year end, with the effect of any changes in
In preparing the financial statements in conformity with Group's Accounting estimate accounted for on a prospective basis.
Policies, management is required to make estimates and assumptions that Where the historical cost of a depreciable asset undergoes a change, the
affect reported amounts of assets and liabilities and the disclosure of depreciation on the revised unamortised depreciable amount is provided
contingent liabilities as at the date of the financial statements, the amounts over the residual useful life of the asset. Depreciation on addition/deletion
of revenue and expenses during the reported period and notes to the during the year is provided on pro-rata basis with reference to the month of
Financial Statements. Actual results could differ from those estimates.Any addition/deletion. Assets costing up to `5000/- are fully depreciated in the
revision to such estimates is recognised in the period in which the same is year in which they are put to use.
determined.
Depreciation on Bhilai Expansion Power Project (pp-II) located at Bhilai is
3 SIGNIFICANT ACCOUNTING POLICIES charged on straight line method following the rates and methodology notified
A summary of the significant accounting policies applied in the preparation by the CERC Tariff Regulations in accordance with Schedule II of The
of the financial statements is given below. These accounting policies have 'Companies Act, 2013.
been applied consistently to all the periods presented in the financial Depreciation on capital spares is provided over the useful life of the spare
statements. or remaining useful life of the mother asset, as reassessed, whichever is
3.1 Property, Plant and Equipment lower.

3.1.1 Recognition and Measurement 3.2 Intangible assets

Tangible Assets 3.2.1 Recognition and measurement

Property, plant and equipment held for use in the production or/and supply Mining Rights
of goods or services, or for administrative purposes, are stated in the Mining Rights are treated as Intangible Assets and all related costs thereof

108
 are amortised on the basis of annual production to the total estimated (including process scrap) are valued at lower of cost and net realisable
mineable reserves. In case the mining rights are not renewed, the balance value of the items of the respective Plants/Units. In case of identified
related cost will be charged to revenue in the year of decision of non- obsolete/ surplus/ non-moving items, necessary provision is made and
renewal. charged to revenue. The net realisable value of semi-finished special
Acquisition Cost i.e. cost associated with acquisition of licenses, and rights products, which have realisable value at finished stage only, is estimated
to explore including related professional fees, payment towards statutory for the purpose of comparison with cost.
forestry clearances, as and when incurred, are treated as addition to the Residue products and other scrap are valued at estimated net realisable
Mining Rights. value.
Other Intangible Assets The basis of determining cost is:
Software which is not an integral part of related hardware, is treated as Raw materials - Periodical weighted average cost
intangible asset and amortised over a period of five years or its licence
Minor raw materials - Moving weighted average cost
period, whichever is less.
Stores & Spares - Moving weighted average cost
Research and development
Materials in-transit - at cost
Development expenditure is capitalised only if it can be measured reliably
and the related asset and process are identifiable and controlled by the Finished/Semi-finished products - material cost plus appropriate share of
Group. Research and other development expenditure is recognised as labour, related overheads and duties.
revenue expenditure as and when incurred. 3.7 Government Grants
3.2.2 Subsequent Cost Government grants are recognised when there is reasonable assurance
Subsequent expenditure is capitalised only when it increases the future that the Company will comply with the conditions attaching to them and
economic benefits embodied in the specific asset to which it relates. All that the grants will be received.
other expenditure is recognised in the Statement of Profit and Loss. Government grants are recognised in Statement of Profit and Loss on a
3.3 Impairment of Non-Financial Assets systematic basis over the periods in which the Company recognises as
The Group reviews the carrying amount of its assets on each Balance expenses the related costs for which the grants are intended to compensate.
Sheet date for the purpose of ascertaining impairment indicators if any, by Where the Grant relates to an asset value, it is recognised as deferred
considering assets of entire one Plant as Cash Generating Unit (CGU). If income, and amortised over the expected useful life of the asset. Other
any such indication exists, the assets' recoverable amount is estimated, as grants are recognised in the statement of Profit & Loss concurrent to the
higher of the Net Selling Price and the Value in Use. An impairment loss is expenses to which such grants relate/ are intended to cover.
recognised whenever the carrying amount of an asset exceeds its Where the Company receives non-monetary grants, the asset and the grant
recoverable amount. are recorded gross at fair amounts and released to the income statement
Where an impairment loss subsequently reverses, the carrying amount of over the expected useful life and pattern of consumption of the benefit of
the asset (or cash-generating unit) is increased to the revised estimate of the underlying asset.
its recoverable amount, so that the increased carrying amount does not 3.8 Foreign Currency Transactions
exceed the carrying amount that would have been determined had no
Foreign currency transactions are translated into the functional currency of
impairment loss been recognised for the asset (or cash-generating unit) in
the Group using the exchange rates prevailing at the date of the transactions.
prior years. A reversal of an impairment loss is recognised immediately in
Foreign exchange gains and losses resulting from the settlement and re-
the Statement of Profit and Loss.
measurement of monetary items denominated in foreign currency are
3.4 Stripping Cost recognised in the Statement of Profit and Loss at period-end exchange
The stripping cost incurred during the production phase of a surface mine rates.
is recognised as an asset if such cost provides a benefit in terms of improved The Group opted for accounting the exchange differences arising on
access to ore in future periods and following criteria are met: reporting of long term foreign currency monetary items in line with
• It is probable that the future economic benefits (improved access to Companies (Accounting Standards) Amendment Rules 2009 relating to
an ore body) associated with the stripping activity will flow to the Accounting Standard-11 notified by Government of India on 31st March,
entity, 2009 (as amended on 29th December 2011), which will continue in
accordance with Ind-AS 101 for all pre-existing long term foreign currency
• The entity can identify the component of an ore body for which access
monetary items as at 31st March, 2016. Accordingly, exchange differences
has been improved, and
(including arising out of forward exchange contracts) relating to long term
• The costs relating to the improved access to that component can be monetary items, arising during the year, in so far as they relate to the
measured reliably. acquisition of fixed assets, are adjusted in the carrying amount of such
The expenditure, which cannot be specifically identified to have been assets.
incurred to access ore is charged to revenue, based on stripping ratio as Non-monetary items are not retranslated at period-end and are measured
per 5 year mining plan for mines, except collieries which is based on project at historical cost (translated using the exchange rates at the transaction
report. date), except for non-monetary items measured at fair value which are
3.5 Borrowing costs translated using the exchange rates at the date when fair value was
determined.
Borrowing costs directly attributable to the acquisition or construction of a
qualifying asset, which takes substantial period of time, are capitalised as 3.9 Employee Benefits
a part of the cost of that asset, during the period of time that is necessary Defined Contribution Plan
to complete and prepare the asset for its intended use.
A defined contribution plan is a plan under which the Group pays fixed
The Group considers a period of twelve months or more as a substantial contributions into a separate entity. Payments to defined contribution
period of time. retirement benefit plans are recognised as an expense when employees
Transaction costs in respect of long-term borrowings are amortised over have rendered service entitling them to the contributions. Contributions
the tenor of respective loans using effective interest method. Other borrowing towards Provident Funds are charged to the Statement of Profit and Loss
costs are recognised in the Statement of Profit & Loss in the period in of the period when the contributions to the Funds are due.
which these are incurred. Defined Benefit Plan
3.6 Inventories Defined benefit plans are the amount of the benefit that an employee will
Raw materials, Stores & Spares and Finished/Semi-finished products receive on completion of services by reference to length of service, last

109
 drawn salary or direct costs related to such benefits. The legal obligation at the lower of the fair value and present value of the minimum lease
for any benefits remains with the Group. payments at the inception of the lease term and disclosed as leased assets.
The liability recognised for Defined Benefit Plans is the present value of the Lease payments under such leases are apportioned between the finance
Defined Benefit Obligation (DBO) at the reporting date less the fair value of charges and reduction of the lease liability based on the implicit rate of
plan assets, together with adjustments for unrecognised actuarial gains or return. Finance charges are charged directly against income. Lease
losses and past service costs. Management estimates the present value of management fees, legal charges and other initial direct costs are capitalised.
the DBO annually through valuations by an independent actuary using the If there is no reasonable certainty that the Group will obtain the ownership
projected unit credit method. Actuarial gains and losses are included in by the end of lease term, capitalised leased assets are depreciated over
Statement of Profit and Lossor Other Comprehensive Income of the year. the shorter of the estimated useful life of the asset or the lease term.
Remeasurement, comprising of actuarial gains and losses, the effect of Operating leases
the changes to the asset ceiling (if applicable) and the return on plan assets Assets acquired on leases where a significant portion of risk and rewards
(excluding interest), is reflected in the balance sheet with a charge or credit of ownership are retained by the lessor are classified as operating leases.
recognised in other comprehensive income in the period in which they Lease rental are charged to statement of profit and loss on straight-line
occur. Remeasurement recognised in other comprehensive income is basis except where scheduled increase in rent compensate the lessor for
reflected immediately in retained earnings and will not be reclassified to expected inflationary costs.
the statement of profit and loss.
Group as a Lessor
Short Term Employee Benefits
Finance leases
Short term employee benefits comprise of employee costs such as salaries,
bonus, ex-gratia, annual leave and sick leave which are accrued in the year Leases which effectively transfer to the lessee substantially all the risks
in which the associated services are rendered by employees of the Group. and benefits incidental to ownership of the leased item are classified and
accounted for as finance lease. Lease rental receipts are apportioned
Liabilities recognised in respect of short-term employee benefits are between the finance income and capital repayment based on the implicit
measured at the undiscounted amount of the benefits expected to be paid rate of return. Contingent rents are recognised as revenue in the period in
in exchange for the related services. which they are earned.
Expenditure incurred on Voluntary Retirement Scheme is charged to the Operating leases
Statement of Profit and Loss immediately.
Leases in which the Group does not transfer substantially all the risks and
3.10 Revenue Recognition rewards of ownership of an asset are classified as operating leases. The
Revenue is measured at the fair value of consideration received or receivable. respective leased assets are included in the balance sheet based on their
Sale of goods nature. Rental income is recognized on straight-line basis over the lease
term except where scheduled increase in rent compensates the Group with
Sales include excise duty (upto 30th June, 2017) and are net of Goods and expected inflationary costs.
Services Tax (GST) (from 1st July, 2017), rebates and price concessions.
Sales are recognised at the time of dispatch of materials to the buyers 3.14 Investment Properties
including the cases where delivery documents are endorsed in favour of Investment properties are properties held to earn rentals and/or for capital
the buyers. Where the contract prices are not finalised with government appreciation. Investment properties are measured initially at cost including
agencies, sales are accounted for on provisional basis. transaction costs. Subsequent to initial recognition, investment properties
Marine export sales are recognised on: are stated at cost less accumulated depreciation and impairment losses.
Any gain or loss on disposal of investment property is determined as the
i) the issue of bill of lading, or difference between net disposal proceeds and the carrying amount of the
ii) negotiation of export bills upon expiry of laycan period, in cases property and is recognised in the Statement of Profit and Loss.
where realisation of material value without shipment is provided in 3.15 Non-current assets held for sale
the letters of credit of respective contracts, whichever is earlier.
Group classifies a non-current asset as held for sale if its carrying amount
Export incentives under various schemes are recognised as income on will be recovered principally through a sale transaction. This condition is
certainty of realisation. regarded as met only when the asset is available for immediate sale in its
The iron ore fines not readily useable/saleable are included in inventory present condition and its sale is highly probable.
and revenue is recognised on disposal. Non-current assets including discontinued operations, classified as held
Interest and dividend income for sale are measured at the lower of the carrying amounts and fair value
less costs to sell and presented separately in the financial statements. Once
Interest income is reported on an accrual basis using the effective interest
classified as held for sale, the assets are not subject to depreciation or
method. Dividends are recognised at the time the right to receive is
amortisation.
established.
Any profit or loss arising from the sale or re-measurement of discontinued
3.11 Adjustment pertaining to Earlier Years
operations is presented as part of a single line item in statement of profit
Income/Expenditure relating to a prior period,which do not exceed 0.5% of and loss.
Turnover in each case, are treated as income/expenditure of current year.
3.16 Mine Closure
3.12 Claims for Liquidated Damages and Price Escalation
Mine Closure Provision include the dismantling and demolition of
Claims for liquidated damages are accounted for as and when these are infrastructure, the removal of residual materials and the remediation of
considered recoverable by the Parent Company. These are adjusted to the disturbed areas for mines. This provision is based on all regulatory
capital cost or recognised in Statement of Profit and Loss, as the case may requirements and related estimated cost based on best available information.
be on final settlement of Liquidated damages. Mine closure costs are provided for in the accounting period when the
Suppliers' and Contractors' claims for price escalation are accounted for to obligation arises based on the net present value of the estimated future
the extent such claims are accepted by the Parent Company. costs of restoration to be incurred during the life of the operation and post
closure.
3.13 Leases
The initial close-down and restoration provision is capitalised within
Group as a Lessee "Property, Plant and Equipment". Subsequent movements in the close-down
Finance leases and restoration provisions for on-going operations, including those resulting
Finance leases, which effectively transfer to the lessee substantially all the from new disturbance related to expansions or other activities qualifying
risks and benefits incidental to ownership of the leased item, are capitalised for capitalisation, updated cost estimates, changes to the estimated lives

110
 of operations, changes to the timing of closure activities and revisions to segments, management generally considers the Group's separately
discount rates are also capitalised within "Property, Plant and Equipment". identifiable manufacturing operations representing its main operations.
These costs are depreciated over the lives of the assets to which they Each of these operating segments is managed separately as each requires
relate. Any changes in closure provisions relating to closed operations are different technologies, raw materials and other resources. All inter-segment
charged /credited to the Statement of Profit and Loss.The amortisation or transfers are carried out at arm's length prices based on prices charged to
"unwinding" of the discount applied in establishing the provisions is charged unrelated customers in standalone sales of identical goods or services.
as Finance Cost.
For management purposes, the Group uses the same measurement policies
3.17 Provisions, Contingent Liabilities and Contingent Assets as those used in its consolidated financial statements.
Provisions and Contingent Liabilities
In addition, corporate assets which are not directly attributable to the
A Provision is recognised when the Group has present obligation as a result business activities of any operating segment are not allocated to a segment.
of a past event and it is probable that an outflow of resources will be required This primarily applies to the Group's administrative head office and mining
to settle the obligation in respect of which a reliable estimate can be made. operations.
Provisions are discounted to their present value, where the time value of
There have been no changes from prior periods in the measurement
money is material.
methods used to determine repor ted segment profit or loss. No
When some or all of the economic benefits required to settle a provision asymmetrical allocations have been applied between segments.
are expected to be recovered from a third party, the receivable is recognised
3.21 Equity and Reserves
as a separate asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably. Share Capital represents the nominal value of shares that have been issued.
Securities premium includes any premium received on issue of Share
Contingent liability is a possible obligation arising from past events and the
Capital.
existence of which will be confirmed only by the occurrence or non-
occurrence of one or more uncertain future events not wholly within the Other components of equity include the following:
control of the Group or a present obligation that arises from past events • Re-measurement of defined benefit liability comprises the actuarial
but is not recognised because it is not possible that an outflow of resources gain or loss from changes in demographic and financial assumptions
embodying economic benefit will be required to settle the obligations or and return on plan assets.
reliable estimate of the amount of the obligations cannot be made. The
Group discloses the existence of contingent liabilities in Other Notes to • Bond Redemption Reserve.
Financial Statements. • Other transactions recorded directly in Other Comprehensive Income.
In cases where the possible outflow of economic resources as a result of • Retained earnings include all current and prior period retained profits
present obligation is considered improbable or remote, no Provision is
3.22 Financial Instruments
recognised or disclosure is made.
Recognition, initial measurement and de-recognition
Contingent Assets
Financial assets and financial liabilities are recognised and are measured
Contingent assets usually arise from unplanned or other unexpected events
initially at fair value adjusted by transactions costs, except for those financial
that give rise to the possibility of an inflow of economic benefits. Contingent
assets which are classified at Fair Value through Profit & Loss (FVTPL) at
Assets are not recognised though are disclosed, where an inflow of
inception.
economic benefits is probable.
Financial assets are derecognised when the contractual rights to the cash
3.18 Income Taxes
flows from the financial asset expire, or when the financial asset and all
Tax expense recognised in statement of profit and loss comprises the sum substantial risks and rewards are transferred. A financial liability is
of deferred tax and current tax not recognised in Other Comprehensive derecognized when it is extinguished, discharged, cancelled or expires.
Income (OCI) or directly in equity.
Classification and subsequent measurement of financial assets
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income-tax Act. Current income For the purpose of subsequent measurement, financial assets are classified
tax relating to items recognised outside statement of profit and loss is into the following categories upon initial recognition:
recognised either in OCI or in equity. • amortised cost
Deferred income taxes are calculated using the liability method. Deferred • financial assets at fair value through profit or loss (FVTPL)
tax liabilities are generally recognised in full for all taxable temporary
• financial assets at fair value through other comprehensive income
differences. Deferred tax assets are recognised to the extent that it is
(FVOCI)
probable that the underlying tax loss, unused tax credits (MAT Credit
entitlement) or deductible temporary difference will be utilised against future All financial assets except for those at FVTPL are subject to review for
taxable income. Unrecognised deferred tax assets are re-assessed at each impairment at least at each reporting date.
reporting date and are recognised to the extent that it has become probable Amortised cost
that future taxable profits will allow the deferred tax asset to be recovered.
A financial asset is measured at amortised cost using effective interest
Deferred tax assets and liabilities are measured at the tax rates that are rates if both of the following conditions are met:
expected to apply in the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or a) the financial asset is held within a business model whose objective
substantively enacted at the reporting date. Deferred tax relating to items is to hold financial assets in order to collect contractual cash flows;
recognised outside statement of profit and loss is recognised either in OCI and
or in equity. b) the contractual terms of the financial asset give rise on specified
3.19 Cash and Cash Equivalents dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
Cash and cash equivalents comprise cash on hand and demand deposits,
together with other short-term highly liquid investments (original maturity The Group's cash and cash equivalents, trade and most other receivables
less than 3 months) that are readily convertible into known amount of cash fall into this category of financial instruments.
and are subject to an insignificant risk of changes in value. Financial assets at FVTPL
3.20 Segment reporting Financial assets at FVTPL include financial assets that are either do not
The Group has 8 operating/reportable segments: the five integrated steel meet the criteria for amortised cost classification or are equity instruments
plants and three alloy steel plants, being separate manufacturing units, held for trading or that meet certain conditions and are designated at FVTPL
have been considered reportable segments. In identifying these operating upon initial recognition. All derivative financial instruments also fall into

111
 this category. Assets in this category are measured at fair value with gains Close-down and restoration costs are normal consequence of mining or
or losses recognized in profit or loss. The fair values of financial assets in production, and majority of close-down and restoration expenditure are
this category are determined by reference to active market transactions or incurred in the years following the closure of mine, although the ultimate
using a valuation technique where no active market exists. cost to be incurred is uncertain, the Group estimate their costs using current
Financial assets at FVOCI restoration techniques.

FVOCI financial assets are either debt instruments that are managed under 3.23.3 Recognition of Deferred Tax Assets
hold to collect and sell business model or are non-trading equity instruments The extent to which deferred tax assets can be recognized is based on an
that are designated to this category. assessment of the probability of the Group's future taxable income against
FVOCI financial assets are measured at fair value. Gains and losses are which the deferred tax assets can be utilized. In addition, significant
recognized in other comprehensive income, except for interest and dividend judgement is required in assessing the impact of any legal or economic
income, impairment losses and foreign exchange differences on monetary limits.
assets, which are recognized in statement of profit or loss. 3.23.4 Inventories
Classification and subsequent measurement of financial liabilities The Group estimates the cost of inventories taking into account the most
Financial liabilities are measured subsequently at amortized cost using the reliable evidence,such as cost of materials and overheads considered
effective interest method, except for financial liabilities held for trading or attributable to the production of such inventories including actual cost of
designated at FVTPL, that are carried subsequently at fair value with gains production, etc. Management also estimates the net realisable values of
or losses recognized in profit or loss. All derivative financial instruments inventories, taking into account the most reliable evidence available at each
are accounted for at FVTPL. reporting date. The future realisation of these inventories may be affected
by future technology or other market-driven changes that may reduce future
Embedded Derivatives selling prices.
Derivatives embedded in non-derivative host contracts are treated as 3.23.5 Defined Benefit Obligation (DBO)
separate derivatives when they meet the definition of a derivative, their
risks and characteristics are not closely related to those of the host contracts Employee benefit obligations are measured on the basis of actuarial
and the contracts are not measured at FVTPL. assumptions which include mortality and withdrawal rates as well as
assumptions concerning future developments in discount rates, medical
Impairment of Financial Assets cost trends, anticipation of future salary increases and the inflation rate.
In accordance with IndAS 109, the Group applies Expected Credit Loss The Group considers that the assumptions used to measure its obligations
(ECL) model for measurement and recognition of impairment loss for are appropriate. However, any changes in these assumptions may have a
financial assets. material impact on the resulting calculations.
ECL is the difference between all contractual cash flows that are due to the 3.23.6 Fair Value Measurements
Group in accordance with the contract and all the cash flows that the Group The Group applies valuation techniques to determine the fair value of financial
expects to receive. instruments (where active market quotes are not available) and non-financial
Trade Receivables assets. This involves developing estimates and assumptions consistent
with the market par ticipants to price the instrument. The Group's
The Group applies approach as specified in Indian Accounting Standards
assumptions are based on observable data as far as possible, otherwise
(Ind AS) 109 Financial Instruments, which requires expected lifetime losses
on the best information available. Estimated fair values may vary from the
to be recognised from initial recognition of receivables.
actual prices that would be achieved in an arm's length transaction at the
Other Financial Assets reporting date.
For recognition of impairment loss on other financial assets and risk 3.23.7 Provisions and Contingencies
exposure, the Group determines whether there has been a significant
The assessments undertaken in recognising provisions and contingencies
increase in the credit risk since initial recognition.
have been made in accordance with Indian Accounting Standards (Ind AS)
3.23 Significant Judgements, Assumptions, and Estimations in applying 37, 'Provisions, Contingent Liabilities and Contingent Assets'. The evaluation
Accounting Policies of the likelihood of the contingent events is applied best judgement by
3.23.1 Classification of Leases management regarding the probability of exposure to potential loss.
The Group enters into leasing arrangements for various assets. The 3.23.8 Mines Closure and Restoration Obligations
classification of the leasing arrangement as a finance lease or operating Environmental liabilities and Asset Retirement Obligation (ARO): Estimation
lease is based on an assessment of several factors, including, but not of environmental liabilities and ARO require interpretation of scientific and
limited to, transfer of ownership of leased asset at end of lease term, lessee's legal data, in addition to assumptions about probability and future costs.
option to purchase and estimated certainty of exercise of such option,
3.23.9 Useful lives of depreciable/ amortisable assets (tangible and intangible)
proportion of lease term to the asset's economic life, proportion of present
value of minimum lease payments to fair value of leased asset and extent Management reviews its estimate of the useful lives of depreciable/
of specialized nature of the leased asset. amortisable assets at each reporting date, based on the expected utility of
the assets. Uncertainties in these estimates relate to actual normal wear
3.23.2 Close-down and Restoration Obligations
and tear that may change the utility of plant and equipment.

112
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
4: PROPERTY, PLANT AND EQUIPMENT
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions/ Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2017 2018 2017 Year 2018 2018 2017

A. Plant, Mines & Others

Land
-Freehold land 277.49 19.26 - 296.75 0.87 - - 0.87 295.88 276.62
-Leasehold land 979.78 297.07 0.89 1275.96 216.68 68.11 0.25 284.54 991.42 763.10
Buildings and related equipments 5168.70 131.60 0.37 5299.93 1642.33 151.34 0.10 1793.57 3506.36 3526.38
Plant and machinery
-Steel plant 66229.31 10496.73 524.78 76201.26 26347.98 2345.88 347.34 28346.52 47854.74 39881.28
-Others - owned 3042.12 113.48 82.97 3072.63 1961.71 121.85 71.85 2011.71 1060.92 1081.56
-Others - Leasehold (Refer note (ii)) 1557.23 59.63 - 1616.86 657.37 106.03 - 763.40 853.46 899.86
Furniture and fixtures 125.33 4.58 (0.83) 130.74 91.93 5.83 0.19 97.57 33.17 33.40
Vehicles 1327.86 36.55 8.89 1355.52 756.27 74.24 8.39 822.12 533.40 571.59
Office equipments 61.04 1.54 0.58 62.00 47.95 2.84 0.50 50.29 11.71 12.60
Miscellaneous articles 318.91 30.10 1.07 347.94 209.88 13.95 0.85 222.98 124.96 108.91
Roads, Bridges & Culverts 343.24 58.61 0.55 401.30 229.26 26.68 (0.05) 255.99 145.31 113.98
Water Supply & Sewerage 556.88 73.97 1.10 629.75 324.74 20.19 0.87 344.06 285.69 232.14
EDP Equipments 415.03 11.94 6.72 420.25 356.19 14.64 5.95 364.88 55.37 59.78

113
Railway Lines and Sidings 709.38 100.44 0.10 809.72 233.86 18.24 0.11 251.99 557.73 475.52
Sub-total 'A' 81112.30 11435.50 627.19 91920.61 33077.02 2969.82 436.35 35610.49 56310.12 48036.72
Figures for the previous year 74380.92 7027.90 291.32 81117.50 30717.35 2588.13 224.70 33080.78 48036.72
B. SOCIAL FACILITIES
Land
-Freehold land 10.88 0.01 - 10.89 - - - - 10.89 10.88
-Leasehold land 9.39 0.61 - 10.00 5.95 0.13 - 6.08 3.92 3.44
Buildings and related equipments 684.04 61.75 0.44 745.35 317.07 17.96 0.37 334.66 410.69 366.97
Plant and machinery - others 149.46 28.34 1.69 176.11 99.50 6.62 1.23 104.89 71.22 49.96
Furniture and fixtures 26.88 0.47 0.60 26.75 19.51 1.26 0.30 20.47 6.28 7.37
Vehicles 11.23 0.20 0.16 11.27 9.80 0.34 0.11 10.03 1.24 1.43
Office equipments 4.53 0.10 0.12 4.51 3.72 0.28 0.11 3.89 0.62 0.79
Miscellaneous articles 226.80 6.46 2.03 231.23 135.31 11.63 1.76 145.18 86.05 91.51
Roads, Bridges & Culverts 130.90 5.08 0.02 135.96 85.11 13.50 0.01 98.60 37.36 45.79
Water Supply & Sewerage 226.54 74.31 - 300.85 123.95 7.32 - 131.27 169.58 102.59
EDP equipments 12.02 0.17 0.81 11.38 9.91 0.36 0.46 9.81 1.57 2.11
Sub-total 'B' 1492.67 177.50 5.87 1664.30 809.83 59.40 4.35 864.88 799.42 682.84
Figures for the previous year 1438.17 62.59 8.09 1492.67 761.39 54.60 6.16 809.83 682.84
C. Property, plant and equipment retired from active use
Assets retired from active use 58.29 35.27 33.53 60.03 - - - - 60.03 57.28
Figures for the previous year 55.40 9.02 7.14 57.28 - - - - 57.28
Total ('A'+'B'+C') 82663.26 11648.27 666.59 93644.94 33886.85 3029.22 440.70 36475.37 57169.57 48776.83
Figures for the previous year 75874.49 7099.51 306.55 82667.45 31478.74 2642.73 230.86 33890.61 48776.83
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
4: PROPERTY, PLANT AND EQUIPMENT (CONTD.)
(` crore)

As at 31st At at 31st
March, 2018 March, 2017

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

(a) Charged to Profit & Loss Account 3065.97 2681.62

(b) Charged to expenditure during construction 4.15 5.12

3070.12 2686.74

(i) Contractual obligations

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

(ii) Land:

(a) Includes 68,019.40 acres (67,718.76 acres as on 31st March, 2017) owned / possessed / taken on lease by the Company, in respect of which title/lease deeds are pending
for registration.

(b) Includes 34,576.05 acres (34,061.08 acres as on 31st March, 2017) in respect of which title is under dispute.

(c) 9,367.80 acres (9007.46 acres as on 31st March, 2017) transferred/agreed to be transferred or made available for settlement to various Joint Ventures / Central / State /
Semi-Government authorities, in respect of which conveyance deeds remain to be executed/registered.

(d) 6,187.95 acres (6384.17 acres as on 31st March, 2017) given on lease to various agencies/employees/ex-employees.

(e) Includes 4070.09 acres (4,436.70 acres as on 31st March, 2017) under unauthorised occupation.

(f) 1,762.92 acres (1,762.92 acres as on 31st March, 2017) of Land which is not in the actual possession, shown as deemed possession.

(g) ` 63.13 crore is lying under deposits (in respect of land already acquired) with the District & Sessions Judge, Bokaro during the year 2007 towards compensation payable to
land losers.

(h) Vide Notification of Acquisition in the Gazette of India (Extraordinary) bearing No S.O. 1309(E) dated 08.06.2012 and No. S.O. 2484E dated 13.10.2012, National Highway
Authority of India Ltd.(NHAI) has acquired 12.19 acres.

(i) Includes 21.13 acres freehold land notified for acquisition by Government of Jharkhand vide Gazette notification no. 42 & 43 dated 26th August, 2009, determining compensation
of ` 13.91 crore only for 15.62 acres. Management proposes to contest the same with appropriate authorities. Pending further action in the matter, no effect of above has been
given in the accounts.

(iii) Other Assets:

(a) Buildings include net block of ` 21.23 crore as on 31st March, 2018 (` 21.18 crore as on 31st March, 2017) for which conveyance deed is yet to be registered in the name of
the Company.

(b) Includes 7107 (7038 as on 31st March, 2017), residential quarters/houses under unauthorised occupation.

114
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

As at 31st March, 2018 As at 31st March, 2017

5: CAPITAL WORK IN PROGRESS

Steel Plants & Units 18168.23 22922.89
Township 91.56 107.49
Ore Mines and Quarries 314.32 399.14
18574.11 23429.52
Less: Provisions 215.26 18358.85 199.32 23230.20
Construction stores and spares 24.65 37.49
Less: Provision for non-moving items 3.18 21.47 3.39 34.10
Expenditure during construction pending
allocation (Note 5.1) 15.11 11.09
18395.43 23275.39

5.1: EXPENDITURE DURING CONSTRUCTION PENDING ALLOCATION

Opening balance (a) 11.09 7.91

Expenditure incurred during the year

Employees' Remuneration & Benefits

Salaries & Wages 90.30 121.40

Company's contribution to provident fund 3.86 10.86

Travel concession 2.96 3.08

Welfare expenses 0.07 0.11

Gratuity 3.53 100.72 0.71 136.16

Other expenses

Technical consultants' fees & know-how 4.47 8.56

Power & Fuel 76.29 134.97

Other expenses 6.19 6.68

Interest & Finance charges 668.52 581.90

Depreciation 4.15 759.62 5.12 737.23

860.34 873.39

Less: Recoveries

Interest Earned 0.27 0.47

Liquidated damages 0.22 2.49

Hire charges 0.45 0.35

Sundries 8.86 9.80 17.99 21.30

Net expenditure during the year (b) 850.54 852.09

Total (a)+(b) 861.63 860.00

Less : Amount allocated to Property, plant

and equitpment / Capital Work-in-progress 846.52 848.91

Balance carried forward 15.11 11.09

115
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
6: INVESTMENT PROPERTIES
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions/ Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2017 2018 2017 Year 2018 2018 2017

A. BUILDINGS
Buildings 1.45 - - 1.45 0.59 0.03 - 0.62 0.83 0.86
Sub-total 'A' 1.45 - - 1.45 0.59 0.03 - 0.62 0.83 0.86
Figures for the previous year 1.45 - - 1.45 0.57 0.02 - 0.59 0.86

(i) Contractual obligations

There are no contractual obligation to purchase, construct or develop investment property or for its repair, maintenance or enhancement.
(ii) Amount recognised in profit and loss for investment properties
(` crore)
As at 31st At at 31st
March, 2018 March, 2017
Rental income 1.52 1.30
Direct operating expenses that generated rental income*
Direct operating expenses that did not generate rental income* - -

116
Profit from leasing of investment properties before depreciation 1.52 1.30
Depreciation 0.03 0.02
Profit from leasing of investment properties 1.49 1.28
*Direct expenses in relation to investment properties cannot be separately identified and are expected to be insignificant.
(iii) Leasing arrangements
Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Minimum lease payment receivable under non-cancellable leases
of investment property are as follows:
(` crore)
As at 31st At at 31st
March, 2018 March, 2017
Within one year 0.04 0.02
Later than one year but not later than 5 years 0.07 0.02
Later than 5 years 0.01 0.07
0.12 0.11
(iv) Fair value
Fair value of Investment properties as on 31st March, 2018 is `20.53 crore (`21.66 crore as on 31st March, 2017)
(v) Estimation of fair value
The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Group considers information from a variety
of sources including:
a) Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences.
b) Discounted cash flow projections based on reliable estimates of future cash flows.
c) Circle rate of the property as provided by State Government.
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
7: INTANGIBLE ASSETS
(` crore)

Description GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION NET BLOCK

As at Additions/ Disposals/ As at Up to For Disposals/ Up to As at As at
31st March, Adjustments Adjustments 31st March, 31st March, the Adjustments 31st March, 31st March, 31st March,
2017 2018 2017 Year 2018 2018 2017

A. PLANTS, MINES & OTHERS

Computer Software* 101.20 2.15 0.07 103.28 97.19 1.58 -0.04 98.81 4.47 4.01
Mining Rights 1822.32 7.47 37.47 1792.32 303.83 39.18 0.84 342.17 1450.15 1518.50
Sub-total 'A' 1923.52 9.62 37.54 1895.60 401.02 40.76 0.80 440.98 1454.62 1522.51
Figures for the previous year 1903.76 20.35 0.58 1923.53 357.68 43.93 0.59 401.02 1522.51
B. SOCIAL FACILITIES
Computer Software* 1.10 - - 1.10 0.57 0.12 - 0.69 0.41 0.07
Sub-total 'B' 1.10 - - 1.10 0.57 0.12 - 0.69 0.41 0.07
Figures for the previous year 0.62 0.01 - 0.63 0.50 0.06 - 0.56 0.07
Total ('A'+'B') 1924.62 9.62 37.54 1896.70 401.59 40.88 0.80 441.67 1455.03 1522.58
Figures for the previous year 1904.38 20.36 0.58 1924.16 358.18 43.99 0.59 401.58 1522.58

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

117
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
8: INVESTMENTS - NON CURRENT
No of Shares Amount (` in crore)
As at 31st As at 31st As at 31st As at 31st
March, 2018 March, 2017 March, 2018 March, 2017

Investments carried at cost

In Joint ventures (unquoted)-Defunct entities
North Bengal Dolomite Ltd (Face value- `100/share) 97,900 97,900 0.98 0.98
Romelt SAIL ( India ) Limited 63,000 63,000 0.06 0.06
Total (A) 1.04 1.04
Investments carried at fair value through other comprehensive income
Quoted equity
HDFC Limited ( Face value - ` 2/share) 60,000 60,000 10.95 9.00
HDFC Bank Limited ( Face value - ` 2/share) 2,500 2,500 0.47 0.36
ICICI Bank Limited ( Face value - ` 2/share) 157,300 143,000 4.38 3.94
15.80 13.30
Unquoted equity
TRL Krozaki Refractories Limited 2,203,150 2,203,150 34.05 29.93
Indian Potash Limited 360,000 360,000 17.57 13.43
Haridaspur Paradeep Railway Co Ltd 5,000,000 5,000,000 5.00 5.00
Cement & Allied Products (Bihar) Limited 2 2 - -
Chemical & Fertilizer Corporation (Bihar) Limited 1 1 - -
Bhilai Power Supply Company Limited 5 5 - -
MSTC Limited 320,000 160,000 4.70 6.66
IISCO Ujjain Pipe & Foundary Company Limited 3,000,000 3,000,000 3.00 3.00
(under liquidation)#
UEC SAIL Information Technology Limited* 180,000 180,000 0.18 0.18
Bihar State Finance Corporation (Face value `100/share) 500 500 0.01 0.01
64.51 58.21
In Co-operative society
Bokaro Steel Employees' Co.-operative Credit Society 116,500 116,500 0.12 0.12
Bokaro Steel City Central Consumers' Co-operative Society 250 250 - -
NMDC Meghahatuburu Employees' Co-operative Society (Face value ` 100/share) 25 25 - -
DSP Employees'Co-operative society limited (Face value ` 100/share) 1,377 1,377 0.01 0.01
Bolani Ores Employees' Consumer Co-operative Society Limited (Face value ` 25/share) 200 200 - -
IISCO Employees Primary Co-operative Society (Face value ` 20/share) 23,000 23,000 0.05 0.05
0.18 0.18
Total (B) 80.49 71.69
Grand total (A+B) 81.53 72.73
Provision for impairment in the value of investments 7.68 7.68
Net investment 73.85 65.05
Aggregate amount of quoted investments 15.80 13.30
(market value thereof)
Aggregate amount of unquoted investments 65.73 59.43
Aggregate amount of impairment in value of investments 7.68 7.68
73.85 65.05
All equity shares have face value ` 10 each unless otherwise stated.
*Entity is under liquidation, therefore, not considered as joint venture despite of joint agreement between shareholders.
#Entity is under liquidation, therefore, not in the control of the parent Company.

118
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

9: TRADE RECEIVABLES - NON CURRENT

(Unsecured, considered good unless otherwise stated)

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

10: LOANS - NON CURRENT

(Unsecured, considered good unless otherwise stated)*

Security deposits 101.81 110.65
Loan to employees 124.53 157.40
Loan to others 225.14 185.49
451.48 453.54
Less : Provision for doubtful loans 0.02 0.02
451.46 453.52
* Receivables due from directors of the parent Company is nil (previous year nil)

11: OTHER FINANCIAL ASSETS - NON CURRENT

Derivative assets 76.73 46.59

Advance for purchase of shares - 99.53
Claims recoverable 7.89 -
Receivables other than trade 76.95 103.46
Receivables from employees 0.09 0.12
Loans and advances to related parties 10.53 10.53
Less: Provision for doubtful related party advances 2.53 8.00 2.53 8.00
Fixed deposits with maturity period more than 12 months 0.19 -
169.85 257.70
Less, Provision for doubtful assets 7.21 0.02
162.64 257.68

12 : DEFERRED TAX ASSETS (NET)

Tax effect of items constituting deferred tax liabilities

Diff between book and tax depreciation 8996.19 7451.63
Amortisation of financial assets/liabilities 28.39 31.39
Fair value adjustment through OCI 10.46 9035.04 8.88 7650.76
Tax effect of items constituting deferred tax assets
Retirement benefits 8.73 108.77
Finance lease obligations 85.64 75.83
Derivative adjustments 54.81 84.35
Unpaid taxes and duties to be allowed on payment 1156.38 1122.61
Losses available for offsetting against future taxable income 9985.34 8563.67
Others 854.29 12145.19 493.16 10448.51
Tax credit (minimum alternative tax) 1051.83 1051.00
Deferred tax (assets) /liabilities (net) 4161.98 3848.75

119
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
Deferred taxes arising from temporary differences and unused tax losses for year ended 31st March, 2018 are summarized as follows:
(` crore)

As at Recognized Recognized As at
April 1, 2017 in profit or in other March 31,
loss comprehensive 2018
income

Tax effect of items constituting deferred tax liabilities

Difference between book and tax depreciation 7451.63 1544.56 - 8996.19
Amortisation of financial assets/liabilities 31.39 (3.00) - 28.39
Fair value adjustment through OCI 8.88 - 1.58 10.46
7491.90 1541.56 1.58 9035.04
Tax effect of items constituting deferred tax assets
Retirement benefits 108.77 (3.82) (96.22) 8.73
Finance lease obligations 75.83 9.81 - 85.64
Derivative adjustments 84.35 (29.54) - 54.81
Unpaid taxes and duties to be allowed on payment 1122.61 33.77 - 1156.38
Losses available for offsetting against future taxable income 8563.67 1,421.67 - 9985.34
Tax credit (minimum alternative tax) 1051.00 0.83 - 1051.83
Others 493.16 361.13 - 854.29
11499.39 1793.85 (96.22) 13197.02
Deferred tax (assets) /liabilities (net) (3,848.75) (252.29) 97.80 (4,161.98)

The Group is having accumulated business losses (including Investment Allowance) of `28,575.26 crore (Previous year-`24,744.77 crore) [including accumulated unabsorbed depreciation
of `18,823.78 crore (Previous Year - `15,057.93 crore)] and MAT credit of `1,051.83 crore as on 31 March, 2018 as per the provisions of the Income Tax Act, 1961. The unabsorbed
business losses amounting to `9,751.48 crore (Previous Year - `9,686.84 crore) are available for offset for maximum period of eight years from the incurrence of loss and unused tax
(MAT) credit will be available for offset within maximum period of fifteen years.
In view of the various measures being implemented by the Government for upliftment of 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 Group is certain that it will be able to improve its physical and financial performance in future. Consequently, the Group
will be able to earn sufficient future taxable profits to adjust the accumulated business losses/unabsorbed depreciation and unused MAT credit.
Accordingly, deferred tax asset of `3,407.55 crores on acccumulated business losses (inlcuding `55.13 crores during the year ended 31st March, 2018) and MAT credit of `1,051.83
crores, has been recognised as on 31st March, 2018.

(` crore)
st
As at 31 As at 31st
March, 2018 March, 2017

13: CURRENT TAX ASSETS / LIABILITIES (NET)

Current tax assets

Advance income tax (net of provision) 190.39 235.81

190.39 235.81

14: OTHER ASSETS - NON CURRENT

Advances to contractors & suppliers 341.37 280.46

Advances others 4.18 4.18
Deposit with Government authorities 646.94 641.95
Prepaid expenses 25.43 34.12
Capital advances 133.76 192.51
Less: Provision for doubtful capital advances 11.19 122.57 1.01 191.50
1140.49 1152.21
Less: Provision for doubtful other assets 80.39 72.09
1060.10 1080.12

120
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

15: INVENTORIES*

Stores & spares

Production 2160.06 1848.85
Fuel Stores 85.25 91.72
Others 24.54 27.36
2269.85 1967.93
Add: In-transit 155.02 114.48
2424.87 2082.41
Less: Provision for non moving/obsolete items 235.45 2189.42 212.36 1870.05
Raw Material
Raw material 4605.78 2590.00
Add: In-transit 2592.85 1471.24
7198.63 4061.24
Less: Provision for unusable materials 17.64 7180.99 15.80 4045.44
Finished / Semi-finished products
Finished goods 4440.25 5829.59
Work in progress 3213.64 7653.89 3991.01 9820.60
17024.30 15736.09
*Valued as per accounting policy No. 3.6

16: TRADE RECEIVABLES - CURRENT

(Unsecured, considered good unless otherwise stated)

Unsecured*
Considered good 3870.99 2934.69
Considered doubtful 196.70 181.89
4067.69 3116.58
Provision for doubtful receivables 196.70 181.89
3870.99 2934.69
* Receivables due from directors and officers of the parent Company is nil (previous year nil)

17 (I): CASH AND CASH EQUEVALENTS

Cash and stamps on hand 0.05 0.07

Cheques in hand 77.60 109.92
Balance with Banks
Current accounts 9.43 14.56
Term deposits with original maturity upto 3 months 6.92 16.09
Term deposits as per court orders with maturity upto 3 months - 16.35 - 30.65
94.00 140.64

17 (II): OTHER BANK BALANCES

Earmarked bank balances 168.30 159.31

Unpaid dividend accounts 6.21 8.53
Fixed deposits with maturity for more than 3 months but less than 12 months 77.04 70.35
251.55 238.19

121
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

18: LOANS - CURRENT

(Unsecured, considered good unless otherwise stated)*

Security deposits 9.23 21.33

Loan to employees 60.92 58.57

Loan to related parties 7.00 7.00

Loan to others 1.73 1.33

78.88 88.23

Less: Provision for doubtful loans 14.96 15.50

63.92 72.73

* Receivables due from directors of the parent Company is nil (previous year nil)

19: OTHER FINANCIAL ASSETS - CURRENT

Derivative assets 47.66 180.95

Claims recoverable 716.09 773.29
Receivables other than trade 311.32 245.38
Receivables from employees 7.20 6.88
Bills receivable 1787.27 1072.99
Advances to related parties 23.66 23.66
Less: Provision for doubtful related parties advances 13.42 10.24 1.39 22.27
2879.78 2301.76
Less Provision for doubtful assets 92.14 33.58
2787.64 2268.18

20: OTHER ASSETS - CURRENT

Gold coins in hand 0.23 0.23

Advances to contractors & suppliers 259.84 277.95
Advance others 851.03 1110.87 828.89 1106.84
Deposit with Government authorities 2512.07 2519.05
Deposits - GST 33.80 -
GST receivable 1813.70 -
Prepaid expenses 24.42 36.63
Claims receivable 184.46 725.54
Export incentive receivables 45.68 41.26
5725.23 4429.55
Less: Provision for doubtful other assets 85.45 143.77
5639.78 4285.78

21: ASSETS CLASSIFIED AS HELD FOR SALE

Assets classified as held for sale 32.50 11.94

32.50 11.94

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

122
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
22: EQUITY SHARE CAPITAL
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

Authorised capital

Equity shares of ` 10 each

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

Issued and subscribed capital & fully paid-up

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

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

Particulars As at 31st As at 31st

March, 2018 March, 2017

Numbers Amount Numbers Amount

(` in crore) (` in crore)

Equity shares with voting rights

Balance at the beginning of the year 4130407654 4130.41 4130392654 4130.39

Shares converted into shares with voting Rights during the year - - 15000 0.02

Shares bought back during the year - - - -

Balance at the end of the year 4130407654 4130.41 4130407654 4130.41

Equity shares without voting rights *

Balance at the beginning of the year 117635 0.12 132635 0.13

Shares Issued during the year - - - -

Less: Shares converted into shares with voting Rights during the year - - (15000) (0.02)

Balance at the end of the year 117635 0.12 117635 0.12

Total Equity shares outstanding 4130525289 4130.53 4130525289 4130.53

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 event of liquidation of the Parent Company.

iii) The Group does not have a holding company.

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

Name of Shareholder As at 31st As at 31st

March, 2018 March, 2017

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

held held

President of India 3097767449 75.00 3097767449 75.00

LIC of India 395451358 9.57 441874667 10.70

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

123
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
23: OTHER EQUITY
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

Reserves & Surplus

Capital Reserve
Opening balance 504.33 504.33
Additions during the year 6.59 -
Less: Utilisation during the year - 510.92 - 504.33
Securities Premium Reserve
Opening balance 235.10 235.10
Changes during the year - 235.10 - 235.10
Bond Redemption Reserve
Opening balance 1973.64 1449.96
Transfer from retained earnings 606.80 607.77
Transfer to retained earnings 239.75 2340.69 84.09 1973.64
General Reserve
Opening balance 5102.76 5100.72
Additions during the year 1.38 2.04
Less: Utilisation during the year - 5104.14 - 5102.76
Retained Earnings
Opening balance 25041.72 28680.91
Add: Net Profit/(Loss) for the year (281.40) (2,756.17)
Add: Other comprehensive Income/(Loss) 177.52 (357.29)
Add: Transfer from Bond Redemption Reserve 239.75 84.09
Less: Transfer to Bond Redemption Reserve 606.80 607.77
Less: Equity dividend 6.31 -
Less: Tax on Equity dividend 1.28 -
Transaction with non-controlling interest (0.01) (0.01)
Less: Transfer to General Reserve 1.38 24561.81 2.04 25041.72
Other Comprehensive Income
Equity Instruments through Other Comprehensive Income
Opening balance 2.80 (0.22)
Change in fair value of FVOCI equity instruments 8.79 3.02
Deferred tax - 11.59 - 2.80
Share in Other Comprehensive Income of equity accounted investees
Opening balance 51.38 50.86
Change in fair value of FVOCI equity instruments 0.49 0.52
Deferred tax - 51.87 - 51.38
Total other equity 32816.12 32911.73

Nature and purpose of other reserves

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

Securities premium reserve

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

Bond redemption reserve

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

Other Comprehensive Income (OCI) reserve

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

124
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

24. BORROWINGS - NON CURRENT

SECURED
Redeemable Non-Convertible Bonds
Rate of Interest Maturity Date Call/Put option (yr) SECURITY
REF
9.35% 9-Sep-2026 12/nil (a) 455.00 455.00
9.00% 14-Oct-2024 (a) 1000.00 1000.00
8.70% 25-Aug-2024 (a) 300.00 300.00
8.30% 1-Aug-2023 (a) 1200.00 1200.00
8.30% 3-Aug-2023 (a) 800.00 800.00
8.35% 19-Nov-2022 (a) 1185.00 1185.00
9.30% 23-Aug-2021 (a) 400.00 400.00
8.55% 11-Aug-2021 (a) 700.00 700.00
8.27% 25-Aug-2020 (a) 265.00 265.00
8.72% 30-Apr-2020 (a) 660.00 660.00
8.75% 23-Apr-2020 (a) 545.00 545.00
8.65% 1-Feb-2020 5/nil (a) 242.00 242.00
8.30% 21-Jan-2020 (a) 500.00 500.00
8.65% 30-Dec-2019 (a) 450.00 450.00
8.50% 7-Dec-2019 (a) 120.00 120.00
8.60% 19-Nov-2019 (a) 335.00 335.00
8.75% 15-Sep-2019 ( b,d ) 100.00 100.00
8.80% 22-Jun-2019 (a) 825.00 825.00
7.70% 11-May-2019 5/5 (a) 25.00 25.00
8.90% 1-May-2019 5/nil (b) 950.00 950.00
8.80% 26-Oct-2018 ( b,c ) 98.00 112.00
8.18% 10-Aug-2018 (a) - 1000.00
8.25% 27-Jul-2018 (a) - 500.00
8.35% 9-Jun-2018 (a) - 420.00
9.30% 25-May-2018 ( a,k ) 288.00 360.00
8.25% 6-May-2018 3/3 (a) - 245.00
7.95% 9-Apr-2018 (a) - 670.00
Total Bonds 11443.00 14364.00
Term Loans from banks
Rupee loans (j) 14156.00 2500.00
Foreign Currency Loans (j) 2247.26 0.00
27846.26 16864.00
UNSECURED
Foreign currency loan
1 KFW, Germany (e) 358.48 327.06
2 Sumitomo Mitsubishi Banking Corporation (f) - 0.01
3 Natexis Banque (g) 15.01 14.75
4 Mizuho Coprorate Bank ltd (h) - 322.12
Steel development fund (i) 204.16 204.16
577.65 868.10
Long term maturities of finance lease obligations 1353.25 1355.38
Total Non Current Loans 29777.16 19087.48
No loans have been guaranteed by the directors and others.
There is no default as on the balance sheet date in repayment of borrowings and interest thereon.
All bonds are repayable on the maturity date unless otherwise stated.
Bonds are secured, in respect of respective facilities by way of :
a) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad, Gujarat and parent Company's Plant & Machinery, including
the land on which it stands, pertaining to IISCO Steel Plant (ISP).
b) Secured by charges ranking pari-passu inter-se, on all the present and future immovable property at Mouje-Wadej of City taluka, District Ahmedabad, Gujarat and parent Company's Plant & Machinery, including
the land on which it stands, pertaining to Durgapur Steel Plant.( DSP ).
c) Redeemable in 12 equal yearly instalments of ` 14 crore each starting w.e.f 26th October, 2014. Instalment payable on 26th Oct, 2018 has been shown in Other Current Liabilities
d) Redeemable in 3 equal instalments of ` 50 crore each on 15th September of 2014, 2019 and 2024.
e) The soft basis of the loan was drawn in 3 tranches stated as 1(a), 1(b) and 1( c) at an interest rate of 8.75% p.a. The Interest on 1(a) is 0.75% p.a and balance 8% is towards meeting exchange fluctuation (4%)
and pollution control schemes (4%). In case of 1 (b) the Interest is 0.75% p.a and balance 8.0% p.a is towards periphery development. The Interest on 1(c) is 3.66% p.a and the balance 5.09% p.a is towards
meeting periphery development. The principal and interest is repayable half yearly. The loan is Guaranteed by Government of India.
f) The loan is repayable in 3 equal yearly instalments on 16th November starting from 2015 at an interest rate of 6 month LIBOR +1.06%. Interest is paid half yearly.
g) The loan is repayable by 2030. The principal and interest is paid half yearly, guaranteed by Government of India.
h) The loan is repayable in 3 equal yearly instalments on 21st December starting from 2016 at an interest rate of 6 month LIBOR +1.75%. Interest is paid half yearly.
i) Terms of Repayment is to be decided by SDF management Committee.
j) Secured by charges ranking pari-pasu on the present and future movable plant and machinery of BSL & BSP to the extent of loan. SBIECB loan is repayable in 4 equal installments at the end of 4th, 5th, 6th and 7th
from the first draw-down i.e. 25th Sept 2017.
k) Redeemable in 5 equal yearly instalments starting w.e.f 25th May, 2018. Installment payable on 25th May, 2018 has been shown in current liabilities.

125
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

25: TRADE PAYABLES - NON CURRENT

Due to micro, small and medium enterprise (refer note 48.2) - -

Amount payable to contractors/suppliers/others 6.38 7.36
6.38 7.36

26: OTHER FINANCIAL LIABILITIES - NON CURRENT

Employees related dues 430.68 458.39

Interest Accrued but not due on borrowings 551.46 580.25
Other payables 197.22 327.29
1179.36 1365.93

27: PROVISIONS - NON CURRENT

Provision for gratuity - 81.90

Provision for accrued leave liability 2477.94 2437.58
Provision for post retirement medical & settlement benefits 974.81 931.02
Provision for long term service award 20.90 19.98
Provision for mines closure 61.64 53.97
Other provisions 439.13 71.95
3974.42 3596.40

28: OTHER LIABILITIES - NON CURRENT

Deferred Income* 138.33 151.29

138.33 151.29
*Government grants
Opening balance 27.79 26.95
Additions - 2.12
Released to statement of profit and loss - (1.28)
27.79 27.79

*Deferred income inlcudes award conferred by the Prime Minister of India to the Bhilai Steel Plant as best integrated steel plant in India and the earnings from the fund are utilised for the
welfare of the employees in Bhilai.

29. BORROWINGS - CURRENT

Secured
Repayable on demand
From banks 2334.39 1302.09
Other loans and advances
From Banks - 250.00
Unsecured
Other loans 2950.00 600.00
Commercial paper 3961.88 7883.93
Foreign currency loans 2998.05 9777.02
12244.32 19813.04

1. Security disclosure for the outstanding short term borrowings as on 31st March, 2018:
Borrowings from banks are secured, in respect of respective facilities by way of :
(i) Hypothecation of all current assets

126
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

As at 31st As at 31st
March, 2018 March, 2017

30: TRADE PAYABLES - CURRENT

Due to micro, small and medium enterprises (refer note 48.2) 48.22 38.12
Amount payable to related parties 9.30 11.58
Amount payable to contractors/suppliers/others 7469.12 5168.71
7526.64 5218.41

31: OTHER FINANCIAL LIABILITIES - CURRENT

Employee related dues 159.95 161.73

Interest accrued but not due on borrowings 1072.54 1076.09
Other liabilities-debtors banking arrangement 325.45 228.16
Derivative liability 65.24 603.57
Current maturities of long term debts 3271.71 2381.74
Current maturities of finance lease obligations 115.53 113.39
Unclaimed matured deposits and interest accrued thereon 1.01 1.03
Security deposits 1325.77 1233.06
Less: Investments received as security deposit - 1325.77 - 1233.06
Unpaid dividends 6.21 8.53
Payable for capital works 3708.94 2532.75
Other payables 4137.97 4441.91
14190.32 12781.96

32: OTHER LIABILITIES - CURRENT

Income received in advance from customers 1882.56 1763.07

Income received in advance - others 112.80 82.53
Deferred Income* 11.90 10.98
GST payable 2135.74 -
Other payables 3001.75 3752.98
7144.75 5609.56

*Deferred income inlcudes award conferred by the Prime Minister of India to the Bhilai Steel Plant as best integrated steel plant in India and the earnings from the fund are utilised for the
welfare of the employees in Bhilai.

33: PROVISIONS - CURRENT

Provision for gratuity 31.12 237.22

Provision for accrued leave liability 309.04 303.75
Provision for post retirement medical & settlement benefits 105.60 108.95
Provision for long term service award 2.03 3.06
Provision for pollution control 40.30 39.43
Provision for foreign exchange fluctuation - 13.02
Provision for wage revision 1216.24 1545.02
Provision for mine afforestation/ restoration etc. 319.25 341.97
Other provisions 289.05 332.45
2312.63 2924.87

34: CURRENT TAX LIABILITIES (NET)

Opening Balance 6.66 11.90

Add : Provision during the year 7.06 -
Less: Amount paid/transferred during the year 13.72 (4.77 )
Less: Provision written back during the year - - - 16.67
- 16.67

127
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

35. REVENUE FROM OPERATIONS

Sale of products
Domestic 55974.82 47437.74
Exports 2243.70 1737.83
Export incentives 82.48 66.37
Sub Total (a) 58301.00 49241.94
Sale of Services
Service charges 23.56 31.89
Sub Total (b) 23.56 31.89
Other Operating Revenues
Social amenities-recoveries 337.82 334.01
Sale of empties etc. 80.00 70.74
Sundries 223.78 150.37
Sub Total (c) 641.60 555.12
Total ( a+b+c ) 58966.16 49828.95

36. OTHER INCOME

Interest income
Loans & advances to other companies 0.78 0.88
Customers 101.78 80.87
Employees 16.75 20.21
Bank deposits 9.79 4.85
Others 41.94 45.23
Sub Total (a) 171.04 152.04
Dividend income
Dividend from investments 1.85 1.05
(includes dividend from investments carried at fair value through OCI)

Sub Total (b) 1.85 1.05

Net gain on sale of investments Sub Total ( c ) - 0.01
Other non-operating Income
Subsidy, relief and concession 6.12 4.43
Grant-in-aid 0.54 0.10
Provisions no longer required written back 90.64 42.66
Write back of other liabilities 81.62 54.96
Liquidated damages 20.02 75.53
Foreign exchange fluctuations (net) - 76.60
Others 43.36 42.10
242.30 296.38
Less: Expenses attribtable to non-operating income - -
Sub Total (d) 242.30 296.38
Total (a+b+c+d) 415.19 449.48

128
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

37: COST OF MATERIALS CONSUMED

Iron ore 3818.79 3614.87

Coal 21445.07 16198.51
Coke 31.63 70.64
Limestone 1232.17 1107.24
Dolomite 474.80 450.33
Ferro manganese 337.61 340.96
Ferro silicon 201.73 193.63
Silico manganese 1193.85 904.24
Intermediary Products - 0.01
Zinc 176.84 122.03
Aluminium 242.58 226.91
Others 1358.94 1321.62
30514.01 24550.99
Less: Inter account adjustments 3776.11 3389.54
26737.90 21161.45

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

Opening stock
Finished goods 5829.61 5552.75
Work in progress 3990.99 4398.43
9820.60 9951.18
Less: Closing stock
Finished goods 4440.25 5829.61
Work in progress 3213.64 3990.99
7653.89 9820.60
2166.71 130.58
Less : Excise duty on accretion (-) /depletion to stock 1027.89 13.24
1138.82 117.34

39: EMPLOYEE BENEFITS EXPENSE*

Salaries & wages 6474.19 6888.42

Leave encashment 357.93 491.23
Company's contribution to provident & other funds 754.60 889.91
Travel concession 61.56 22.21
Welfare expenses 356.32 314.27
Gratuity 861.27 357.74
8865.87 8963.78
*Expenditure on Employees's remuneration and benefits not included above and charged to:
Expenditure during construction 100.72 136.16
**For descriptive notes on disclosure of defined benefit obligation, refer note 50

129
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

40: FINANCE COSTS

Interest Cost
Foreign currency loans* 526.99 552.45
Non convertible bonds 915.78 794.54
Bank borrowings - working capital 42.97 63.12
Steel development fund loans 4.08 3.74
Others 1319.53 1105.51
Interest under Income Tax Act - 0.01
Other borrowing costs 13.40 8.45
2822.75 2527.82
*Including foreign exchange fluctuations gain of `120.04 crore (previous year: `188.52 crore loss)
Expenditure on Interest & Finance charges not included above and charged to Expenditure during Construction:
Foreign currency loans 94.89 108.06
Non convertible bonds 365.43 468.48
Steel development fund loans - Interest 4.09 4.43
Others 204.11 0.93
668.52 581.90

41: OTHER EXPENSES

Consumption of stores & spares

Consumption 3490.03 3621.32

Less: Departmentally manufactured stores 735.15 859.64

Less: Finished products internally consumed as stores and spares 473.26 2281.62 532.15 2229.53

Repairs & maintenance

Buildings 194.71 202.18

Plant & machinery 821.88 714.23

Others 228.77 1245.36 223.86 1140.27

Handling expenses

Raw material 428.15 333.34

Scrap recovery 282.30 710.45 297.33 630.67

Remuneration to auditors

Audit fees 1.80 1.94

Tax audit fees 0.51 0.47

In other services 1.16 0.99

Out of pocket expenses 0.68 4.15 0.65 4.05

Provisions

Doubtful debts, loans and advances 85.42 74.47

Investments 13.08 0.20

Stores, spares and sundries 117.70 216.20 73.00 147.67

Power and fuel 5815.89 5249.99

Freight outward 2247.29 1166.58

Royalty and cess 1271.58 997.18

130
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)

For the year ended For the year ended

31st March, 2018 31st March, 2017

41: OTHER EXPENSES (CONTD.)

Conversion charges 306.08 454.33

Excise duty on inter-plant transfer/internal consumption 63.76 292.12

Demurrage & wharfage 38.82 53.41

Water charges & cess on water pollution 115.82 121.02

Insurance 24.99 32.50

Postage, telegram & telephone 16.84 20.53

Printing & stationery 8.28 9.88

Rates & taxes 58.64 69.82

Rent 80.61 60.77

Security expenses 514.24 492.65

Travelling expenses 157.72 156.48

Expenditure on temporary suspended mines (refer note - 49.18) 82.07 97.95

Law Charges 0.15 0.00

Training expenses 42.08 30.60

Expenditure on corporate social responsibility (refer note - 49.10) 26.34 29.62

Foreign exchange fluctuations (net) 3.74 -

Loss on dilution of stake in joint ventures (net) - 0.50

Loss on sale/scrapping of fixed assets (net) 72.80 48.17

Cost of Audit fee and reimbursement of expenses 0.05 0.32

Write-offs - Miscellaneous 2.61 0.01

Handling expenses - finished goods 188.31 160.75

Commission to selling agents 6.53 7.34

Export sales expenses 47.01 22.97

Miscellaneous 531.79 464.43

16181.82 14192.11

41A: EXCEPTIONAL ITEMS

Volantary retirement compensation 254.20 216.74

Write back of pension liabilities (458.16) -
Provision for illegal mining 340.72 -
Reversal of District Mineral Fund (261.76) -
Reversal of wages and salary (110.82) -
Provision for surrender of coal blocks 209.39 -
(26.43) 216.74

131
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
42. FINANCIAL INSTRUMENTS
i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are categorized into three levels of a fair value hierarchy. The three levels are
defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market
data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
ii) Financial assets and liabilities measured at fair value - recurring fair value measurements (` crore)
st
As at 31 March, 2018 Level 1 Level 2 Level 3 Total
Financial assets
Financial instruments at FVTPL
Derivative financial assets 124.39 124.39
Investments at FVOCI
Equity instruments*
Quoted 15.80 15.80
Unquoted 64.69 64.69

Total financial assets 15.80 124.39 64.69 204.88

Financial liabilities
Financial instruments at FVTPL
Derivative liability 65.24 65.24

Total financial liabilities - 65.24 - 65.24

Financial assets and liabilities measured at fair value - recurring fair value measurements (` crore)
st
As at 31 March, 2017 Level 1 Level 2 Level 3 Total
Financial assets
Financial instruments at FVTPL
Derivative financial assets 227.54 227.54
Investments at FVOCI
Equity instruments*
Quoted 13.30 13.30
Unquoted 58.39 58.39

Total financial assets 13.30 227.54 58.39 299.23

Financial liabilities
Financial instruments at FVTPL
Derivative liability 603.57 603.57

Total financial liabilities - 603.57 - 603.57

iii) Financial assets and liabilities - for which fair values are disclosed (` crore)
st st
Level As at 31 March, 2018 As at 31 March, 2017

Carrying value Fair Value Carrying value Fair Value

Financial assets
Loans Level-3 515.38 545.27 526.25 534.66
Derivative financial assets Level-2 124.39 124.39 227.54 227.54
Equity instruments*
Quoted Level-1 15.80 15.80 13.30 13.30
Unquoted Level-3 64.69 64.69 59.43 59.43

Total financial assets 720.26 750.15 826.52 834.93

Financial liabilities
Borrowings Level-3 47358.17 47714.31 43280.15 43628.65
Other payables Level-3 9967.75 10008.93 9164.70 9298.02
Derivative liability Level-2 65.24 65.24 603.57 603.57

Total financial liabilities 57391.16 57788.48 53048.42 53530.24

132
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(iv) Valuation process and technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) Fair value of interest swap is determined based on dealer or counterparty quotes for similar instruments
(b) Fair value of forward foreign exchange contract and principal swap is determined using forward rate at balance sheet date.
(c) The carrying value of borrowings bearing variable interest rate are considered to be representative of their fair value.
(d) The carrying value of financial assets and liabilities with maturities less than 12 months are considered to be representative of their fair value.
(e) Fair value of fixed interest rate financial assets and liabilities carried at amortised cost (including finance lease obligations) is determined by discounting the cash flows
using a discount rate equevalent to market interest rate applicable to similar assets and liabilities as at the balance sheet date.
(v) Unquoted investments:
Fair value estimates of unquoted equity investments are included in level-3 and are based on information relating to value of investee company's net assets. For investments in co-
operative societies, the Company has determined that cost is appropriate estimate of fair value, therefore, there have been no changes on account of fair values.
vi) The following table presents the changes in value of financial instruments measured at fair value using level 3 inputs: (` crore)

Unlisted equity securities

As at 31st March, 2016 59.43
Gains/losses recognised in other comprehensive income -
As at 31st March, 2017 59.43
Gains/losses recognised in other comprehensive income 5.26
As at 31st March, 2018 64.69

43. FINANCIAL RISK MANAGEMENT

i) Financial instruments by category (` crore)
As at 31st March, 2018 As at 31st March, 2017
Particulars FVTPL FVOCI Amortised FVTPL FVOCI Amortised
cost cost
Financial assets
Investments
Equity instruments* 80.49 72.73
Trade receivables 3870.99 2934.69
Cash and cash equivalents 94.00 140.64
Other Bank Balances 251.55 238.19
Loans 515.38 526.25
Derivative financial assets 124.39 227.54
Other receivables 2825.89 2299.82
Total 124.39 80.49 7557.81 227.54 72.73 6139.59
Financial liabilities
Borrowings 47358.17 43280.15
Trade payable 7533.02 5225.77
Derivative Liability 65.24 603.57
Other payables 9967.75 9164.70
Total 65.24 - 64858.94 603.57 - 57670.62
* Investment in equity of joint ventures and associates have been carried at cost as per Ind AS 27 "Separate financial statements" and hence are not presented here.
ii) Risk Management
The Group is exposed to various risk in relation to financial instruments. The Group's financial asset and liabilities are by category are summarised in note 42 (i). The main types
of risks are market risk, credit risk and liquidity risk. The Group’s risk management is co-ordinated at its headquarters, in close cooperation with the board of directors, and focuses
on actively securing the Group’s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to
generate lasting returns. The Group does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks
to which the Group is exposed are described below.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Comapny. The Group is exposed to this risk for various financial instruments, for example by granting
loans and receivables to customers, placing deposits, etc. The Group’s maximum exposure to credit risk is limited to the carrying amount of following types financial assets.
-Cash and cash equivalents
-Derivative financial instruments
-Trade receivables
-Other financial assets measured at amortized cost
The Group continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk
controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Group's policy is to deal only
with creditworthy counterparties.

133
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
a) Credit risk management
Cash and cash equivalent
Credit risk related to cash and cash equivalents is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the
country.
Derivative financial instruments
Credit risk related to derivative financial instruments is also managed by only entering into such arrangement with highly rated banks orfinancial institutions as counterparties.
The company diversifies its holdings with multiple counterparties.
Trade receivables
Credit risk related to trade receivables are mitigated by taking bank guarantees from customers where credit risk is high. The Company closely monitors the credit-worthiness
of the debtors and only sells goods to credit-worthy parties. The Group's internal systems are configured to define credit limits of customers, thereby limiting the credit risk to
pre-calculated amounts.
Other financial assets measured at amortized cost
Other financial assets measured at amortized cost includes loans and advances to employees and others. Credit risk related to these other financial assets is managed by
monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
b) Expected credit losses
Company provides expected credit losses based on the following
Trade receivables
The Group recognizes lifetime expected credit losses on trade receivables using a simplified approach and uses historical information to arrive at loss percentage relevant to
each category of trade receivables:
(` crore)
Ageing (As at 31st March, 2018) 0-3 months 3-12 months 12-24 months 24-36 months more than Total
36 months
Gross carrying amount 3005.30 697.14 92.93 74.74 197.58 4067.69
Expected loss rate 0.25% 0.38% 2.30% 2.81% 92.26% 4.84%
Expected credit loss provision 7.52 2.66 2.14 2.10 182.28 196.70
Carrying amount of trade receivables 2997.78 694.48 90.79 72.64 15.30 3870.99
(Net of impairment)

Ageing (As at 31st March, 2017) 0-3 months 3-12 months 12-24 months 24-36 months more than Total
36 months
Gross carrying amount 2295.26 420.10 135.85 37.96 227.41 3116.58
Expected loss rate 0.03% 0.37% 1.84% 6.61% 76.84% 5.84%
Expected credit loss provision 0.59 1.54 2.50 2.51 174.74 181.89
Carrying amount of trade receivables 2294.67 418.56 133.35 35.45 52.67 2934.69
(Net of impairment)

Reconciliation of Expected credit loss provision (` crore)

Particulars Unlisted equity securities
As at 31st March, 2016 152.24
Changes in provision 24.24
As at 31st March, 2017 181.89
Changes in provision 14.81
As at 31st March, 2018 196.70

Other financial assets measured at amortized cost

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

134
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)
st
Contractual maturities of financial liabilities as at 31 March, 2018 Less than 1-2 year 2-3 year More than Total
1 year 3 years
Non-derivatives
Borrowings* 18348.05 5719.16 4611.01 27190.55 55868.77
Trade payable 7526.64 0.64 0.85 4.89 7533.02
Other payables 10392.85 112.45 96.56 1270.94 11872.80

Total 36267.54 5832.25 4708.42 28466.38 75274.59

Derivatives
Derivative liability (Net Settled) 65.24 - - - 65.24

Total 65.24 - - - 65.24

Contractual maturities of financial liabilities as at 31st March, 2017 Less than 1-2 year 2-3 year More than Total
1 year 3 years
Non-derivatives
Borrowings* 24177.67 4569.02 4652.70 13282.34 46681.74
Trade payable 5218.41 1.29 5.64 0.43 5225.77
Other payables 10436.75 125.35 105.25 1453.49 12120.84

Total 39832.83 4695.66 4763.59 14736.26 64028.35

Derivatives
Derivative liability 603.57 - - - 603.57

Total 603.57 - - - 603.57

* borrowings excludes finance lease obligations, refer note 49.11(b) for disclosure of maturity profile of finance lease obligations.

C) Market Risk
a) Foreign currency risk
Most of the Group’s transactions are carried out in INR. Exposures to currency exchange rates arise from the Group’s overseas borrowing arrangements, which are primarily
denominated in US dollars (USD). To mitigate the Group’s exposure to foreign currency risk, non-INR cash flows are monitored and forward exchange contracts are entered into in
accordance with the Group’s risk management policies. Generally, the Group’s risk management procedures distinguish short-term foreign currency cash flows (due within 6
months) from longer-term cash flows (due after 6 months). Where the amounts to be paid and received in a specific currency are expected to largely offset one another, no further
hedging activity is undertaken. Forward exchange contracts are mainly entered into for significant long-term foreign currency exposures that are not expected to be offset by other
same-currency transactions.
Foreign currency risk exposure:
The Company's significant exposures to foreign currency risk at the end of the reporting period expressed in ` crore are as follows:
Particulars As at 31st March, 2018 As at 31st March, 2017
USD Euro USD Euro
Financial assets
Trade receivables 1.89 38.25
Derivative financial assets (Gross amounts, to hedge borrowings) 3343.41 10099.90

Net exposure to foreign currency risk (assets) 3345.30 - 10138.15 -

Financial liabilities
Borrowings 3619.36 327.06 13039.83 327.06
Trade payable 90.63 330.72 57.25 307.02
Derivative Liability 29.35
Other payables 68.30 137.27

Net exposure to foreign currency risk (liabilities) 3807.64 795.05 13097.08 634.08

Sensitivity
The following table illustrates the sensitivity of profit and equity in regards to the Group’s financial assets and financial liabilities and the USD/INR exchange rate and EUR/INR
exchange rate ‘all other things being equal’. It assumes a +/- 4.24% change of the INR/USD exchange rate for the year ended at 31 March, 2018 (2017:4.09%). A +/- 6.90%
change is considered for the INR/EUR exchange rate (2017: 7.86%). Both of these percentages have been determined based on the average market volatility in exchange rates in the
previous 12 months. The sensitivity analysis is based on the Company’s foreign currency financial instruments held at each reporting date and also takes into account forward
exchange contracts that offset effects from changes in currency exchange rates.

135
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(` crore)
st st
Particulars As at 31 March, 2018 As at 31 March, 2017
USD sensitivity
INR/USD- increase by 4.24% (31 March 2018) (19.60)
INR/USD- decrease by 4.24% (31 March 2018) 19.60
INR/USD- increase by 4.09% (31 March 2017) (121.02)
INR/USD- decrease by 4.09% (31 March 2017) 121.02
Euro sensitivity
INR/EUR- increase by 6.90% (31 March 2018) (54.86)
INR/EUR- decrease by 6.90% (31 March 2018) 54.86
INR/EUR- increase by 7.86% (31 March 2017) (49.84)
INR/EUR- decrease by 7.86% (31 March 2017) 49.84

b) Interest rate risk

The Group’s policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term borrowings are therefore usually at fixed rates. At 31st March, 2018, the
Company is exposed to changes in market interest rates through bank borrowings at variable interest rates. Other borrowings are at fixed interest rates. The Group’s investments in
bonds all pay fixed interest rates. The exposure to interest rates for the Group’s money market funds is considered immaterial. The following table illustrates the sensitivity of profit
and equity to a reasonably possible change in interest rates of +/- 1% (2017: +/- 1%). These changes are considered to be reasonably possible based on observation of current
market conditions. The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each reporting date that are
sensitive to changes in interest rates. All other variables are held constant.
i) Liabilities
The company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31st March, 2018, the Group is exposed to changes in market interest rates
through bank borrowings at variable interest rates.
Interest rate risk exposure
Below is the overall exposure of the company to interest rate risk: (` crore)
st st
Particulars As at 31 March, 2018 As at 31 March, 2017
Variable rate borrowing (excluding exposures offset by derivatives) 2998.05 9777.02
Fixed rate borrowing 44360.12 33503.13

Total borrowings 47358.17 43280.15

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

Particulars As at 31st March, 2018 As at 31st March, 2017

Interest sensitivity
Interest rates-increase by 100 basis points 473.58 432.80
Interest rates-decrease by 100 basis points (473.58) (432.80)

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

Particulars As at 31st March, 2018 As at 31st March, 2017

Variable rate deposits/ loans - -
Fixed rate deposits/ loans 766.93 674.62

Total deposits 766.93 674.62

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

136
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
44. CAPITAL MANAGEMENT
The company’ s capital management objectives are
- to ensure the company’s ability to continue as a going concern
- to provide an adequate return to shareholders
The Group monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
Management assesses the Group’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the
subordination levels of the company’s various classes of debt. The Group manages the capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
(` crore)
st st
Particulars As at 31 March, 2018 As at 31 March, 2017
Net debts 47012.62 42901.32
Total equity 36946.65 37042.26

Net debt to equity ratio 1.27 1.16

Dividends
(i) Equity shares
Final dividend for the year ended 31st March, 2018 of @nil Nil Nil
(ii) Dividends not recognised at the end of the reporting period Nil Nil

44A. SUMMARISED FINANCIAL INFORMATION OF EQUITY METHOD INVESTEES

A. Joint ventures individually significant

NTPC SAIL Power Company Limited Mjunction Services Limited
(` crore) (` crore)

Summarised balance sheet 31st March, 31st March, Summarised balance sheet 31st March, 31st March,
2018 2017 2018 2017

Current assets Current assets

Cash and cash equivalents 43.44 5.14 Cash and cash equivalents 4.08 51.72
Other assets 764.17 920.51 Other assets 307.48 210.95
807.61 925.65 311.56 262.67
Non-current assets 2,789.19 2,202.61 Non-current assets 99.87 93.99
Curent Liabilities Curent Liabilities
Financial liabilities (excluding trade payables 468.97 316.96 Financial liabilities (excluding trade payables 133.51 92.08
and provisions) and provisions)
Other Liabilities 122.63 103.23 Other Liabilities 10.14 24.90
591.60 420.19 143.65 116.98
Non-Current liabilities Non-Current liabilities
Financial liabilities (excluding trade payables 711.29 570.13 Financial liabilities (excluding trade payables - -
and provisions) and provisions)
Other liabilities 109.70 164.43 Other liabilities 13.01 12.60
820.99 734.56 13.01 12.60
Net Assets 2,184.21 1,973.51 Net Assets 254.77 227.08
Ownership Interest 50.00% 50.00% Ownership Interest 50.00% 50.00%
Carrying Amount of Interest 1,092.11 986.76 Carrying Amount of Interest 127.39 113.54

(` crore) (` crore)

Summarised statement of st
31 March, st
31 March, Summarised statement of st
31 March, st
31 March,
Profit and Loss 2018 2017 Profit and Loss 2018 2017

Revenue 2,602.17 2,526.31 Revenue 204.60 176.15

Depreciation and ammortisation 150.38 147.20 Depreciation and ammortisation 8.78 8.07
Interest income 29.37 94.46 Interest income 0.72 0.16
Interest Expense 41.19 76.52 Interest Expense 0.04 -
Income tax expense or income 12.94 46.73 Income tax expense or income 18.47 16.06
Profit or loss from continuing operations 331.71 388.87 Profit or loss from continuing operations 42.43 37.75
Post-tax profit or loss from discontinued operations - - Post-tax profit or loss from discontinued operations - -
Other comprehensive income (0.68) (2.08) Other comprehensive income 1.26 0.25
Total comprehensive income 331.03 386.79 Total comprehensive income 43.69 38.00
Ownership interest 50.00% 50.00% Ownership interest 50.00% 50.00%

137
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
International Coal Ventures Private Limited (` crore)
(` crore)
st st
Summarised statement of 31 March, 31 March,
Profit and Loss 2018 2017
Summarised balance sheet 31st March, 31st March,
2018 2017
Revenue 896.44 900.72
Current assets Depreciation and ammortisation - -
Cash and cash equivalents 27.02 50.92 Interest income - 25.61
Other assets 69.58 37.21 Interest Expense 17.03 15.66
96.60 88.13 Income tax expense or income (0.48) 2.09
Non-current assets 2,233.33 2,217.58
Profit or loss from continuing operations 79.28 78.54
Curent Liabilities
Post-tax profit or loss from discontinued operations - -
Financial liabilities (excluding trade payables 246.16 248.04
and provisions) Other comprehensive income 0.81 (0.49)
Other Liabilities 0.11 0.51 Total comprehensive income 80.09 78.53
246.27 248.55 Ownership interest 50.00% 50.00%
Non-Current liabilities
Financial liabilities (excluding trade payables - - Bhilai Jaypee Cement Limited
and provisions)
(` crore)
Other liabilities 15.98 14.58
15.98 14.58
Summarised balance sheet 31st March, 31st March,
Net Assets 2,067.68 2,042.58 2018 2017
Less: Share Application Money Pending Alottment 180.01
2,067.68 1,862.57 Current assets
Ownership Interest 47.82% 46.73% Cash and cash equivalents 5.58 4.20
Carrying Amount of Interest 988.76 870.38 Other assets 46.50 31.43
52.08 35.63
(` crore)
Non-current assets 750.67 775.68
Summarised statement of 31st March, 31st March, Curent Liabilities
Profit and Loss 2018 2017 Financial liabilities (excluding trade payables 167.58 258.54
and provisions)
Revenue 43.46 13.91 Other Liabilities 564.38 435.83
Depreciation and ammortisation 0.11 0.13
731.96 694.37
Interest income - 0.65
Non-Current liabilities
Interest Expense 6.73 89.91
Financial liabilities (excluding trade payables 9.09 13.94
Income tax expense or income - 0.40
and provisions)
Profit or loss from continuing operations 21.28 (67.33)
Other liabilities 6.27 5.62
Post-tax profit or loss from discontinued operations - -
15.36 19.56
Other comprehensive income 3.82 3.26
Total comprehensive income. 25.10 (64.07) Net Assets 55.43 97.38
Ownership interest 47.82% 46.73% Ownership Interest 26.00% 26.00%
Calculated Share of Net Assets 14.41 25.32
Bokaro Power Supply Company Pvt. Ltd. Goodwill 5.73
(` crore) Carrying amount of Interest 14.41 31.05

Summarised balance sheet 31st March, 31st March,

2018 2017
(` crore)
Current assets
Cash and cash equivalents 95.46 134.91 Summarised statement of 31st March, 31st March,
Other assets 323.00 295.04 Profit and Loss 2018 2017
418.46 429.95
Revenue 207.96 84.13
Non-current assets 902.48 834.01
Curent Liabilities Depreciation and ammortisation 38.80 38.43
Financial liabilities (excluding trade payables 186.79 150.74 Interest income - -
and provisions) Interest Expense 12.27 18.92
Other Liabilities 25.03 70.72 Income tax expense or income 15.90 (30.80)
211.82 221.46
Profit or loss from continuing operations 42.04 (69.03)
Non-Current liabilities
Post-tax profit or loss from discontinued operations - -
Financial liabilities (excluding trade payables - 15.79
and provisions) Other comprehensive income 0.08 (0.31)
Other liabilities 292.00 258.20 Total comprehensive income 42.12 (69.34)
292.00 273.99 Ownership interest 26.00% 26.00%
Net Assets 817.12 768.51
Ownership Interest 50.00% 50.00%
Carrying Amount of Interest 408.56 384.26

138
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
B. Summarised financial information for Joint Ventures not individually significant D. The unrecognised share of losses of joint ventures, both for the reporting period and
(` crore) cumulatively, where SAIL has stopped recognising its share of losses of the joint venture
when applying the equity method
Summarised statement of 31st March, 31st March, (` crore)
Profit and Loss 2018 2017
31st March, 2018 31st March, 2017
Profit or loss from continuing operations (33.09) (24.89)
Post-tax profit or loss from discontinued operations - - SAL SAIL JVC Limited - Reporting - -
Other comprehensive income 0.02 0.01 SAL SAIL JVC Limited - Cumulative 0.01 0.01
SAIL MOIL Ferro Alloys Private Limited - Reporting 4.57 0.19
Total comprehensive income (33.07) (24.88) SAIL MOIL Ferro Alloys Private Limited - Cumulative 6.24 1.67
SAIL SCL Kerala Limited - Reporting 8.64 4.84
SAIL SCL Kerala Limited - Cumulative 20.89 12.25
Abhinav SAIL JVC Limited - Reporting - -
C. Associates, not individually significant (` crore) Abhinav SAIL JVC Limited - Cumulative 0.01 0.01
S&T Mining Pvt Limited - Reporting 3.26 -
Summarised statement of 31st March, 31st March, S&T Mining Pvt Limited - Cumulative 3.26 -
Profit and Loss 2018 2017 SAIL Bengal Alloy Casting Private Limited - Reporting - -
SAIL Bengal Alloy Casting Private Limited - Cumulative 0.01 0.01
Profit or loss from continuing operations 1.73 0.52
Post-tax profit or loss from discontinued operations - - E. Dividend Recieved from the Joint Ventures (` crore)
Other comprehensive income - - 31st March, 2018 31st March, 2017
Total comprehensive income 1.73 0.52
NTPC SAIL Power Company Limited 50.00 84.25
Mjunction Services Limited 5.60 7.22
International Coal Ventures Private Limited - -
Bokaro Power Supply Co. Private Limited 12.40 12.32
Bhilai Jaypee Cement Limited - -

44B. DETAILS OF SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

Proportionate Ownership in %
S. Name Relationship Nature of activity Principal Place Principal Place As at 31st As at 31st
No. of Incorporation of Business March, 2018 March, 2017

1 SAIL Jagdishpur Power Plant Limited Subsidiary Power Production India India 100% 100%
2 SAIL Refractory Company Limited Subsidiary Refactory Material production India India 100% 100%
3 SAIL Sindri Projects Limited Subsidiary Cement production India India 100% 100%
4 Chhattisgarh Mega Steel Limited Subsidiary Steel production India India 74% 74%
5 NTPC SAIL Power Company Ltd Joint-ventures Power Production India India 50% 50%
6 Bokaro Power Supply Co. Pvt. Ltd. Joint-ventures Power Production India India 50% 50%
7 Mjunction Services Limited Joint-ventures Consultancy services India India 50% 50%
8 SAIL Bansal Service Centre Ltd Joint-ventures Consultancy services India India 40% 40%
9 Bhilai Jaypee Cement Limited Joint-ventures Cement production India India 26% 26%
10 S& T Mining Co. Pvt. Limited Joint-ventures Coal Mining India India 50% 50%
11 International Coal Ventures Private Ltd. Joint-ventures Coal Mining India Mozambique 48% 47%
12 SAIL-MOIL Ferro Alloys Private Ltd. Joint-ventures Ferro Manganese production India India 50% 50%
13 SAIL SCI Shipping Pvt. Limited Joint-ventures Logistics India India 50% 50%
14 SAIL SCL Kerala Limited Joint-ventures Steel production India India 49% 49%
15 SAIL RITES Bengal Industry Pvt. Ltd. Joint-ventures Railway Wagon Production India India 50% 50%
16 SAIL Kobe Iron India Pvt. Limited Joint-ventures Steel production India India 50% 50%
17 SAIL-BENGAL Alloy Castings Private Ltd. Joint-ventures Alloy Casting India India 50% 50%
18 Prime Gold-SAIL JVC Limited Joint-ventures Steel production India India 26% 26%
19 VSL SAIL JVC Limited Joint-ventures Alloy Casting India India 21% 21%
20 Abhinav SAIL JVC Limited Joint-ventures Alloy Casting India India 26% 26%
21 NMDC SAIL Limited Joint-ventures Railway Project India India 49% 49%
22 TMT SAL SAIL JV Limited Joint-ventures Metal Products India India 26% 26%
23 SAL SAIL JVC Limited Joint-ventures Metal Products India India 26% 26%
24 Bastar Railway Private Limited Joint-ventures Railway Project India India 21% 21%
25 Almora Magnesite Limited Associate Megnesite Mining India India 20% 20%

139
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
44C.INFORMATION REQUIRED BY SCHEDULE III OF THE COMPANIES ACT 2013, WITH RESPECT TO CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March, 2018

Name of the entity in the group Ownership Proportionate As % of Share in As % of Share in As % of Share in As % of
in % Share Consolidated Profit/ (Loss) Consolidated Other Consolidated Total Consolidated
As at 31 Net Worth Profit/ (Loss) Comprehensive Other Comprehensive Total
March, 2018 Income Comprehensive Income Comprehensive
Income Income

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

140
International Coal Ventures Private Ltd. 47.82 988.76 2.68% 10.18 -3.62% 1.83 0.98% 12.01 -12.70%
SAIL-MOIL Ferro Alloys Private Ltd. 50 - 0.00% (4.57) 1.62% - 0.00% (4.57) 4.83%
SAIL SCI Shipping Pvt. Limited 50 0.06 0.00% (0.01) 0.00% - 0.00% (0.01) 0.01%
SAIL SCL Kerala Limited 49.26 - 0.00% (7.98) 2.84% - 0.00% (7.98) 8.44%
SAIL RITES Bengal Industry Pvt. Ltd. 50 12.76 0.03% (2.07) 0.74% - 0.00% (2.07) 2.19%
SAIL Kobe Iron India Pvt. Limited 50 0.26 0.00% - 0.00% - 0.00% - 0.00%
SAIL-BENGAL Alloy Castings Private Ltd. 50 - 0.00% (0.01) 0.00% - 0.00% (0.01) 0.01%
Prime Gold-SAIL JVC Limited 26 5.63 0.02% (0.75) 0.27% - 0.00% (0.75) 0.79%
VSL SAIL JVC Limited 20.58 1.21 0.00% (0.09) 0.03% - 0.00% (0.09) 0.10%
Abhinav SAIL JVC Limited 26 - 0.00% (0.01) 0.00% - 0.00% (0.01) 0.01%
NMDC SAIL Limited 49 0.02 0.00% - 0.00% - 0.00% - 0.00%
TMT SAL SAIL JV Limited 26 - 0.00% - 0.00% - 0.00% - 0.00%
SAL SAIL JVC Limited 26 0.01 0.00% - 0.00% - 0.00% - 0.00%
Bastar Railway Private Limited 21 0.23 0.00% (0.51) 0.18% - 0.00% (0.51) 0.54%
Associates 0.00%
AlmoraMagnesite Limited 20 1.35 0.00% 0.35 -0.12% - 0.00% 0.35 -0.37%
Non-controlling interest - -
Consolidation adjustments (1,546.00) -4.17% (21.18) 7.53% - 0.00% (21.17) 22.38%
Grand total 36,946.66 100.00% (281.40) 100.00% 186.80 100.00% (94.60) 100.00%
 Notes to Consolidated Financial Statements for the Year ended 31st March, 2018

44D. INFORMATION REQUIRED BY SCHEDULE III OF THE COMPANIES ACT 2013, WITH RESPECT TO CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March, 2017

Name of the entity in the group Ownership Proportionate As % of Share in As % of Share in As % of Share in As % of
in % Share Consolidated Profit/ (Loss) Consolidated Other Consolidated Total Consolidated
As at 31 Net Worth Profit/ (Loss) Comprehensive Other Comprehensive Total
March, 2017 Income Comprehensive Income Comprehensive
Income Income

Steel Authority of India 100 36,009.06 97.21% (2,833.24) 102.80% (353.60) 99.96% (3,186.84) 102.47%
Subsidiaries
SAIL Jagdishpur Power Plant Limited 100 0.02 0.00% (0.01) 0.00% - 0.00% (0.01) 0.00%
SAIL Refractory Company Limited 100 116.76 0.32% 21.01 -0.76% (0.67) 0.19% 20.34 -0.65%
SAIL Sindri Projects Limited 100 0.02 0.00% (0.01) 0.00% - 0.00% (0.01) 0.00%
Chhattisgarh Mega Steel Limited 74 0.03 0.00% - 0.00% - 0.00% - 0.00%
Joint-ventures
NTPC SAIL Power Company Ltd 50 986.76 2.66% 194.43 -7.05% (1.04) 0.29% 193.39 -6.22%
Bokaro Power Supply Co. Pvt. Ltd. 50 384.26 1.04% 39.27 -1.42% 0.25 -0.07% 39.52 -1.27%
Mjunction Services Limited 50 113.54 0.31% 18.87 -0.68% (0.12) 0.03% 18.75 -0.60%
SAIL Bansal Service Centre Ltd 40 0.50 0.00% (0.16) 0.01% 0.00 0.00% (0.16) 0.01%
Bhilai Jaypee Cement Limited 26 25.32 0.07% (17.87) 0.65% (0.08) 0.02% (17.95) 0.58%
S& T Mining Co. Pvt. Limited 50 (0.50) 0.00% (2.53) 0.09% - 0.00% (2.53) 0.08%

141
International Coal Ventures Private Ltd. 46.73 870.38 2.35% (31.39) 1.14% 1.52 -0.43% (29.87) 0.96%
SAIL-MOIL Ferro Alloys Private Ltd. 50 (1.67) 0.00% (0.19) 0.01% - 0.00% (0.19) 0.01%
SAIL SCI Shipping Pvt. Limited 50 0.07 0.00% 0.00 0.00% - 0.00% 0.00 0.00%
SAIL SCL Kerala Limited 49.26 (17.14) -0.05% (6.14) 0.22% - 0.00% (6.14) 0.20%
SAIL RITES Bengal Industry Pvt. Ltd. 50 14.83 0.04% (6.49) 0.24% - 0.00% (6.49) 0.21%
SAIL Kobe Iron India Pvt. Limited 50 0.26 0.00% - 0.00% - 0.00% - 0.00%
SAIL-BENGAL Alloy Castings Private Ltd. 50 (0.00) 0.00% (0.01) 0.00% - 0.00% (0.01) 0.00%
Prime Gold-SAIL JVC Limited 26 6.44 0.02% 1.07 -0.04% - 0.00% 1.07 -0.03%
VSL SAIL JVC Limited 26 1.58 0.00% - 0.00% - 0.00% - 0.00%
Abhinav SAIL JVC Limited 26 (0.03) 0.00% (0.02) 0.00% - 0.00% (0.02) 0.00%
NMDC SAIL Limited 49 0.02 0.00% (0.00) 0.00% - 0.00% (0.00) 0.00%
TMT SAL SAIL JV Limited 26 (0.00) 0.00% - 0.00% - 0.00% - 0.00%
SAL SAIL JVC Limited 26 (0.02) 0.00% (0.00) 0.00% - 0.00% (0.00) 0.00%
Bastar Railway Private Limited 21 0.49 0.00% (0.02) 0.00% - 0.00% (0.02) 0.00%
Associates 0.00%
AlmoraMagnesite Limited 20 1.01 0.00% 0.10 0.00% - 0.00% 0.10 0.00%
Non-controlling interest 0.01 - - -
Consolidation adjustments (1,469.70) -3.97% (132.87) 4.82% - (132.87) 4.27%
Grand total 37,042.27 (2,756.17) (353.75) (3,109.92)
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
45. DETAILS OF ASSETS PLEDGED
The carrying amounts of assets pledged as security for current and non-current borrowings are: (` crore)

st st
Particulars As at 31 March, 2018 As at 31 March, 2017
Current
Inventories and trade receivables (to the extent pledged) 2334.39 1552.09
Non Current
Plant & Machinery (movable assets)-Durgapur Steel Plant (to the extent pledged) 1148.00 1162.00
Plant & Machinery (movable assets)-Bokaro & Bhilai Steel Plant (to the extent pledged) 16403.26 2500.00
Land and Plant & Machinery (at Mouje-Wadej of city taluka, Dist Ahemadabad, Gujarat) - ISP 10295.00 13202.00

46. EFFECTIVE TAX RECONCILIATION

(` crore)

st
Particulars As at 31 As at 31st
March, 2018 March, 2017

Profit/(Loss) before tax (526.63) (4,715.69)

Domestic tax rate for PFS 34.94% 34.61%
Expected tax expense [A] (184.03) (1,632.01)
Adjustment for tax-exempt income/ non-deductible expenses (22.10) (10.71)
Adjustment for difference tax rate items (1.48) 0.47
Tax incentive on specific expenditure (16.09) (353.00)
Tax related to earlier years 36.56 43.64
Increase in Corporate tax rate (28.39) -
Others (29.70) (7.92)
Total adjustments [B] (61.20) (327.52)
Actual tax expense [C=A+B] (245.23) (1,959.52)
Tax expense comprises:
Current tax expense 7.06 30.64
Deferred tax credit (252.29) (1,990.16)
Tax expense recognized in Statement of profit and loss [D] (245.23) (1,959.52)

47.1 CONTINGENT LIABILITIES (` crore)

As at As at
31st March, 2018 31st March, 2017

In Respect of SaIL:
(i) Claims against the Company pending appellate/judicial decisions 22672.07 33182.59
(ii) Other claims against the Company not acknowledged as debt 3550.27 3243.98
(iii) Disputed income tax/service tax/other demand on joint venture company for which company may be contingently liable
under the joint venture agreement 34.76 32.89
(iv) Bills drawn on customers and discounted with banks. 68.83 37.38
(v) Price escalation claims by contractors/suppliers and claims by employees. 441.70 408.62
In Respect of Joint Ventures:
(i) Claims against the Company pending appellate/judicial decisions - 1.70
(ii) Other claims against the Company not acknowledged as debt 44.88 47.05

47.2 In respect of SAIL:

a) (i) The Nine Judges Constitutional Bench of Hon'ble Supreme Court, vide its judgment dated 11.11.2016, has upheld the constitutional validity of levy of Entry Tax Acts
enacted by the States and has laid down principles/tests for consideration. The respective regular Benches of the Apex Court would hear the matters as per laid down
principles. Pending decisions by the regular Benches of the Apex Court on levy of Entry Tax in the States of Chhattisgarh, Odisha, Uttar Pradesh, and Jharkhand, the Entry
Tax demands, under dispute, of `1092.28 crore, `241.00 crore, `92.23 crore and `5.15 crore respectively upto 31st March, 2018 aggregating to `1430.66 crore (including
a sum of `1092.28 crore, `352.16 crore, `92.23 crore and `5.15 aggregating to `1541.82 crore upto 31st March, 2017) have been treated as contingent liabilities.
(ii) Pending final decision by the Hon'ble Calcutta High Court, in the case of levy of Entry Tax in West Bengal, the disputed Entry Tax demands of `295.50 crore upto
31st March, 2018 (upto 31st March, 2017 `254.21 crore) have been treated as contingent liabilities.

142
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
b) Hon'ble Supreme Court dismissed the SLP by the Company in respect of dispute with Damodar Valley Corporation(DVC) related to provisional tariff petition of electricity
charges for 2009-14 vide order dated 18th January, 2017, keeping the question of law open. The Order of Central Electricity Regulatory Commission (CERC) dt.7/8/2013
related to Tariff of 2009-14 against Petition No.275/GT/2012 has been challenged before Appellate Tribunal for Electricity (APTEL) (Appeal No.18 of 2014) in which the
Company has also intervened and the order of APTEL is pending. The appeal filed by DVC pertaining to tariff of 2004-09 is yet to be decided by the Hon'ble Supreme Court
of India. As per legal opinion received by the Company, the decision of Hon'ble Supreme Court of India on determination of the tariff of 2004-09 may have an effect on the
subsequent periods. Pending final decision in this regard, the claim of DVC of ` 587.72 crore upto 31st March, 2018 ( upto 31.03.2017, ` 587.72) has been considered as
Contingent Liability and included in Note No. 47.1(i)(f) above. . Against the said claims, the entire amount has been paid to DVC and disclosed under Other Current Assets.
Further from 1st April, 2017 onwards full invoice value has been considered in the Statement of Profit & Loss.
47.3 Under the Jharkhand Mineral Area Development Authority (Amendment) Act, 2015 the State Government of Jharkhand has made a demand of `3374.46 crore upto
31st March, 2018 (upto 31st March, 2017 `3045.41 crore) towards "Market Fee" on transaction value of coal, iron and steel items. As the matter is sub-judice, the amount
has been disclosed as a Contingent Liability in Note No. 47.1(i)(e) above.
47.4 The Company pays royalty on iron ore on the basis of quantity removed from the leased area at the rates based on notification by the Ministry of Mines, Government of India
and the price published by India Bureau of Mines on a monthly basis for both iron ore lumps and fines separately. A circular was issued by the State Government of Odisha
regarding payment of royalty on fines at the rate of lumps on 07.09.2010 retrospectively effective from August 2009. The Government of India, vide circular dated
23.07.2012, directed the State Government of Odisha to withdraw the circular dated 07.09.2010. Accordingly, excess royalty for fines at the rate applicable for lumps, paid
in two Iron Ore Mines of the Company amounting to `143.54 crore, has been shown as Claims Recoverable. As the Company has disputed the matter with the Appropriate
Authorities, pending withdrawal of the circular of the State Government of Odisha, the amount of `143.54 crore ( As on 31st March, 2017 `144.34 crore) has been included
in the Contingent Liability, in Note No. 47.1(ii)(b) above.
47.5 In its judgement, the Central Administrative Tribunal (CAT), Kolkata has directed that Ministry of Steel shall consider the aspect of payment of arrears of revised perks and
allowances and take appropriate decision of payment of revised perks and allowances amounting to `325.13 crore to the executives for the period 26.11.2008 to
4.10.2009. Ministry of Steel intimated the matter to the Company on 7.12.2016. A stay petition in the matter has been filed on 22.12.2016 and is pending before the Hon'ble
Calcutta High Court. As the matter is sub-judice, the amount has been disclosed as a Contingent Liability in Note No. 47.1(v) above.
47.6 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 ` 334.45 crores, being the amount billed over and above MoU agreed prices, has not been account for in the accounts. Pending discussion and finalisation,
the above liability of `334.45 crores has been has been disclosed as a Contingent Liability in Note No. 47.1(ii)(d) above.
47.7 The Ministry of Environment & Forest and Climate Change (MoEF& CC) vide their letter No.- 11-599/ 2014-FC dated 1st April 2015 issued revised Guidelines for diversion
of Forest Land for non-forest purpose under the Forest (Conservation) Act, 1980 (FC Act). These revised Guidelines stipulated that in case of existing mining leases having
Forest Land (partially or fully), where approval for only a part of forest land has been obtained under the FC Act, the Central Government accorded general approval under
Section-2(iii) of the FC Act for the remaining area also to be Forest Land, subject to certain conditions, which includes realising Net Present Value (NPV) for the entire forest
land falling in the mining lease, in case NPV of such forest land has not already been realised.
In this matter, as per legal opinion obtained by the Company, Section 2 (iii) of FC Act, 1980 will not apply to Government Corporation and NPV is required to be paid only for
that limited area, which has been approved by MoEF& CC and in which mining activities are proposed to be done and not for the entire forest area. The matter of applicability
of NPV for total forest land has been challenged by the Company in Hon'ble High Court of Jharkhand. The Hon'ble Court, in its order, has directed to place the matter before
Division Bench of this Court.
During the year, the Company has received a demand of ` 96.28 crore from Office of the Principal Chief Conservator of Forest, Chhattisgarh against which writ petition has
been filed in Hon'ble high Court of Chhattisgarh.
47.8 Pursuant to the Hon'ble Supreme Court Judgment dated 2nd August, 2017 in the Common Cause matter regarding illegal mining, demand/Show cause notices have been
issued for recovery of the price of minerals produced without and beyond the environmental clearances under Section 21(5) of Mines and Mineral Development Regulation
Act, 1957, forest clearance under the Forest Conservation Act 1980, and towards excess production beyond consent to operate. The Company has challenged the
purported demand before the High Court of Jharkhand and Odisha and obtained stay on demand. As the matter is pending for final determination and considering the
implication of existing litigation, the Company has provided as detailed below:
(a) In respect of Iron Ore, by the Government of Odisha and Government of Jharkhand amounting to `212.85 crore and `1478.86 respectively (including interest). Based on
internal judgment, the Company has provided an amount of `333.45 crore during the year on estimated basis under exceptional item. Balance amount of `1358.26 crore
(including interest) has been treated as contingent liability in Note No. 47.1(i)(h) above.
(b) In respect of Limestone, by the Government of Jharkhand amounting to `20.28 crore (including interest). Based on internal judgment, the Company has provided an
amount of `7.27 crore during the year on estimated basis under exceptional item. Balance amount of `13.01 crore (including interest) has been treated as contingent
liability in Note No. 47.1(i)(h).
47.9 In respect of Coal, by the Government of Jharkhand amounting to `354.54 crore (including interest) during the year. Revision Application has been filed under Rule 55 (5)
of Mineral Concessions Rule, 1960 read with Section 30 of Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). The Revisional Authority, Ministry of
Coal, has granted Stay to the Company. Accordingly pending disposal the amount of `354.54 crore (including interest) has been treated as Contingent Liability in Note No.
47.1(i)(h).
48.1 Estimated amount of contracts remaining to be executed and not provided for (net of advances) are:
In respect of SAIL:
(` crore)
Particulars As at 31st March, 2018 As at 31st March, 2017
Capital commitments 10747.11 13580.65
Other commitments 1824.86 1532.38

In Respect of Joint Ventures:

(` crore)
Particulars As at 31st March, 2018 As at 31st March, 2017
Capital commitments 0.35 1.56

143
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
In respect of SAIL:
48.2 The amount due to Micro and Small Enterprises as defined in the The Micro, Small and Medium Enterprises Development Act, 2006 (as disclosed in Note No. 30 Trade
Payables) has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and
Small Enterprises as at 31st March, 2018 are as under:
No. Description As at 31st As at 31st
March, 2018 March, 2017

i. The principal amount remaining unpaid to suppliers as at the end of the Year. 48.22 38.12
ii. The amount of interest accrued during the year and remaining unpaid at the end of the Year. - -
iii. The amount of further interest remaining due and payable even in the succeeding years, until such date when the - -
interest dues as above are actually paid to the small enterprises, for the purpose of disallowance as a deductible
expenditure under section 23.
iv. The interest due thereon remaining unpaid to supplier as at the end of the Year. - -

For the Year ended

31st March, 2018 31st March, 2017
v. The amount of interest paid in terms of section 16, along with the amount of the payment made to the supplier - -
beyond the appointed day during the Year.
vi. The amount of interest due and payable for the period of delay in making payment (which have been paid but
beyond the appointed day during the year) but without adding the interest specified under this Act. - -

48.3 Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmations/reconciliations and consequential adjustment, if any.
Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made. However, management does not expect to have any
material financial impact of such pending confirmations/reconciliations.
48.4 The Block Land and Land Reforms Office, (Faridpur-Durgapur) and Andal, District: Paschim Bardhaman, Govt. Of West Bengal has raised demand of arrears of land revenue,
cess and interest for part of land of Durgapur Steel Plant henceforth referred to as 'Company'and its Township covering a period of past 40 years aggregating to `494.51
crore (previous year `nil crore) vide two demand notices dated 21.02.2018 and 08.03.2018 respectively.
The Company has contested the demands. Part of the land against which demand has been raised was acquired on behalf of the Central Government under Land Acquisition
Act and such acquisition vested in Union of India, while certain other parts of its lands were transferred by State Government to the Central Government and the Company
holds such lands on behalf of President of India. As per Article 285 of the Constitution of India no land revenue is payable on such lands. Moreover, Company had also paid
capitalised value of land revenue and as per judicial pronouncement, no land revenue is payable for lands for which capitalised value is paid. As such Company is of the
opinion that the demand raised against the Company is not tenable at all. Representation on that effect has already been made on 26th April, 2018 and 28th April, 2018.
49.1 Revenue from operations for the periods up to 30th June, 2017 includes excise duty of `1403.90 crore , which is discontinued effective 1st July, 2017 upon implementation
of Goods and Services Tax (GST). In accordance with 'Ind AS 18- Revenue', GST amount of `7864.70 crore is not included in Revenue from Operations. In view of the
aforesaid change, Revenue from Operations for the year ended on 31st March, 2018 are not comparable with the previous period.
49.2 Sales include sale to Government Agencies recognized on provisional contract prices during the year ended 31st March, 2018: `4802.50 crore (Previous Year : `3807.78
crore) and cumulatively up to 31st March, 2018 : `12271.05 crore (upto Previous Year : `18342.41 crore).
49.3 Keeping in view the affordability and financial sustainability clause in Office Memorandum dated 3rd August, 2017 and 24th November, 2017 issued by the Government of
India, Ministry of Heavy Industries & Public Enterprises, Department of Public Enterprises in respect of Pay Revision of employees:
(a) an all-inclusive provision towards salary revision of Board and below Board level executives, charged to 'Employee Benefit Expenses' and Expenditure During Construction
in earlier quarters amounting to `95.71 crore and `3.24 crore respectively has been written back during current quarter and `33.35 crore for the period from 1.1.2017 to
31.3.2017 has been written back during the current quarter and shown as 'Exceptional Item'.
(b) an all-inclusive provision towards salary and wage revision of Non-executive Employees charged to 'Employee Benefit Expenses' in earlier quarters amounting to `230.77
crore has been written back and `77.47 crore for the period from 1.1.2017 to 31.3.2017 has been written back during the current quarter and shown as 'Exceptional item'.
49.4 As per the Department of Public Enterprises (DPE) guideline, the Company is required to contribute up to 30% of Salary (Basic Pay + Dearness Allowance) in respect of
executive employees as superannuation benefits, which may include Contributory Provident Fund, Gratuity, Pension and Post-Superannuation Benefits. Accordingly the
Company has made provision for pension benefit for executive employees @ 9% of Salary w.e.f. 1st January, 2007 and 3% of Salary w.e.f. 1st January, 2017. Further,
pension benefit for non-executive employees has been provided @ 6% of Salary w.e.f. 1st January, 2012 and 2% of Salary w.e.f. 1st January, 2017.
The cumulative provision/liability towards pension benefit for executive & non-executive employees, amounting to `2494.52 crore (`126.59 crore during the year) and
`47.81 crore (`1.76 crore during the year) has been charged to `Employee Benefits Expense' and `Expenditure during Construction' respectively.
Based on DPE Guidelines on superannuation benefits which may include pension benefits to employees, Board of Directors of the Company keeping in view affordability and
financial sustainability to pay by the Company, revised pension benefit to 3% of Basic+ DA (as against 9% earlier decided) for Executives and 2% of Basic+ DA (as against
6% earlier decided) for Nonexecutives and accordingly:
(a) an amount of `170.02 crore provided from 1st April, 2015 to 31st December, 2016 in earlier years in respect of pension for Executives has been written back and credited
to 'Exceptional Item' during the current year (` nil during current quarter) .
(b) an amount of `288.14 crore provided from 1st April, 2015 to 31st December, 2016 in earlier years in respect of pension for Non-executives has been written back and
credited to 'Exceptional Items' during the current quarter.
49.5 Pursuant to Notification dated 29th March, 2018 issued by the Ministry of Labour and Employment, the Central Government has enhanced the ceiling of gratuity limit from
`0.10 crore to `0.20 crore w.e.f. 29.03.2018. Accordingly, the provision for gratuity as at 31st March 2018 has been made for `582.04 crore under Employee benefit
expenses, considering the enhanced ceiling based on the actuarial report.
49.6 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 `261.76 crore has been written back under exceptional item during the year for which such levy was held not applicable.

144
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
49.7 The research and development expenditure charged to Statement of Profit & Loss and allocated to Fixed Assets/Capital work-in-progress (Net), during the year, amount to
`314.71 crore (`261.60 crore) and `20.79 crore (`77.83 crore) respectively. The aggregate amount of revenue expenditure incurred on research and development is
shown in the respective head of accounts. The break-up of the amount is as under:
(` crore)
Head of Account For the year ended
31st March, 2018 31st March, 2017
Raw Materials 115.05 26.93
Employees Benefits Expense 97.95 88.87
Stores & Spares Consumed 11.40 9.44
Power & Fuel 21.61 4.80
Repairs & Maintenance 6.53 4.13
Depreciation and Amortisation Expense 8.54 6.42
Other Expenses 49.53 119.01
Finance Cost 4.10 2.00
Total 314.71 261.60

49.8 The Company reviews the carrying amount of its fixed assets on each balance sheet date for the purpose of ascertaining impairment, if any, by considering assets of entire
one plant as Cash Generating Unit (CGU). If any such indication exists, the assets recoverable amount is estimated, as higher of the net selling price and the value in use.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The net selling price of the CGU is determined once in every
three years.
On such review as on 31st March, 2018, no provision is required to be made during the year, as the value in use of assets of Bhilai Steel Plant, Durgapur Steel Plant, Rourkela
Steel Plant, Bokaro Steel Plant and IISCO Steel Plant, based on the present value of estimated future cash-flows expected to arise from the continuing use of an asset and
from its disposal at the end its useful life, is more than the carrying amount of the respective CGU.
No provision is required to be made during the year for Alloy Steels Plant, Salem Steel Plant and Visvesvaraya Iron and Steel Plant, as the net realisable value thereof,
assessed by an independent agency, as on 31st March, 2018 for Salem Steel Plant and as on 31st March, 2017 for Alloy Steels Plant and Visvesvaraya Iron & Steel Plant,
is more than the carrying amount of respective CGU.
49.9 (a) On the basis of Board of Directors of the Company approval dated 30th May 2017 for surrendering of three limestone mining leases under Bhawanathpur viz. Saraiya, Ghagra
& Goregaon, the intangible assets of `37.47 crore towards NPV as Mining Right have been written off along-with the corresponding provisions.
(b) The Board of Directors of the Company Board approved on 1st March 2018 for return of two Coal Blocks , Parbatpur and Sitanala, to Ministry of Coal. The Company has
taken provision of `18.59 crore for Sitanala and `113.05 crore for Parbatpur as exceptional expenses which appeared in CWIP.
(c) The Unit has given Bank Guarantee to Ministry of Coal as per the allotment agreement for two Coal Blocks of Parbatpur and Sitanala. After the approved on 1st March 2018
to return these two Coal Blocks to Ministry of Coal, the Company has provided Liability of `15.18 crore for Sitanala and `62.57 crore for Parbatpur Coal Block and shown
as exceptional expenses.
49.10 As per Section 135 of the Companies Act, 2013, the Company is required to spend, in every financial year, at least 2% of the average net profits of the Company made during
the three immediately preceding financial years in accordance with its Corporate Social Responsibility (CSR) Policy. Since, the Company reported average net loss during
the three immediately preceding financial years; no amount is required to be spent for the Financial Year 2017-18.
In Respect of SAIL:
However, against the budgeted amount of `26.00 (previous year `22.80 crore) , the Company has spent an amount of `25.70 crore (previous year `29.05 crore) on CSR
activities during the Financial Year 2017-18 under the following heads:
Particulars ` crore
Education 7.65
Healthcare 5.11
Livelihood Generation 3.54
Women Empowerment 0.75
Drinking Water 1.44
Sanitation 0.47
Sports 0.79
Art & Culture 1.13
Rural Development 2.07
Social Security 0.33
Environment Sustainability 2.20
Project Identification and Monitoring -
Capacity Building of Personnel 0.23
Total 25.70

145
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
In Respect of SRCL:
Particulars ` crore
Education 0.06
Healthcare 0.09
Women Empowerment 0.08
Sanitation 0.19
Art & Culture 0.20
Others 0.02
Total 0.64

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

2017-18 1.33 2.61

2016-17 2.32 2.15

2015-16 2.18 0.77

49.12 Salem Steel Plant (SSP) had obtained 12 Promotion Capital Goods (EPCG) authorization between 12th November 2008 to 30th November 2009 for import of capital goods
at concessional rate of customs duty under EPCG Scheme and completed the export obligation vide letter dated 13th February, 2018 received from the Office of Joint
Director General of Foreign Trade, Coimbatore.
49.13 Information on leases as per Indian Accounting Standards (Ind AS) 17 on `Leases':
(a) The Company has granted lease of properties to the employees and third parties for varying periods. The lease premium received up-front, after adjusting against book
value, is booked to other revenues in the year of lease. Renewal premium, ground rent and service charges of properties, pending for renewal, given on lease are treated as
income in the year of receipt.
b) Finance lease liabilities (refer note 24 and 31) are secured by the related assets held under finance lease. Future minimum finance lease payments and present value of
minimum lease payments of the respective years are as follows:
(` crore)
Minimum Lease Payment Due
Within 1 year 1-5 years After 5 years Total
st
31 March, 2018
Lease payment 261.85 916.58 2068.00 3246.43
Finance charge -156.70 -528.18 -1092.77 -1777.65
Net present value 105.15 388.40 975.23 1468.78
31st March, 2017
Lease payment 251.21 913.69 2255.38 3420.28
Finance charge -158.59 -556.78 -1233.81 -1949.18
Net present value 92.62 356.91 1021.58 1471.11

c) Description of major leasing arrangements

Power plant
The Company has accounted for a power plant as finance lease under Appendix C of Ind AS 17 by virtue of the power purchase agreement with the supplier. Under the terms
of the power purchase agreement, the Company shall continue to purchase power until the parties decide to terminate the agreement, which has been determined to be an
un-economic proposition considering the specialised nature and location of the asset.
Oxygen Plant
The Company has accounted for an oxygen plant as finance lease (or operating lease) under Appendix C of Ind AS 17 by virtue of the oxygen purchase agreement with the
supplier. The agreement to purchase oxygen is a 15 year fixed term agreement.
Mining land
The Company has accounted for leasehold lands for mining as finance leases by virtue of its rights under the lease agreement after considering the right/ economic
compulsion for renewal.
d) (i) In respect of assets taken on lease/rent: The Company has various operating leases for, office facilities, guest houses and residential premises for employees that are
renewable on a periodic basis. Rental expenses for these leases recognised in the Statement of Profit and Loss during the year is `18.91 crore (`14.16 crore).
(ii) As at the Balance Sheet date, the future Minimum lease payments under non-cancellable operating leases are:
(` crore)
As at 31st March, 2018 As at 31st March, 2017

Not later than one year 43.23 43.06

Later than I year and not later than 5 years 172.23 172.23
Later than 5 years 258.35 301.41

146
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
49.14 As per Government of India guidelines on payment of dividends, the Company is required to pay a minimum annual dividend of 30% of Profit After Tax or 5% of the Net-
worth, whichever is higher, subject to the maximum dividend permitted under the Companies Act, 2013 and other rules, unless lower dividend proposed to be paid is
justified after analysis of the various financial parameters of the Company. In case, the Company is not able to comply with the guidelines, specific exemption has to be
obtained from Department of Investment & Public Asset Management (DIPAM), Government of India. Keeping in view the adverse financial position of the Company due to
losses, the Company has been exempted from payment of dividend for the Financial Years 2015-16 and 2016-17. For the Financial year 2017-18, the Company has again
taken up with DIPAM for exemption from payment of dividend.
49.15 Contributions in cash and kind made for the period from the Financial Year 2006-07 to 2017-18 to Railway authorities for laying out railway line from Rajhara to Rowghat
would be recovered in cash at the rate of 7% per annum for 37 years on total contribution towards redemption of SAIL's contribution after commencement and fulfilment of
assured traffic from Rowghat mines. Management is of view that the criteria laid out in Memorandum of Understanding will be met and interest accrues from the date of
investment. The refund amount comprises principal and interest elements. Accordingly, the interest element has been computed and recognized as income during the year
amounting to `15.12 crore (till date `34.24 crore). As per the opinion of Expert Advisory Committee of The Institute of Chartered Accountants of India received during the
year such treatment of recognition on time proportion basis is in order as in view of Management, no significant uncertainty exists regarding collectability and measurability
of revenue.
49.16 The Cabinet Committee on Economic Affairs ( CCEA) in its meeting held on 27-10-2016 has "in-principle" decided for Strategic Disinvestment of Alloy Steels Plant (ASP),
Durgapur; Visvesvaraya Iron and Steel Plant (VISP), Bhadrawati, Salem Steel Plant (SSP), Salem. Further, in line with "in-principle" approval of Government of India, SAIL
Board in its meeting held on 9th February, 2017, approved the Strategic Disinvestment of ASP, VISP and SSP. The Company appointed various Advisors to carry out the
process. Preliminary Information Memorandum (PIM) /Expression of Interest (EoI) for ASP has been published in News papers on 14th February, 2018. PIMs/EoI of SSP
and VISP have been submitted to MoS (Ministry of Steel) for obtaining the clearance of Govt of India. "
49.17 Recent Accounting Pronouncements Standards issued but not yet effective:
In March, 2018, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115, 'Revenue
from Contracts with Customers', Appendix B to Ind AS 21, 'Foreign Currency Transaction and advance consideration and amendment to certain other standards. These
amendments are in line with recent amendments made by International Accounting Standards Board (IASB). These amendments are applicable to the Company from 1st
April, 2018. The Company will be adopting the amendments from their effective date.
(a) Ind AS 115, Revenue from contracts with Customers :
Ind AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. Ind AS 115 requires an entity to report information regarding nature, amount, timing and
uncertainty of revenue and cash flow arising from a contract with customers. The principle of Ind AS 115 is that an entity should recoginse revenue that demonstrate the
transfer of promised goods and services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or
services. The standard can be applied either retrospectively to each prior reporting period presented or can be applied retrospectively with recognition of cumulative effect
of contracts that are not completed contracts at the date of initial application of the Standard.
Based on the preliminary assessment performed by the Company, the impact of application of the Standard is not expected to be material.
(b) Appendix B to Ind AS 21, 'Foreign currency transaction and advance consideration' :
The Appendix clarifies that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the asset, expense or income (or part
of it) is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration
towards such asset, expense or income. If there are multiple payments or receipts in advance, that an entity must determine transaction date for each payment or receipts
of advance consideration.
The impact of the Appendix on the financial statements, as assessed by the Company is expected to be not material.
49.18 Based on materiality and comparability, in respect of temporarily discontinuation of operation of mines namely Barsua (w.e.f 17.05.2014), Bhawnathpur (w.e.f 29.04.2013)
and Punapani (w.e.f 01.03.2004.) due to environmental/forestry clearance issues, net expenditure during the year 2017-18, excluding depreciation, of ` 82.07 crore
(Previous Year ` 97.95 crore) has been included under Note No.41 'Other Expenses' in Statement of Profit and Loss (refer Note No 41). Head wise bifurcation is as under:
(` crore)
Account Head For the year ended 31st March, 2018 For the year ended 31st March, 2017

Salary and Wages 41.05 53.41

Stores and Spares 3.80 7.77

Power purchased 10.70 11.44

Repairs and Maintenance 8.36 6.84

Miscellaneous Expenses and Provisions 21.21 22.02

Total Expenditure 85.12 101.48

Less: Income 3.05 3.53

Net Expenditure 82.07 97.95

50.1 DEFINED BENEFIT SCHEMES

50.1.1 General Description of Defined Benefit Schemes:
Gratuity : Payable on separation @15 days pay for each completed year of service to eligible employees who render continuous service of 5 years or more (for service
beyond 30 years, one month's salary for every completed year of service beyond 30 years, in case of non-executives). Maximum amount of `20 lakhs for executives & non-
executives joined on or after 1st July, 2014 and without any monetary limit for other non-executives, has been considered for actuarial valuation.
Leave Encashment : Payable on superannuation to eligible employees who have accumulated earned and half pay leave, subject to maximum limit of 300 days combined
for earned leave and half pay leave. Encashment of accumulated earned leave is also allowed up to 30 days once in a financial year up to 18th November, 2015 and stopped
thereafter.
Provident Fund : 12% of Basic Pay Plus Dearness Allowance, contributed to the Provident Fund Trusts by the company.
Post Retirement Medical Benefits : Available to retired employees at company's hospitals and/or under the health insurance policy.
Post Retirement Settlement Benefits : Payable to retiring employees for settlement at their home town.
Long term service Award : Payable in kind on rendering minimum 25 years of service and also on superannuation.

147
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
In respect of SAIL:
50.1.2 Other disclosures, as required under Ind AS 19 on 'Employee Benefits', in respect of defined benefit obligations are :
(a) Reconciliation of Present Value of Defined Benefit Obligations* :
(` crore)
Sl. Particulars Gratuity Leave Post Post Long Term
No. Encashment Retirement Retirement Service
Medical Settlement Award
Benefits Benefit

i) Present Value of projected benefit obligations, 6153.06 2740.01 936.21 103.73 23.14
as at the beginning of the year. (5692.84) (2535.85) (872.63) (94.95) (21.02)

ii) Service Cost 288.50 124.27 - - 1.52

(375.36) (303.44) (-) (-) (1.60)

iii) Interest Cost 443.02 198.91 67.61 7.65 1.70

(381.98) (173.00) (60.24) (6.52) (1.43)

iv) Actuarial Gains(-) / Losses(+) -328.47 35.10 76.25 14.01 -1.03

(550.79) (28.06) (86.89) (11.68) (1.82)

v) Past Service Cost 582.04 - - - -

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

vi) Benefits Paid 798.19 312.56 116.44 8.73 2.40

(847.91) (300.34) (83.55) (8.92) (2.73)

vii) Present Value of projected benefit obligations as 6339.96 2785.73 963.63 116.66 22.93
at the end of the year. (i+ii+iii+iv+v-vi) (6153.06) (2740.01) (936.21) (103.73) (23.14)

(b) Reconciliation of Fair Value of Assets and Obligations

The Company has funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets is mainly based on the information given by the insurance
companies through whom the investments have been made by the Fund. The reconciliation of fair value of assets of the Gratuity Fund and defined benefit gratuity obligations is
as under:
(` crore)
Sl. No. Particulars 2017-18 2016-17

i) Fair Value of plan assets as at the beginning of the year 5836.33 5494.74

ii) Expected return on plan assets 23.11 94.53

iii) Actual Company's contribution 798.07 696.50

iv) Interest Income/Actuarial Gain/Loss 449.45 398.35

v) Benefits payments 798.19 847.91

vi) Fair value of plan assets as at the end of the year 6308.85 5836.33

vii) Present value of defined benefit obligation [50.1.2)(a)(vii)] 6339.96 6153.06

viii) Net liability recognised in the Balance sheet (vii)-(vi) * 31.11 316.85

* The Company does not expect to contribute any amount towards the expenses of Gratuity Fund during the year 2018-19, after considering the return on the investments.

The defined benefit obligations, other than gratuity, are unfunded.

148
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(c) Expenses recognised in the Statement of Profit & Loss for the Year:
(` crore)
Sl. Particulars Gratuity Leave Post Post Long Term
No. Encashment Retirement Retirement Service
Medical Settlement Award
Benefits Benefit

i) Service Cost 288.50 124.27 - - 1.52

(375.36) (303.44) (-) (-) (1.60)

ii) Interest Cost -6.34 198.91 67.61 7.65 1.70

(-16.37) (173.00) (60.24) (6.52) (1.43)

iii) Actuarial Gains -328.47 34.85 76.25 14.01 -1.03

(-)/Losses (550.79) (28.06) (86.89) (11.68) (1.82)

iv) Past Service Cost 582.04 - - - -

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

v) Expected Return on Plan Assets 23.11 - - - -

(93.25) ( - ) ( - ) ( - ) ( - )

vi) Total (i+ii+iii+iv-v) 512.60 358.02 143.86 21.66 2.19

(816.53) (504.50) (147.13) (18.20) (4.85)

vii) Employees' Benefits Expenses :

a) Charged to Profit & Loss Account (Note 39) 860.66 357.55 67.61 21.66 2.19
(356.51) (491.23) (58.34) ( - ) (4.85)

b) Charged to Expenditure During Construction 3.52 0.47 - (17.29) -

(Note 5.1) (-1.25) (3.56) (-) ( - )

c) Charged to OCI -351.58 - 76.25 - -

(456.26) ( - ) (88.79) ( - ) ( - )

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

(5.01) (9.71) ( - ) (0.91) ( - )

viii) Actual Return on Plan Assets 472.50

(491.63)

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

i) Gratuity -216.53 204.24

ii) Leave -116.72 110.59

iii) Post Retirement benefit -32.26 31.16

iv) Long Term Service Award -0.99 0.95

v) Retirement Travelling Allowance -4.80 4.69

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

i) Gratuity 175.57 -182.59

ii) Leave 117.21 -121.04

149
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(f) Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post-retirement medical benefits scheme.
(` crore)
Sl. Particulars One percentage point increase One percentage point decrease
No. in medical inflation rate in medical inflation rate

i) Post-retirement medical benefits -20.97 18.42

(g) Investments of Gratuity Trust

Particulars % of Investment
As at 31.03.2018 As at 31.03.2017

Insurance Investments 86.25 85.03

Central Government Securities 1.36 1.54

State Government Securities 4.24 4.77

PSU Bonds 8.12 8.63

Cash at Bank 0.03 0.03

Total 100.00 100.00

(h) Actuarial Assumptions

Sl. Description As at 31st March, 2018 As at 31st March, 2017
No.

i) Discount Rate (per annum) 7.70% 7.25%

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

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

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

v) Estimated Rate of Return on Plan Assets 7.70% 7.25%

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

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

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

(i) Maturity Profile of Defined Benefit Obligations

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

Upto 1 year 807.50

Between 1 to 2 years 828.15

Between 2 to 3 years 832.46

Between 3 to 4 years 839.42

Between 4 to 5 years 843.26

Between 5 to 10 years 4398.70

More than 10 years 25597.36

Total Undiscounted Payments related to Past Service 34146.84

Less: Discount for Interest 27806.88

Projected Benefit Obligation 6339.96

150
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
In Respect of SRCL:
50.1.2 Other disclosures, as required under Ind AS 19 on 'Employee Benefits', in respect of defined benefit obligations are :
(a) Reconciliation of Present Value of Defined Benefit Obligations* : (` crore)
Sl. Particulars Gratuity Leave Post
No. Encashment Retirement
Medical
Benefits

i) Present Value of projected benefit obligations, as at the beginning of the year. 10.43 1.28 0.06
ii) Service Cost 0.46 0.14 0.08
iii) Interest Cost 0.77 0.08 -
iv) Actuarial Gains(-) / Losses(+) -0.85 0.16 -
v) Past Service Cost - - -
vi) Benefits Paid - -0.40 -0.02
vii) Present Value of projected benefit obligations as at the end of the year. 10.81 1.26 0.12
(i+ii+iii+iv+v-vi)

(b) Reconciliation of Fair Value of Assets and Obligations

The Company has funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets is mainly based on the information given by the insurance
companies through whom the investments have been made by the Fund. The reconciliation of fair value of assets of the Gratuity Fund and defined benefit gratuity obligations is
as under:
(` crore)
Sl. No. Particulars 2017-18 2016-17

i) Fair Value of plan assets as at the beginning of the year 8.18 5.59

ii) Expected return on plan assets 0.61 0.41

iii) Actual Company's contribution 2.88 2.50

iv) Interest Income/Actuarial Gain/Loss -0.87 0.06

v) Benefits payments - -0.38

vi) Fair value of plan assets as at the end of the year 10.80 8.18

vii) Present value of defined benefit obligation [50.1.2)(a)(vii)] 10.81 10.43

viii) Net liability recognised in the Balance sheet (vii)-(vi) * 0.01 2.25

*The Company does not expect to contribute any amount towards the expenses of Gratuity Fund during the year 2018-19, after considering the return on the investments.

The defined benefit obligations, other than gratuity, are unfunded.

(c) Expenses recognised in the Statement of Profit & Loss for the Year : (` crore)
Sl. Particulars Gratuity Leave Post
No. Encashment Retirement
Medical
Benefits

i) Service Cost 0.46 0.14 0.08

ii) Interest Cost 0.17 0.08 -

iii) Actuarial Gains - 0.16 -

(-)/Losses

iv) Past Service Cost - - -

v) Expected Return on Plan Assets - - -

vi) Total (i+ii+iii+iv-v) 0.63 0.38 0.08

vii) Employees' Benefits Expenses :

a) Charged to Profit & Loss Account (Note 39) 0.62 0.38 0.08

b) Charged to Expenditure During Construction (Note 5.1) - - -

c) Charged to OCI 0.01 - -

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

viii) Actual Return on Plan Assets 0.86 - -

151
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
(d) Effect of half percentage point change in the Discount rate on Employees' Benefit schemes
(` crore)
Sl. Particulars 0.5 percentage point decrease 0.5 percentage point increase
No. in discount rate in discount rate

i) Gratuity 11.05 10.56

ii) Leave 1.29 1.23

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

i) Gratuity 10.60 11.02

ii) Leave 1.23 1.29

(f) Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post-retirement medical benefits scheme
(` crore)
Sl. Particulars One percentage point increase One percentage point decrease
No. in medical inflation rate in medical inflation rate

i) Insurance Investments 10.80 8.18

(g) Investments of Gratuity Trust

Particulars % of Investment
As at 31.03.2018 As at 31.03.2017

Insurance Investments 10.80 8.18

(h) Actuarial Assumptions

Sl. Description As at 31st March, 2018 As at 31st March, 2017
No.

i) Discount Rate (per annum) 7.70% 7.25%

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

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

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

v) Estimated Rate of Return on Plan Assets 7.70% 7.25%

vi) Salary Escalation Executives : 6.25% p.a. Executives : 6.25% p.a.

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

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

(i) Maturity Profile of Defined Benefit Obligations

(` crore)
Period As at 31st March, 2018
Upto 1 year 2.51
Between 1 to 2 years 1.60
Between 2 to 3 years 1.89
Between 3 to 4 years 1.23
Between 4 to 5 years 1.03
Between 5 to 10 years 3.73
More than 10 years 2.22
Total Undiscounted Payments related to Past Service 14.21
Less: Discount for Interest 3.40
Projected Benefit Obligation 10.81

152
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
51. GENERAL
51.1 Segment Reporting
i) Business Segments: The five Integrated Steel Plants and three Alloy Steel Plants, being manufacturing units, have been considered as primary business segments for
reporting under Ind AS108, Operating Segments' issued by Ministry of Corporate Affairs.
ii) In the opinion of the management, the captive mines are not a reportable business segment of the Company as per Para 27 of Ind AS108, Operating Segments, issued by
Ministry of Corporate Affairs. As captive mines are supplying raw materials to various plants, the Mines have been treated as cost centre for accounting purpose.
51.3 Disclosures of provisions required by Indian Accounting Standards (Ind AS)37 'Provisions, Contingent Liabilities and Contingent Assets:
Brief Description of Provisions :
Mines afforestation costs - Payable on renewal (including deemed renewal)/forest clearance of mining leases to Government authorities, towards afforestation cost at mines for
use of forest land for mining purposes.
Mines closure costs - Estimated liability towards closure of mines, to be incurred at the time of cessation of mining activities.
Overburden backlog removal costs - To be incurred towards removal of overburden backlog at mines over the future years.
In Respect of SAIL:
(` crore)
Movement of provisions Mines afforestation costs Mines closure costs Over burden removal costs Total

Balance as at 1st April, 2017 238.72 59.62 103.25 401.59

Additions during the Year - 13.19 24.27 37.46

Amounts utilised during the Year - (7.63) (7.56) (15.19)

Unused amount reversed during the Year - - 2.80 2.80

Balance as at 31st March, 2018 238.72 65.18 117.16 421.06

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

Balance as at 1st April, 2017 - 0.03 - -

Additions during the Year - - - -

Amounts utilised during the Year - - - -

Unused amount reversed during the Year - - - -

Balance as at 31st March, 2018 - 0.03 - -

153
Notes to Consolidated Financial Statements for the Year ended 31st March, 2018
52. OPERATING SEGMENT INFORMATION
(` crore)

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

REVENUE
- External Sales
Current Year ended 31st March 2018 15994.93 7168.64 12210.22 14039.97 6811.00 442.88 1344.11 142.18 147.07 58301.00
Previous Year ended 31st March 2017 14135.97 6209.54 9683.32 11796.81 4709.85 383.07 2015.72 169.15 138.51 49241.94
- Inter segment sales
Current Year ended 31st March 2018 299.80 184.88 217.67 211.33 73.02 206.18 12.70 18.36 3881.30 -5105.24 -
Previous Year ended 31st March 2017 639.75 173.36 273.76 234.89 49.44 224.61 9.52 24.78 3406.99 -5037.10 -
- Total Revenue from sale of products
Current Year ended 31st March 2018 16294.73 7353.52 12427.89 14251.30 6884.02 649.06 1356.81 160.54 4028.37 -5105.24 58301.00
Previous Year ended 31st March 2017 14775.72 6382.90 9957.08 12031.70 4759.29 607.68 2025.24 193.93 3545.50 -5037.10 49241.94
RESULT
- Operating Profit / (-) Loss before Interest
and Exceptional items
Current Year ended 31st March 2018 1240.52 -58.57 398.70 804.13 -329.50 -25.84 -118.24 -108.34 466.83 2269.69
Previous Year ended 31st March 2017 546.87 -724.42 -703.22 251.85 -1326.32 -1.78 -112.45 -114.88 213.22 -1971.13
- Finance cost
Current Year ended 31st March 2018 2822.75
Previous Year ended 31st March 2017 2527.82
- Exceptional items
Current Year ended 31st March 2018 -26.43
Previous Year ended 31st March 2017 216.74
- Tax expenses
Current Year ended 31st March 2018 -245.23
Previous Year ended 31st March 2017 -1959.52
- Profit / Loss (-) for the year
Current Year ended 31st March 2018 -281.40
Previous Year ended 31st March 2017 -2756.17
OTHER INFORMATION
- Segment assets
Current Year ended 31st March 2018 28756.68 6400.05 19484.61 14524.30 18770.09 518.32 2459.07 533.47 23994.38 115440.97
Previous Year ended 31st March 2017 27079.13 6006.72 18906.12 14437.15 18836.19 600.26 2554.16 678.16 18517.35 107615.24
- Segment Liabilities (including Long Term
Borrowing)
Current Year ended 31st March 2018 7409.47 2364.33 4017.17 3746.95 1922.70 207.46 383.28 79.88 58363.07 78494.31
Previous Year ended 31st March 2017 6872.38 2060.83 3821.43 3284.97 1577.12 232.30 372.66 151.41 52199.87 70572.97
- Capital expenditure
Current Year ended 31st March 2018 2481.46 296.50 1638.38 1362.65 599.44 2.89 7.82 2.15 388.63 6779.92
Previous Year ended 31st March 2017 1683.88 403.56 1212.44 1259.91 635.67 3.71 11.91 2.43 254.66 5468.17
- Depreciation
Current Year ended 31st March 2018 512.86 195.57 721.75 561.87 724.35 11.44 95.74 7.30 235.09 3065.97
Previous Year ended 31st March 2017 419.36 188.37 667.72 487.93 607.05 9.30 96.31 7.30 198.28 2681.62
- Non Cash expenses other than
Depreciation
Current Year ended 31st March 2018 19.00 11.34 15.26 56.00 36.79 2.00 14.17 2.81 58.83 216.20
Previous Year ended 31st March 2017 8.98 16.20 5.45 29.91 26.73 4.48 3.45 2.43 49.92 147.55

154
 Annexure-VI to the Board’s Report

Independent Auditors' Report on Consolidated Financial Statements

Comments Management’s Replies
TO THE MEMBERS OF STEEL AUTHORITY OF INDIA LIMITED
Report on the Consolidated Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying Consolidated Ind AS Financial Statements of Steel Authority of
India Limited (hereinafter referred to as "the Holding Company") and its subsidiaries (the Holding
Company and its subsidiaries together referred to as "the Group"), its associates and its jointly controlled
entities, comprising the Consolidated Balance Sheet as at 31st March, 2018, the Consolidated Statement
of Profit and Loss (including other comprehensive income), the Consolidated Cash Flow Statement,
the Consolidated Statement of Changes in Equity, for the year then ended, and a summary of the
significant accounting policies and other explanatory information (hereinafter referred to as "the
Consolidated Ind AS Financial Statements"
Management's Responsibility for the Consolidated Ind AS Financial Statements
The Holding Company's Board of Directors is responsible for the preparation of these Consolidated
Ind AS Financial Statements in terms of the requirements of the Companies Act, 2013 (hereinafter
referred to as "the Act") that give a true and fair view of the consolidated financial position, consolidated
financial performance (including other comprehensive income), consolidated cash flows and
consolidated statement of changes in equity of the Group including its Associates and Jointly controlled
entities in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with Companies (Indian
Accounting Standards) Rules, 2015 (as amended).
The respective Board of Directors of the companies included in the Group and of its associates and
jointly controlled entities are responsible for maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the Group and its associates and its jointly
controlled entities and for preventing and detecting frauds and other irregularities; the selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable
and prudent; and the design, implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Consolidated Ind AS Financial Statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error, which have
been used for the purpose of preparation of the Consolidated Ind AS Financial Statements by the
Directors of the Holding Company, as aforesaid.
Auditors' Responsibility
Our responsibility is to express an opinion on these Consolidated Ind AS Financial Statements based
on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the audit report under the provisions
of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10)
of the Act. Those Standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the Consolidated Ind AS Financial Statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures
in the Consolidated Ind AS Financial Statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the Consolidated Ind AS
Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Holding Company's preparation of the Consolidated
Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the Holding Company's
Board of Directors, as well as evaluating the overall presentation of the Consolidated Ind AS Financial
Statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors
in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate
to provide a basis for our qualified audit opinion on the Consolidated Ind AS Financial Statements.
Basis for Qualified Opinion
The Company's view is that the Pension Scheme was approved
I. As per 9th National Joint Committee on Steel (NJCS) Agreement dated 1st July 2014 (which is
by the Board in its Meeting held on 9th February, 2017, with a
valid upto 31st December 2016) signed by the Holding Company, contribution by the Holding
provision that the contribution towards Pension shall be based
Company towards proposed Pension Fund for non-executive employees was stipulated at 6% of
on the affordability, sustainability and capacity of the company,
Basic pay and D.A.. Pending revision of the said agreement and against reservation of
measured as a percentage of Profit Before Tax(PBT) to average
representatives of non-executive employees, Management of the Holding Company has unilaterally
Net-worth. This is in line with the Office Memorandum dated
reduced the rate of contribution towards the said Pension Fund to 2% of Basic pay and D.A. and
21.5.2014 issued by the Department of Public Enterprises. If
accordingly the Management, in the 4th quarter of the current year, has written back the provision

155
Independent Auditors' Report on Consolidated Financial Statements
Comments Management’s Replies

towards the said Pension Fund for non-executive employees for the period from 01.04.2015 to the percentage of PBT to average Net-worth is 8% or above, the
31.12.2016 to the extent of `288.14 crore (Refer Note no.49.4(b)). contribution towards Pension shall be limited to 6% of Basic
Pay plus DA for Non-executives. Further, if the percentage of
PBT to average Net-worth is lower than 8%, the amount of
contribution will be reduced proportionately. However, a minimum
Pension contribution is kept at the rate of 2% of Basic Pay plus
DA even in case of loss during a Financial Year. Accordingly, the
Board of Directors of the Company has approved the write back
of Pension contribution for the period from 1.4.2015 to
31.12.2016 in its meeting held on 30.05.2018.

II. Wage revision for non-executives is due since 01.01.2017. During the 4th quarter of the current The Company's view is that SAIL is a Government Company
year, Management of the Holding Company has reversed adhoc provision already made in last and is required to follow Government Guidelines for revising
year for the period from 01.01.2017 to 31.03.2017 amounting to `77.47 crore. Further the pay scales of its employees. The Depar tment of Public
Management of the Holding Company has also reversed provision created thereof for nine months Enterprises (DPE) issued Office Memorandum dated 24.11.2017
ended 31st December, 2017 amounting to `230.77 crore and also not made any provision thereof in this regard. The Guidelines inter-alia, state that Management
for the 4th quarter of the year. Pending negotiation with non-executive employees and as per the of PSEs would keep in view the affordability and financial
experience and past practice of earlier wage revisions for non-executive employees, adhoc sustainability of such wage revision and further where the five
provisions from 01.01.2017 to 31.03.2017 of `77.47 crore and from 01.04.2017 to 31.12.2017 year periodicity of Wage revision is followed, Management has
of `230.77 crore should not have been reversed and provision of `76.92 crore for the quarter to ensure that negotiated scales of pay for two successive wage
ended 31.03.2018 should have been made. The aggregate impact on Loss before Tax for the negotiations do not exceed the existing scales of pay of
Current year amounts to `385.16 crore. (Refer Note no. 49.3). executives/officers and non-unionized supervisors of respective
CPSEs for whom ten years periodicity is being followed. The
current pay scales of Non-executive employees in SAIL for some
of the levels after wage revision effective from 01.01.2012 for 5
years are already higher than the pay scales of certain Executive
employees. Accordingly, it has been approved by the Board of
Directors of the Company to withdraw the provision of wage
revision for Non-executive employees for the period from
01.01.2017 to 31.03.2017 and also for the nine months ended
31st December, 2017 and not to make any provision for the 4th
Quarter of Financial Year 2017-18.
III. The Holding Company has not provided for : In respect of item stated at (i), the Company's view is that the
(i) Demand for Entry tax in various states amounting to `1,726.16 crore as on 31st March, 2018 Nine Judges Bench of Hon'ble Supreme Court, vide its judgment
(Refer Note No. 47.2(a)) and dated 11th November, 2016, upheld the constitutional validity of
levy of Entry Tax by the States and has laid down principles/
(ii) Amount paid to Damodar Valley Corporation (DVC) in earlier years against bills raised for supply
tests on levy of Entry Tax Acts in various States. The respective
of power and retained as advance to DVC by a plant of Holding Company amounting to `587.72
regular benches of the Apex Court would hear the matters as
crore as on 31st March, 2018 (refer Note No.47.2(b));
per laid down principles. Pending decision by the regular benches
Had the impact of all the above qualifications been considered, Total Consolidated Comprehensive of the Apex Cour t on levy of entry tax in the States of
Loss (net of tax) for the year ended 31st March, 2018 would have been `2,037.94 crore against Chhattisgarh, Odisha, Uttar Pradesh, Jharkhand and in respect
reported Total Consolidated Comprehensive Loss (net of tax) of `94.60 crore, overstatement of other of the case pertaining to Calcutta High Court, the Entry Tax
equity as on 31st March, 2018 by `1,943.34 crore, understatement of current liabilities by `2,399.46 demands under dispute have been treated as contingent liabilities.
crore and understatement of asset by `456.12 crore.
In respect of item stated at (ii), the Company's view is that the
cases are sub-judice and pending for adjudication before the
various judicial authorities for a long time.
The above stated disputed demands, stated at III(i) and III(ii)
above, contested on valid and bonafide grounds, have been
treated as contingent liabilities as it is not probable that present
obligations exist as on 31st March, 2018. Therefore, there is no
adverse impact on loss for the year.

Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, and
based on the consideration of reports of the auditors on separate Financial Statements of the
subsidiaries, associates and Jointly controlled entities referred to below in the Other Matters paragraph,
except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph
above, the aforesaid Consolidated Ind AS Financial Statements give the information required by the
Act in the manner so required and, give a true and fair view in conformity with the accounting principles
generally accepted in India, of the consolidated state of affairs of the Group, its associates and Jointly
controlled entities as at 31st March, 2018, and their consolidated loss, consolidated total comprehensive
loss (net loss and other comprehensive income), their consolidated cash flows and consolidated
statement of changes in equity for the year ended on that date.

156
Independent Auditors' Report on Consolidated Financial Statements
Comments Management’s Replies

Emphasis of Matter
We draw attention to the following:
Gross sales of the Holding Company include sales to Government agencies for `4,802.50 crore for
the year ended 31st March, 2018 (cumulative upto 31st March, 2018 `12,271.05 crore) which is
recognized on provisional contract prices (Refer Note no. 49.2);
Our opinion is not modified in respect of this matter.
Other Matters
A. We did not audit the Financial Statements of subsidiaries specified in Annexure B included in the
Consolidated Ind AS Financial Results, whose Financial Statements reflect total assets of `160.27
crore as at 31st March, 2018, total revenues of `136.63 crore, total net profit after tax of `14.18 crore
and total comprehensive income of `14.17 crore for the year ended on that date, as considered in
their respective Standalone Ind AS Financial Statements.
The Statement also includes the Group's share of net profit of `284.86 crore and total comprehensive
income of `285.35 crore for the year ended 31st March, 2018, as considered in the Consolidated Ind
AS Financial Results, in respect of Jointly controlled entities specified in Annexure C, whose Financial
Statements are not audited by us.
These Financial Statements have been audited by other auditors whose reports have been furnished
to us by the Management and our opinion on Consolidated Ind AS Financial Results, in so far as it
relates to the amounts and disclosures included in respect of these subsidiaries, jointly controlled
entities and associates, is based solely on the reports of other auditors.
B. The Statement includes the Group's share of net profit of `33.36 crore and total comprehensive
income of `32.36 crore for the year ended 31st March, 2018, as considered in the Consolidated Ind
AS Financial Results, in respect of Joint Ventures and Associates specified in Annexure C, whose
Financial Statements are not audited by us. These unaudited Financial Statements/ Financial Information
have been furnished to us by the Management and our opinion on Statement is based solely on such
unaudited Financial Statements/ Financial Information. In our opinion and according to the information
given to us by the Management, these Financial Statements are not material to the Group.
C. In case of one subsidiary and four jointly controlled entities, the Financial Statements as at
31st March, 2018 are not available. The investment in these companies has been fully provided for as
at 31st March, 2018. In the absence of their Financial Statements as at 31st March, 2018, the total
assets, total revenue and total profit / loss of these entities have not been included in the Consolidated
Ind AS Financial Results.
Our report is not modified in respect of the matters specified in Other Matters.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit and on the consideration of the report of
the other auditors on separate Financial Statements and the other financial information of joint operations,
subsidiaries, associates and Jointly controlled entities companies incorporated in India, referred in the
Other Matters paragraph above, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit of the aforesaid Consolidated
Ind AS Financial Statements.
(b) In our opinion, except for the effect of the matters described in the Basis for Qualified Opinion
paragraph above, proper books of account as required by law relating to preparation of the
aforesaid Consolidated Ind AS Financial Statements have been kept so far as it appears from our
examination of those books and the reports of the other auditors..
(c) The reports on the accounts of the Holding Company, Subsidiaries, Associate and Jointly Controlled
Companies incorporated in India, audited under Section 143 (8) of the Act by other auditors have
been sent to us / the other auditors, as applicable, and have been properly dealt with in preparing
this report.
(d) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and the
Consolidated Cash Flow Statement and Consolidated Statement of changes in equity dealt with
by this Report are in agreement with the relevant books of account maintained for the purpose of
preparation of the Consolidated Ind AS Financial Statements.
(e) In our opinion, except for the effect of the matters described in the Basis for Qualified Opinion
paragraph above, the aforesaid Consolidated Ind AS Financial Statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
(f) The matters described in the Basis for Qualified Opinion paragraph above, in our opinion, may
not have an adverse effect on the functioning of the Group.
(g) As per notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate
Affairs, Government of India, Section 164(2) of the Act is not applicable to the Group.

157
Independent Auditors' Report on Consolidated Financial Statements
Comments Management’s Replies

(h) With respect to the adequacy of the internal financial controls over financial reporting and the
operating effectiveness of such controls, refer to our separate Report in "Annexure A", which is
based on the auditors' reports of the Holding Company, subsidiary companies, associate
companies and jointly controlled entities incorporated in India. Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Holding Company's/ subsidiary
companies / associate companies / jointly controlled companies incorporated in India, internal
financial controls over financial reporting, and
(i) With respect to the other matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. Except for the possible effect of the matter described in paragraph on the Basis of Qualified
Opinion above, the Consolidated Ind AS Financial Statements disclose the impact of pending
litigations on the consolidated financial position of the Group, its associate company and
jointly controlled entities (Refer Note 47.1).
ii. The Group, its associates and jointly controlled entities did not have any material foreseeable
losses on long-term contracts including derivative contracts.
iii. The Holding Company has not transferred to the Investor Education and Protection Fund an The Matured Deposits have already been claimed by the
amount of `120,75,460/-being Unclaimed Matured Deposits, which the Holding Company successors/relatives of the individuals but are pending for
is required to transfer to the said Fund; and submission of document of proof of legal heir by the claimants.
iv. Requirements as to disclosure of holding as well as dealings in Specified Bank Notes (SBN) Appropriate procedure is being followed for refunding the Matured
and reporting thereon are not applicable for the year. Deposits to the legal heirs.

For Singhi & Co. For V.K. Dhingra & Co. For and on behalf of Board of Directors
Chartered Accountants Chartered Accountants
Firm Registration No.: 302049E Firm Registration No.: 000250N

Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ Sanjay Jindal ] Sd/-
Partner Partner (Saraswati Prasad)
(M. No.050773) (M. No.087085) Chairman & Managing Director
For Chatterjee & Co. For A.K. Sabat & Co.
Chartered Accountants Chartered Accountants
Firm Registration No.:302114E Firm Registration No.:0321012E

Sd/- Sd/-
[ T.N. Ghosh ] [ A.K. Sabat]
Partner Partner
(M. No.050644) (M. No.030310)

Place : New Delhi Place : New Delhi

Dated : 30th May, 2018 Date : 3rd August, 2018

158
Annexure-A to the Independent Auditor's Report on Consolidated Financial Statement

Comments Management’s Replies

(Referred under 'Report on Other Legal and Regulatory Requirements' of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 ("the Act")
In conjunction with our audit of the Consolidated Financial Statements of the Group, its associates and
jointly controlled entities as of and for the year ended March 31, 2018, we have audited the internal
financial controls over financial reporting of STEEL AUTHORITY OF INDIA LIMITED (hereinafter referred
to as "the Holding Company") and its subsidiary companies, its associate companies and jointly
controlled entities, which are companies incorporated in India, as of that date.
Management's Responsibility for Internal Financial Controls
The Respective Board of Directors of the Holding Company, its subsidiaries, its associate and jointly
controlled companies, which are companies incorporated in India, are responsible for establishing
and maintaining internal financial controls based on the internal control over financial reporting criteria
established by the respective companies considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by
the Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence to company's policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial information,
as required under the Act.
Auditor's Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of
the Holding Company, its subsidiary companies, its associate company and jointly controlled entities
which are companies incorporated into India, based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance
Note") issued by the ICAI and the Standards on Auditing, issued by ICAI and deemed to be prescribed
under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both
issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting was established
and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other
auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and
appropriate to provide a basis for our audit opinion on the Company's internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A
company's internal financial control over financial reporting includes those policies and procedures
that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the Company are being made only in accordance with authorizations
of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the Company's assets that could have a material effect on the financial
statements.

159
Annexure-A to the Independent Auditor's Report on Consolidated Financial Statement

Comments Management’s Replies

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion, the Holding Company, its subsidiary companies, its associate companies and jointly controlled
companies, which are companies incorporated in India, have, in all material respects, an adequate internal
financial controls system over financial reporting, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial reporting were operating
effectively as at 31 March, 2018, based on the internal control over financial reporting criteria established by
the Company considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the
internal financial controls over financial reporting in so far as it relates to 3 subsidiary companies and 5 jointly
controlled companies, which are companies incorporated in India, is based on the corresponding reports of
the auditors of such companies incorporated in India.

For Singhi & Co. For V.K. Dhingra & Co.

Chartered Accountants Chartered Accountants
Firm Registration No.: 302049E Firm Registration No.: 000250N

Sd/- Sd/-
[ Pradeep Kumar Singhi ] [ Sanjay Jindal ]
Partner Partner
(M. No.050773) (M. No.087085)

For Chatterjee & Co. For A.K. Sabat & Co.

Chartered Accountants Chartered Accountants
Firm Registration No.:302114E Firm Registration No.:0321012E

Sd/- Sd/-
[ T.N. Ghosh ] [ A.K. Sabat]
Partner Partner
(M. No.050644) (M. No.030310)

Place : New Delhi

Dated : 30th May, 2018

Annexure B - List of subsidiaries Annexure C - List of Jointly Controlled Entities and Associates

Subsidiaries Jointly Controlled Entities / Associates Bhilai Jaypee Cement Limited

Audited Financial Statements Bokaro Power Supply Company (P) Limited
SAIL RITES Bengal Wagon Industry Pvt Ltd NMDC SAIL Limited
Audited Financial Statements SAIL SCI Shipping Private Limited Prime Gold- SAIL JVC
SAIL Sindri Projects Limited NTPC-SAIL Power Company Ltd SAIL-Bansal Service Centre Ltd
International Coal Ventures Pvt Limited S&T Mining Company Private Limited
SAIL - Jagdishpur Power Plant Limited
SAIL Bengal Alloy Casting Private Limited SAIL Kobe Iron India Private Limited
Chhatisgarh Mega Steel Limited SAIL MOIL Ferro Alloys Pvt Ltd
Unaudited Financial Statements / information SAIL SCL Kerala Limited
Abhinav SAIL JVC Limited SAL SAIL JVC Limited
Unaudited Financial Statements
Bastar Railway Private Limited TMT SAL SAIL JV Limited
SAIL Refractory Company Limited Almora Magnesite Ltd VSL-SAIL JVC Limited
Mjunction Services Ltd

160
 Annexure-VII to the Board's Report
Comments of C&AG
COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129(4)
OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF STEEL AUTHORITY OF INDIA LIMITED
FOR THE YEAR ENDED 31ST MARCH 2018.

The preparation of Consolidated Financial Statements of STEEL AUTHORITY OF INDIA LIMITED for the year ended 31st March, 2018 in accordance with the
financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the Company. The Statutory Auditors
appointed by the Comptroller and Auditor General of India under Section 139(5) read with section 129(4) of the Act are responsible for expressing opinion on the
financial statements under section 143 read with section 129(4) of the Act based on independent audit in accordance with the standards on auditing prescribed
under Section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 30th May, 2018.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 143(6)(a) read with Section 129(4) of the Act of
the consolidated financial statements of STEEL AUTHORITY OF INDIA LIMITED for the year ended 31st March 2018 which include the standalone financial
statements of Steel Authority of India Limited; its three1 subsidiaries, and eight2 joint venture companies all controlled by the government and/or government
companies. Supplementary audit under section 143(6)(a) of the Act of one subsidiary company 3, two such joint venture companies4 and one5 associate company
5 was not completed pending finalization of their accounts and/or audit as on dated. Under section 143(6)(a) of the Act, I am not required to conduct supplementary
audit of the financial statements of the ten companies6 not controlled by the government but included in the consolidated financial statements. Financial statements
of one subsidiary7 and one joint venture company8 controlled by the government and two companies9 not controlled by the government were not consolidated.
(Details are enclosed as Annexure-1). Supplementary audit of consolidated financial statements has been carried out independently without access to the working
papers of the Statutory Auditors and is limited primarily to inquiries of the Statutory Auditors and company personnel and a selective examination of some of the
accounting records.
On the basis of my audit, nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors Report.

For and on the behalf of the

Comptroller & Auditor General of India
Sd/-
Place : Ranchi (Indu Agrawal)
Date : 31st July, 2018 Principal Director of Commercial Audit
& Ex-Officio Member, Audit Board, Ranchi

1
SAIL Refractory Company Ltd., SAIL Jagdishpur Power Plant Ltd., and SAIL Sindri Projects Ltd.
2
NTPC-SAILPower Company Ltd., SAIL-Bengal Alloy Casting Pvt. Ltd., SAIL & MOIL Ferro Alloys Pvt. Ltd., SAIL-SCI Shipping Pvt. Ltd., International Coal Ventures Private Limited, SAIL
RITES Bengal Wagons Industry Pvt. Ltd., NMDC SAIL Ltd. and Baster Railway Pvt. Ltd.
3
Chhattisgarh Mega Steel Ltd.
4
Bokaro Power Supply Company Pvt. Ltd. and SAIL SCL Kerala Limited
5
Almora Magnesite Limited
6
Mjunction Services Limited, Bhilai Jaypee Cement Limited, S&T Mining Co. Pvt. Limited, SAIL Kobe Iron India Pvt. Limited, SAL SAIL JVC Limited, TMT SAL SAIL JVC Limited, Prime
Gold-SAIL JVC Limited, SAIL Bansal Service Centre Limited, Abhinav SAIL JVC Limited and VSL SAIL JVC Limited
7
IISCO Ujjain Pipe & Foundry Company Ltd.
8
North Bengal Dolomite Limited
9
Romelt SAIL (India) Ltd. and UEC SAIL Information Technology Limited

161
Annexure-1
Statement showing name of Subsidiary, Joint Venture and Associate Companies of SAIL and status of consolidation of accounts (2017-18)
Sl. Name of the related party and nature of relationship Whether accounts were Whether under the
No. consolidated jurisdiction of C&AG
Parent Company
Steel Authority of India Limited Yes Yes
Subsidiary Companies
1 SAIL- Jagdishpur Power Plant Limited Yes Yes
2 SAIL Refractory Company Limited Yes Yes
3 SAIL Sindri Projects Limited Yes Yes
4 Chhattisgarh Mega Steel Limited Yes Yes
5 IISCO Ujjain Pipe & Foundry Co. Limited No Yes
Joint Venture Companies
6 NTPC-SAIL Power Company Ltd. Yes Yes
7 Bokaro Power Supply Company Private Limited Yes Yes
8 SAIL - Bengal Alloy Castings Private Limited Yes Yes
9 SAIL & MOIL Ferro Alloys Private Limited Yes Yes
10 SAIL- SCI Shipping Private Limited Yes Yes
11 International Coal Ventures Private Limited Yes Yes
12 SAIL SCL Kerala Limited Yes Yes
13 SAIL-RITES Bengal Wagon Industry Private Limited Yes Yes
14 NMDC SAIL Limited Yes Yes
15 Bastar Railway Private Limited Yes Yes
16 North Bengal Dolomite Limited No Yes
17 Mjunction Services Limited Yes No
18 Bhilai Jaypee Cement Limited Yes No
19 S & T Mining Company Private Limited Yes No
20 SAIL Kobe Iron India Private Limited Yes No
21 SAL SAIL JVC Limited Yes No
22 TMT SAL SAIL JVC Limited Yes No
23 Prime Gold-SAIL JVC Limited Yes No
24 SAIL Bansal Service Centre Limited Yes No
25 Abhinav-SAIL JVC Limited Yes No
26 VSL SAIL JVC Limited Yes No
27 Romelt-SAIL (India) Limited No No
28 UEC-SAIL Information Technology Limited No No
Associate Company
29 Almora Magnesite Limited Yes Yes

162
 Annexure-VIII to the Board's Report

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

Sl. Particulars Details

No.
1. Name of the subsidiary SAIL Refractory SAIL Jagdishpur SAIL Sindri Chhattisgarh
Company Power Plant Projects Limited Mega Steel
Limited Limited Limited
2. Reporting period for the subsidiary concerned, Not applicable Not applicable Not applicable Not applicable
if different from the holding company's
reporting period
3. Reporting currency and Exchange rate as on the Not applicable Not applicable Not applicable Not applicable
last date of the relevant Financial year in the case of
foreign subsidiaries
` in crore
4. Share capital 0.10 0.05 0.05 0.05
5. Reserves & surplus 123.26 (-)0.03 (-) 0.03 (-)0.02
6. Total assets 160.20 0.02 0.02 0.03
7. Total Liabilities 36.84 * * *
8. Investments - - - -
9. Turnover 131.58 - - -
10. Profit before taxation 21.73 (-)0.01 - (-)0.01
11. Provision for taxation 7.53 - - -
12. Profit after taxation 14.20 (-)0.01 - (-)0.01
13. Proposed Dividend - - - -
14. % of shareholding 100 100 100 74

*Amount less than `50,000/-.

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

For and on behalf of Board of Directors

Sd/- Sd/- Sd/-

(M.C. Jain) (Anil Kumar Chaudhary) (P.K. Singh)
Company Secretary Director (Finance) Chairman
Place : New Delhi
Date : 30th May, 2018

163
 Part B: Associate Companies and Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
For the Year ended 31st March, 2018
Sl. Name of the Associate /Joint Ventures Latest Shares of Amount of Extent Description Revenue Net worth Profit/ Consider- Not
Audited Associate / Investment of of how from attributable (Loss) for ed in Consider-
Balance Joint in Holding there is operations to the year Consoli- ed in
Sheet Ventures Associates / (%) significant shareholding (` crore) dation Consoli-
Date held by Joint influence as per (` crore) dation
the Venture latest (` crore)
company (` crore) audited
on the Balance
year end Sheet
(` crore)

Joint Ventures 1 2 3 4 5 6 7 8 9 10
1 NTPC SAIL Power Company Ltd. 31-03-2018 490250050 490.25 50.00% Note-1 2184.21 331.72 165.86 165.86
2 Bokaro Power Supply Co. Pvt. Ltd. 31-03-2018 124025000 124.03 50.00% Note-1 817.12 79.28 39.64 39.64
3 Mjunction Services Limited 31-03-2018 4000000 4.00 50.00% Note-1 254.77 42.43 21.22 21.21
4 SAIL Bansal Service Centre Ltd * 31-03-2018 3200000 3.20 40.00% Note-1 0.75 (0.59) (0.24) (0.35)
5 Bhilai Jaypee Cement Limited * 31-03-2018 98718048 52.51 26.00% Note-1 55.42 (42.04) (10.93) (31.11)
6 S& T Mining Co. Pvt. Limited 31-03-2018 12941400 12.94 50.00% Note-1 (6.52) (5.53) (2.77) (2.76)
7 International Coal Ventures Private Limited 31-03-2018 593764286 693.76 48.72% Note-1 2067.68 21.28 10.18 11.10
8 SAIL-MOIL Ferro Alloys Private Limited 31-03-2018 100000 0.10 50.00% Note-1 (12.47) (9.14) (4.57) (4.57)
9 SAIL SCI Shipping Pvt. Limited 31-03-2018 100000 0.10 50.00% Note-1 0.13 (0.01) (0.01) 0.00
10 SAIL SCL Kerala Limited * 31-03-2018 13017801 18.75 49.26% Note-1 (52.23) (16.19) (7.98) (8.21)
11 SAIL RITES Bengal Wagaon Industry Pvt. Limited 31-03-2018 24000000 24.00 50.00% Note-1 25.52 (4.14) (2.07) (2.07)
12 SAIL Kobe Iron India Pvt. Limited* 31-03-2018 250000 0.25 50.00% Note-1 0.51 0.00 0.00 0.00
13 SAL SAIL JVC Limited * 31-03-2018 - - 26.00% Note-1 (0.09) (0.01) 0.00 (0.01)
14 TMT SAL SAIL JVC Limited * 31-03-2018 - - 26.00% Note-1 (0.01) 0.00 0.00 0.00
15 SAIL-BENGAL Alloy Castings Private Limited 31-03-2018 10000 0.01 50.00% Note-1 (0.02) (0.01) 0.00 (0.01)
16 Prime Gold-SAIL JVC Limited* 31-03-2018 4680000 4.68 26.00% Note-1 21.71 (2.87) (0.75) (2.12)
17 VSL SAIL JVC Limited * 31-03-2018 1300729 1.30 20.58% Note-1 5.67 (0.43) (0.09) (0.34)
18 Abhinav SAIL JVC Ltd* 31-03-2018 - - 26.00% Note-1 (0.15) (0.05) (0.01) (0.04)
19 Romelt SAIL (India) Ltd @ 63000 0.06 Note-1 Accounts - - - -
not available
20 UEC SAIL Information Technology Limited # - - Note-1 -do- - - - -
21 North Bengal Dolomite Ltd # 97900 0.98 Note-1 -do- - - - -
22 N.E. Steel & Galvanising Pvt. Limited # - - 49.00% Note-1 -do- - - - -
23 NMDC SAIL Limited* 31-03-2017 200000 0.02 49.00% 0.04 0.00 0.00 0.00
24 Bastar Railway Pvt Limited* 31-03-2017 10500 0.01 21.00% 1.10 (2.41) (0.51) (1.90)
Associate
1 Almora magnesite Limited* 31-03-2016 400000 0.40 20.00% Note-2 6.77 1.73 0.35 1.38

1. Voting power as per Joint Venture Agreement

2. Holds 20% share capital
* Based on the Unaudited Accounts for the Year 2017-18
@ Operations under suspension
# Companies under winding up/liquidation

For and on behalf of Board of Directors

Sd/- Sd/- Sd/-

(M.C. Jain) (Anil Kumar Chaudhary) (P.K.Singh)
Company Secretary Director (Finance) Chairman

Place : New Delhi

Date : 30th May, 2018

164
 Annexure-IX to the Board’s Report
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March, 2018
FORM No. MGT-9
[Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the
Companies (Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN : L27109DL1973GOI006454
ii) Registration Date : 24th January 1973
iii) Name of the Company : Steel Authority of India Limited
iv) Category / Sub-Category of the Company : Public company / Limited by Shares
v) Address of the Registered office and : Ispat Bhawan, Lodi Road, New Delhi-110003. Contact No. +91-11-24367481.
contact details Fax No. +91-11-24367015. Email: investor.relation@sailex.com
vi) Whether listed company : Yes
vii) Name, Address and Contact details of : MCS Share Transfer Agent Limited, F-65, Okhla Industrial Area, Phase- I,
Registrar and Transfer Agent New Delhi-110020. Phone No. +91-11-41406149. Fax No. +91-11-41709881.
Email: admin@mcsregistrars.com
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated:
Sl. No. Name and Description of main products / services NIC Code of the % to total turnover
Product/ Service of the company

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

and Electric Sheets, etc.) 330
2 Long Products (TMT Bars, Wire Rods, etc.) 38

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

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

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

Ispat Bhawan, Lodhi Road, New Delhi

2. SAIL Refractory Company Limited, U14200TZ2011GOI017357 SUBSIDIARY 100 2(87)

Salem Steel Plant, Salem

3. SAIL Sindri Projects Limited U27320JH2011GOI015168 SUBSIDIARY 100 2(87)

Chasnala - 828135
Jharkhand

4. Chhattisgarh Mega Steel Limited U27100CT2015GOI001627 SUBSIDIARY 74 2(87)

Bhilai Steel Plant, Ispat Bhawan, Bhilai, Chhattisgarh

5. IISCO Ujjain Pipe & Foundry Co. Limited U28113WB1964PLC026148 SUBSIDIARY 100 2(87)
(Under Liquidation)
50, Chowringhee Road, Kolkata-700071

6. Almora Magnesite Limited U26941UR1971PLC003453 ASSOCIATE 20 2(6)

Magnesite House, Ranidhara Road, Almora-263601

7. NTPC-SAIL Power Company Ltd., U74899DL1999PTC098274 JOINT VENTURE 50 2(6)

Core-3, 5th Floor, SCOPE Complex,
7, Institutional Area, Lodi Road, New Delhi-110003

8. Bokaro Power Supply Company Pvt. Ltd., U40300DL2001PTC112074 JOINT VENTURE 50 2(6)
Ispat Bhawan, Lodi Road, New Delhi-110003.

9. North Bengal Dolomite Limited U14109WB1980PLC033031 JOINT VENTURE 50 2(6)

28-B, Shakeshkpeare Sarani,
Neelamber", Flat No.10A, 10th Floor, Kolkata-700017

165
10. UEC SAIL Information Technology Ltd. (under liquidation) U74899DL1995PLC064072 JOINT VENTURE 40 2(6)
C/o I.M. Puri & Co., C-30. Chiragh Enclave,
New Delhi-110048.

11. Romelt-SAIL (India) Limited U74899DL1997PLC090025 JOINT VENTURE 15 2(6)

No.25/2, Madanpur, Khadar, Near Sunder Public School
Opp. F Block, New Delhi-110 076

12. mjunction Services Limited U00000WB2001PLC115841 JOINT VENTURE 50 2(6)

TATA Centre, 43, Jawaharlal Nehru Road,
Kolkata-700071.

13. SAIL-Bansal Service Centre .Limited, 12/2, Park Mansion U27310WB2000PLC092486 JOINT VENTURE 40 2(6)
57-A, Park Street, Kolkata-700 016.

14. Bhilai Jaypee Cement Ltd. U26940CT2007PLC020250 JOINT VENTURE 26 2(6)

JA House, 63, Basant Lok, Vasant Vihar,
New Delhi - 110057.

15. SAIL & MOIL Ferro Alloys Pvt. Ltd., U27101CT2008PTC020786 JOINT VENTURE 50 2(6)
Sector-1, Bhilai - 490 001.

16. S&T Mining Co. Pvt. Ltd U13100WB2008PTC129436 JOINT VENTURE 50 2(6)
Tata Centre, 43, Jawaharlal Nehru Road,
Kolkata - 700 071

17. International Coal Ventures Private Limited U10100DL2009PTC190448 JOINT VENTURE 48.72 2(6)
20th Floor, Scope Minar, Laxmi Nagar District Centre
Delhi - 110 092

18. SAIL SCI Shipping Private Limited, U61100WB2010PTC148428 JOINT VENTURE 50 2(6)
Shipping House, 13 Strand Road, Kolkata - 700 001

19. SAIL-SCL Kerala Limited U27104KL1969SGC002253 JOINT VENTURE 49.26 2(6)

P.B. No. 42, Feroke - 673 631, Kozhikode, Kerala

20. SAIL-RITES Bengal Wagon Industry Pvt. Ltd. U35200DL2010PTC211955 JOINT VENTURE 50 2(6)
Scope Minar, Laxmi Nagar, Delhi - 110092.

21. SAIL-Kobe Iron India Private Limited, U27100DL2012PTC236499 JOINT VENTURE 50 2(6)
Ispat Bhawan, Lodi Road, New Delhi

22. SAL-SAIL JVC Limited U28111DL2012PLC231225 JOINT VENTURE 26 2(6)

B-7, WHS Kirti Nagar, New Delhi

23. TMTSAL-SAIL JVC Limited U28113DL2012PLC231234 JOINT VENTURE 26 2(6)

B-7, WHS Kirti Nagar, New Delhi

24. SAIL- Bengal Alloy Castings Private Limited (SBACPL) U35122WB2013PTC190532 JOINT VENTURE 50 2(6)
22B, Raja Santosh Road, Kolkata - 700 027

25. VSL-SAIL JVC Limited U27106TG2012PLC083896 JOINT VENTURE 20.58 2(6)

Door No.2-51, Near Darga, Kardnur, Postpati
Patan Cheruvu Mandal, Hyderabad - 502 300

26. Prime Gold-SAIL JVC Limited U28113DL2012PLC245537 JOINT VENTURE 26 2(6)

5/2, Punjabi Bagh Extn., Club Road,
New Delhi - 110026.

27. Abinav-SAIL JVC Limited U27100DL2012PLC245749 JOINT VENTURE 26 2(6)

401, Mahaveer Ji Complex, LSC Rishab Vihar
Delhi - 110 092.

28. NMDC SAIL Limited U27320TG2016GOI109798 JOINT VENTURE 49 2(6)

10-3-311/A, Khanij Bhavan Castle Hills, Masab Tank,
Hyderabad, Hyderabad TG 500028 IN.

29. Bastar Railway Private Limited U74900CT2016PTC007251 JOINT VENTURE 21 2(6)

Global Exploration Centre, NMDC Building Geens Villey City,
Housing Board Colony Boriyakala Raipur
Raipur CT 492015 IN

166
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Shareholders during the Year

Demat Physical Total % Total Demat Physical Total % Total

No. of No. of
shares shares

A. Promoters

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

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

b) Central Govt 3097767449 - 3097767449 75.00 3097767449 - 3097767449 75.00 0.00

c) State Govt(s) - - - - - - - - -

d) Bodies Corp. - - - - - - - - -

e) Banks/FI - - - - - - - - -

f) Any other - - - - - - - - -

Sub Total (A)(1):- 3097767449 - 3097767449 75.00 3097767449 - 3097767449 75.00 0.00

2. Foreign

a) NRIs - Individuals - - - - - - - - -

b) Other - Individuals - - - - - - - - -

c) Bodies Corp. - - - - - - - - -

d) Banks / FI - - - - - - - - -

e) Any Other. - - - - - - - - -

Sub Total (A)(2):- - - - - - - - - -

Total shareholding 3097767449 - 3097767449 75.00 3097767449 - 3097767449 75.00 0.00

of Promoter (A) =
(A)(1)+(A)(2)

B. Public Shareholding

1. Institutions

a) Mutual Funds 51275023 127300 51402323 1.24 110886637 124800 111011437 2.69 1.45

b) Banks/FI 163134585 61976 163196561 3.95 138930829 59876 138990705 3.36 (-)0.59

c) Central Govt. - - - - - - - - -

d) State Govt.(s) - - - - - - - - -

e) Venture Capital Funds - - - - - - - - -

f) Insurance Companies 471423860 1900 471425760 11.41 417264778 1900 417266678 10.10 (-)1.31

g) FIIs 175934683 48526 175983209 4.26 174998847 41126 175039973 4.24 (-)0.02

h) Foreign Venture Capital - - - - - - - - -

Funds

i) Others (specify)IEPF - - - - 1731709 - 1731709 0.04 0.04

Sub-Total(B)(1): 861768151 239702 862007853 20.86 843812800 227702 844040502 20.43 (-)0.43

2. Non-Institutions

a) Bodies Corp. 18172250 70342 18242592 0.44 29693002 53342 29746344 0.72 0.28

i) Indian - - - - - - - - -

ii) Overseas - - - - - - - - -

b) Individuals

i)Individual Shareholders 104957731 5636489 110594220 2.68 101387379 3972860 105360239 2.55 (-)0.13
holding nominal share
capital upto `1 lakhs

167
 Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Shareholders during the Year

Demat Physical Total % Total Demat Physical Total % Total

No. of No. of
shares shares

ii) Individual Shareholders 18138783 112100 18250883 0.44 27350054 87100 27437154 0.66 0.22
holding nominal share
capital in excess of
` 1 lakhs

c) Other (specify)NBFC 11065 0 11065 0.00 1033155 - 1033155 0.02 0.02

i) Non Resident Indian 17530562 396500 17927062 0.43 17904363 396500 18300863 0.44 0.01

ii) Trust & Foundation 5403330 2800 5406130 0.13 6519248 2300 6521548 0.16 0.03

iii)Cooperative Societies 200400 0 200400 0.00 200400 - 200400 0.01 0.01

Sub-Total(B)(2) 164414121 6218231 170632352 4.13 184087601 4512102 188599703 4.57 0.44

Total Public 1026182272 6457933 1032640205 25.00 1027900401 4739804 1032640205 25.00 0.00
Shareholding (B)=
(B)(1)+(B)(2)

C. Shares held by 48435 69200 117635 0.00 48435 69200 117635 0.00 0.00
Custodian for GDRs &
ADRs

Grand Total 4123998156 6527133 4130525289 100.00 4125716285 4809004 4130525289 100.00 0.00
(A)+(B)+(C)

(ii) Shareholding of Promoters

Sl. No. Shareholder's Name Shareholding at the beginning of the year Share holding at the end of the year

No. of Shares % of total % of Shares No. of Shares % of total % of Shares % change in

Shares of the Pledged / Shares of the Pledged / share holding
company encumbered company encumbered during the
to total shares to total shares year

1 Govt. of India 3097767449 75.00 0 3097767449 75.00 0 -

Total 3097767449 75.00 0 3097767449 75.00 0 -

(iii) Change in Promoters' Shareholding (please specify, if there is no change)

Sl. No. Shareholding at the beginning of Cumulative Shareholding

the year during the year

No. of shares % of total No. of Shares % of total

Shares of the Shares of the
company company

1 Government of India 3097767449 75.00 3097767449 75.00

At the beginning of the year

Date wise Increase / Decrease in Promoters Share - - - -

holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer /
bonus/ sweat equity)

At the End of the year 3097767449 75.00 3097767449 75.00

168
 (iv) Shareholding Pattern of Top Ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Shareholding Cumulative Shareholding

during the year 2017-18

Sl. Folio No. Name No. of Shares at % of total Date Increase / Reason Shares % of total
No the Beginning shares of Decrease Shares of
(31-03-17) /End the Company in Share- the Company
of the Year holding
(31-03-18)
1 IN30081210000012 LIFE INSURANCE CORPORATION OF INDIA 441874667 10.70 31.03.2017
26.01.2018 -3358000 Sale 438516667 10.62
02.02.2018 -10881968 Sale 427634699 10.35
16.02.2018 -9602901 Sale 418031798 10.12
23.02.2018 -10713437 Sale 407318361 9.86
02.03.2018 -11867003 Sale 395451358 9.57
395451358 9.57 31.03.2018

2 IN30081210498007 LIC OF INDIA MARKET PLUS 1 GROWTH FUND 51099546 1.24 31.03.2017
51099546 1.24 31.03.2018 NIL NIL

3 IN30014210753517 KOTAK FUNDS - INDIA MIDCAP FUND 0 0.00 31.03.2017

12.01.2018 5969031 Purchase 5969031 0.14
19.01.2018 6117779 Purchase 12086810 0.29

169
26.01.2018 4150251 Purchase 16237061 0.39
02.02.2018 3005592 Purchase 19242653 0.47
09.02.2018 3250000 Purchase 22492653 0.54
16.02.2018 1721334 Purchase 24213987 0.59
23.02.2018 1326985 Purchase 25540972 0.62
02.03.2018 2535000 Purchase 28075972 0.68
09.03.2018 2089817 Purchase 30165789 0.73
30165789 0.73 31.03.2018

4 IN30081210501340 LIFE INSURANCE CORPORATION OF INDIA P & GS FUND 39886617 0.97 31.03.2017
26.01.2018 -1100000 Sale 38786617 0.94
02.02.2018 -2640000 Sale 36146617 0.88
16.02.2018 -3938136 Sale 32208481 0.78
23.02.2018 -755000 Sale 31453481 0.76
02.03.2018 -5600236 Sale 25853245 0.63
25853245 0.63 31.03.2018

5 IN30081210497730 LIC OF INDIA MARKET PLUS GROWTH FUND 17677583 0.43 31.03.2017
17677583 0.43 31.03.2018 NIL NIL
 Shareholding Cumulative Shareholding
during the year 2016-17

Sl. Folio No. Name No. of Shares at % of total Date Increase / Reason Shares % of total
No the Beginning shares of Decrease Shares of
(31-03-16) /end the Company in Share- the Company
of the Year holding
(31-03-17)
6 IN30343810016654 VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF VANG 0 0.00 31.03.2017
23.03.2018 16721322 Purchase 16721322 0.40
16643922 0.40 31.03.2018 -77400 Sale

7 IN30005410094202 POLUNIN DEVELOPING COUNTRIES FUND, LLC 0 0.00 31.03.2017

31.10.2017 6243683 Purchase 6243683 0.15
03.11.2018 1708306 Purchase 7951989 0.19
10.11.2017 5102227 Purchase 13054216 0.32
02.02.2018 221675 Purchase 13275891 0.32
09.03.2018 226745 Purchase 13502636 0.33
13502636 0.33 31.03.2018

8 IN30343810003257 VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 12316054 0.30 31.03.2017
30.06.2017 574970 Purchase 12891024 0.31
26.01.2018 341843 Purchase 13232867 0.32

170
13232867 0.32 31.03.2018

9 IN30343810003972 CAPITAL GROUP EMERGING MARKETS TOTAL OPPORTUNITIES (LUX)15631981 0.38 31.03.2017
09.06.2017 2282700 Sale 17914681 0.43
02.03.2018 -1712783 Sale 16201898 0.39
09.03.2018 -3753249 Sale 12448649 0.30
12448649 0.30 31.03.2018

10 1203280000374484 YUSUFFALI MUSALIAM VEETTIL ABDUL KADER 11900000 0.29 31.03.2017

11900000 0.29 31.03.2018 NIL NIL

11 IN30081210497789 LIC OF INDIA MONEY PLUS GROWTH FUND 11754806 0.28 31.03.2017
11754806 0.28 31.03.2018 NIL NIL

12 IN30012611241922 LIC OF INDIA PROFIT PLUS GROWTH FUND 11655668 0.28 31.03.2017
11655668 0.28 31.03.2018 NIL NIL

13 IN30005410009134 HDFC TRUSTEE COMPANY LIMITED - HDFC PRUDENCE FUND 0 0.00 31.03.2017
05.01.2018 2452000 Purchase 2452000 0.06
12.01.2018 1700000 Purchase 4152000 0.10
 Shareholding Cumulative Shareholding
during the year 2016-17

Sl. Folio No. Name No. of Shares at % of total Date Increase / Reason Shares % of total
No the Beginning shares of Decrease Shares of
(31-03-16) /end the Company in Share- the Company
of the Year holding
(31-03-17)
09.02.2018 4720000 Purchase 8872000 0.21
02.03.2018 2400000 Purchase 11272000 0.27
11272000 0.27 31.03.2018

14 IN30005410009118 HDFC TRUSTEE COMPANY LIMITED - HDFC TOP 200 FUND 10962415 0.27 31.03.2017
10962415 0.27 31.03.2018 NIL NIL

15 IN30012611218322 ICICI PRUDENTIAL BALANCED ADVANTAGE FUND 22192424 0.54 31.03.2017

31.10.2017 -7115936 Sale 15076488 0.37
03.11.2017 -518996 Sale 14557492 0.35
17.11.2017 -1500000 Sale 13057492 0.32
24.11.2017 -1740000 Sale 11317492 0.27
29.12.2017 -4704000 Sale 6613492 0.16

171
05.01.2018 -6613492 Sale
0 0.00 31.03.2018

16 IN30016710011470 VANGUARD EMERGING MARKETS STOCK INDEX FUND,

ASERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUND 18306191 0.44 31.03.2017
07.04.2017 178685 Purchase 18484876 0.45
0 0.00 31.03.2018

17 IN30005410013042 ACACIA PARTNERS, LP 15102193 0.37 31.03.2017

06.10.2017 -15102193 Sale 0 0.00
0 0.00 31.03.2018

18 IN30343810013442 STICHTING DEPOSITARY APG EMERGING MARKETS EQUITY POOL 14398000 0.35 31.03.2017
28.04.2017 -6876200 Sale 7521800 0.18
05.05.2017 -7521800 Sale 0 0.00
0 0.00 31.03.2018
(v) Shareholding of Directors and Key Managerial Personnel

Sl. Shareholding of each Directors and Shareholding at the beginning of the year Cumulative Shareholding during the year
No. each Key Managerial Personnel

1. Shri Anil Kumar Chaudhary, Director (Finance) No. of shares % of total shares of No. of shares % of total shares of
the Company the Company

At the beginning of the year 200 0.00 200 0.00

Date wise Increase / Decrease in Promoters Nil Nil Nil Nil

Shareholding during the year specifying the reasons
for increase /decrease (e.g. allotment / transfer /
bonus/ sweat equity etc.):

At the end of the year 200 0.00 200 0.00

Sl. Shareholding of each Directors and Shareholding at the beginning of the year Cumulative Shareholding during the year
No. each Key Managerial Personnel

2. Shri Atul Srivastava, Director (Personnel) No. of shares % of total shares of No. of shares % of total shares of
the Company the Company

At the beginning of the year 200 0.00 200 0.00

Date wise Increase / Decrease in Promoters Nil Nil Nil Nil

Shareholding during the year specifying the reasons
for increase /decrease (e.g. allotment / transfer /
bonus/ sweat equity etc.):

At the end of the year 200 0.00 200 0.00

Sl. Shareholding of Key Managerial Personnel Shareholding at the beginning Cumulative Shareholding
No. of the year during the year

1. Shri M.C Jain, Company Secretary No. of shares % of total shares of No. of shares % of total shares of
the Company the Company

At the beginning of the year 68 0.00 68 0.00

Date wise Increase / Decrease in Promoters Nil Nil Nil Nil

Shareholding during the year specifying the reasons
for increase /decrease (e.g. allotment / transfer / bonus/
sweat equity etc.):

At the end of the year 68 0.00 68 0.00

Note: All other Directors do not hold any shares of the Company at the beginning, during and at the end of the Financial Year 2017-18.

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(` crore)

Secured Loans Unsecured Deposits Total

excluding deposits Loans Indebtedness

Indebtedness at the beginning of the Financial Year

i) Principal Amount 20843.86 20551.79 - 41395.65
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 832.85 243.24 - 1076.09
Total (i+ii+iii) 21676.71 20795.03 - 42471.74
Change in Indebtedness during the Financial Year
- Addition 22206.29 45352.95 - 67559.24
- Reduction 8479.87 55066.45 - 63546.32
Net Change 13726.42 -9713.50 - 4012.92
Indebtedness at the end of the Financial Year
i) Principal Amount 34570.28 10838.29 - 45408.57
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 869.37 203.17 - 1072.54
Total (i+ii+iii) 35439.65 11041.46 - 46481.11

Note: The opening balances has been regrouped in accordance with India Accounting Standard (INDAS)

172
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl. Particulars of Name of MD/WTD/ Manager Total
No. Remuneration Amount
(`)
Shri Shri Shri Shri Shri Dr. Ms. Shri
P.K. Singh Anil Kumar G. Raman Kalyan Maity N. Soma Mondal Atul
Chaudhary Vishwakarma (Upto 28.02.18) Mohapatra Srivastava
(Upto (From
30.06.17) 12.03.18)

Chairman Director Director (P&BP) Director Director Director Director Director

(Finance) (Technical) (RM&L) (Personnel) (Commercial) (Personnel)
1. Gross salary
(a) Salary as per provisions 43,66,223 39,87,266 27,66,215 39,27,267 37,25,174 9,12,778 42,37,436 6,99,478 2,46,21,837
contained in section 17(1) of the
Income-tax Act, 1961
(b) Value of perquisites u/s 5,06,929 5,23,062 6,61,400 8,80,206 4,17,788 5,44,085 5,13,745 24,072 40,71,287
17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under - - - - - - - - -
section 17(3) Income- tax Act, 1961
2. Stock Option - - - - - - - -
3. Sweat Equity - - - - - - - -
4. Commission - - - - - - - -
- as % of profit
- others, specify
5. Others, specify - - - - - - - -
Total (A) 48,73,152 45,10,328 34,27,615 48,07,473 41,42,962 14,56,863 47,51,181 7,23,550 2,86,93,124
Ceiling as per the Act N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.

B. Remuneration to Other Directors:

Sl. Particulars of Remuneration Fee For attending Board/ Commission Others, Please Total Amount
No. Committee Meetings Specify

1. Independent Directors*

CA Parmod Bindal 8,20,000 - - 8,20,000

Sh. P.K. Dash (upto 03.10.2017) 4,20,000 - - 4,20,000

Mrs. Anshu Vaish 6,40,000 - - 6,40,000

Prof. Ashok Gupta 8,20,000 - - 8,20,000

Dr. Samar Singh 5,40,000 - - 5,40,000

Sh. Nilanjan Sanyal 9,80,000 - - 9,80,000

CA K.S. Chauhan(from 22.09.2017) 2,60,000 - - 2,60,000

Prof. N.K. Taneja (from 22.09.2017) 2,40,000 - - 2,40,000

Total(1) 47,20,000 - - 47,20,000

2. Other Non- Executive Directors**

Total (2) - - - -

Total (B)=(1+2) 47,20,000 - - 47,20,000

Total Managerial Remuneration

Ceiling as per the act ((@1% of profits N.A. N.A. N.A. N.A.
calculated under section 198 of the
Companies Act, 2013)

*Only sitting fee is paid to Independent Directors

**No sitting fee is paid to other Non-Executive Directors

173
C. Remuneration to Key Managerial Personnel Other Than MD/Manager/WTD
Sl. No. Particulars of Remuneration Shri. M. C Jain Total
Company Secretary

1. Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 25,95,742 25,95,742
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 3,70,071 3,70,071
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - -

2. Stock Option - -

3. Sweat Equity - -

4. Commission - -
- as % of profit
- others, specify…

5. Others, please specify - -

Total (A) 29,65,813 29,65,813

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

TYPE Section of Brief Description Details of Penalty/ Authority Appeal Made,
Companies Act Punishment / (RD/NCLT/Court) if any
Compounding of
Fees imposed

A. COMPANY

Penalty

Punishment

Compounding

B. DIRECTORS

Penalty NIL
Punishment

Compounding

C. DEFAULT

Penalty

Punishment

Compounding

174
 Annexure-X to the Board’s Report
Particulars of Loans, Guarantees or Investments in accordance with Section 186 of the Companies Act, 2013
i) Amount outstanding as at 31st March, 2018
Particulars Amount (` crore)
Loans given * 234.11
Investments made 1491.30
* `1.00 crore provided for.

ii) Investments made during the year ended 31st March, 2018
Name of the Entity Relation Amount Purpose for which the
(` crore) Investments are proposed
to be utilised
International Coal Ventures Pvt. Limited Joint Venture 100.00 Business Purpose
NMDC SAIL Limited Joint Venture 0.02 Business Purpose
Bastar Railway Pvt. Limited Joint Venture 0.01 Business Purpose
Chattisgarh Mega Steel Limited Subsidiary 0.04 Business Purpose

For and on behalf of the Board of Directors

Sd/-
(Saraswati Prasad)
Chairman & Managing Director
Place: New Delhi
Dated: 13th August, 2018

175
 Annexure-XI to the Board’s Report
Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings & Outgo
[Pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies(Accounts) Rules, 2014]

(A) Conservation of energy e. Plant specific overall power consumption - 715 kWh/tss.
i) Steps taken or impact on conservation of energy ii) Capital Investment on energy conservation equipments
Bhilai Steel Plant (BSP) A Capital expenditure of `77.38 crore, as detailed below, has been incurred during
a. Utilization of waste steam at 10 ata and 18 ata from CDCP boilers of COB-11 the Financial Year 2017-18:
as process steam from October 2017. Particulars ` crore
b. Best ever CDI rate of 44.6 kg/thm in Blast Furnaces (1-7).
Recovery of sensible heat of Coke by Installation of Coke 38.47
c. Lowest ever specific water consumption at 2.774 m3/tcs against previous Dry Quenching System in Coke Oven Battery #11 at ISP,
best of 2.779 m3/tcs in 2016-17. # 6 at RSP, #11 at BSP
d. Total coke rate (on dry basis) at Blast Furnaces (1-7) has reduced to 491.7
Bell Less Top Charging System in Blast Furnace # 3 of DSP 0.08
kg/thm in 2017-18 as compared to 506.5 kg/thm in 2016-17.
e. Total fuel rate (on dry basis) at Blast Furnaces (1-7) has reduced to 559.3 kg/ Top Pressure Recovery Turbine System at Blast Furnace # 5 3.19
thm in 2017-18 as compared to 563.1 kg/thm in 2016-17. of ISP
f. Specific LD gas recovery, in SMS-2, has improved to 47.83 cum/tcs as Coal Dust Injection System in Blast Furnace #5 at ISP, #4 0.23
compared to 40.77 cum/tcs in 2016-17. at RSP (usage of auxiliary fuel to reduce Coke charging)
g. VVVF drive installed in ladle drier no. 5, 6, 7 & 8 in ladle preparation bay of Installation of energy efficient Walking Beam Type Furnace 21.42
SMS-2. at BSP, DSP, RSP, BSL & ISP
h. Optimization of contract demand with Chhattisgarh State Power Distribution Torpedo Ladle for Hot Metal handling at BSP, RSP & ISP 4.22
Company Limited (CSPDCL) by reduction from 225 MVA to 200 MVA.
Cast House Slag Granulation System at BSL 9.77
i. Plant specific overall energy consumption - 6.58 Gcal/tcs.
j. Plant specific overall power consumption - 534 kWh/tss. Total 77.38
Durgapur Steel Plant (DSP) (B) Technology absorption
a. Lowest ever Blast Furnace coke rate of 474.2 kg/thm. i) Efforts made towards technology absorption
b. Stoppage of idle running of three ID Fans of BOF converters. Research and Development Centre for Iron & Steel(RDCIS) is the Corporate R&D
c. Best ever production through caster route (96.6%). Unit of SAIL. Over the years, RDCIS has earned credentials of being an R&D Centre
d. Replacement of CBM with CO Gas in gas mixing station for NDP and MSM. of international repute in the field of ferrous metallurgy. The major thrust of RDCIS
is to plan, demonstrate and implement multi-disciplinary R&D programmes in SAIL
e. Achieved lowest ever specific boiler coal consumption at 11.7 kg/t of steam.
Plants to improve their key performance indices related to quality, productivity and
f. Achieved lowest ever yearly specific energy consumption at 6.19 Gcal/tcs. yield. RDCIS works with steel Plants and Central Marketing Organisation of the
g. Plant specific overall power consumption - 390.1 kWh/tss. Company to reduce product cost, develop value added market centric products
Rourkela Steel Plant (RSP) and demonstrate the application of SAIL products amongst the customers. Specific
areas in which R&D activities were carried out by the Company in 2017-18 are as
a. Increased power generation from BPTG to 2.20MW resulting in reduced import
under:
power from grid.
a) Process Developments
b. Reduction in coke consumption at BF from 418 kg/thm to 410 kg/thm.
Raw Materials
c. Hot slab charging in HSM furnace.
• Process up-gradation in slime beneficiation unit at CSW Plant, Dalli Mines,
d. Plant specific energy consumption - 6.33 Gcal/tcs. BSP
e. Plant specific overall power consumption - 477 kWh/tss. Coke Making
Bokaro Steel Plant (BSL) • Improvement in coke quality by optimization of operating parameters, BSL
a. Commissioning of Battery #7, thereby improving CO gas yield. • Development of an advanced process control system for COB #3 & 4 , BSL
b. Commissioning of acid plant with waste heat steam generation facilities. Agglomeration
c. Revival of cooling towers in BRP to increase the tar yield. • Improvement in performance of M/c # 2 & 3 of SP#2 through improvement
d. Replacement of 200 kW motor at quenching tower #4 with energy efficient of under-grate suction, BSP
motor. • Improvement in performance of mixer tools of intensive Sinter Mixer of Machine
#2 of SP-III, BSP
e. Full repair of 02 nos. of pits along with recuperators and partial repair of 04
nos. of soaking pits to reduce wastage of fuel. Blast Furnaces
f. Commissioning of new ID fan no-1 with VFD in SMS-II. • Introduction of coated tuyere in BF # 4, RSP
• Blast Furnace slag characterization for BF #5, ISP
g. Liquidation of 115 nos. of steam leakages.
Steel Making, Casting and Refractory
h. Plant specific overall energy consumption - 6.68 Gcal/tcs.
• Use of alternate coolant in BOF at SMS, DSP.
i. Plant specific overall power consumption - 459 kwh/tss.
• Development of process technology for low Si (<0.030% ) steels, BSL.
IISCO Steel Plant (ISP)
• Improvement in cast quality of slabs from Caster #1 & 2 of SMS-II, RSP.
a. Increase in • Development of alternate quality refractory for improvement in performance
• Coke oven gas yield to 339 Nm 3/tdc as against 323 Nm 3/tdc in of preheating zone hearth of reheating furnace of Merchant Mill, DSP.
2016-17. • Development of refractory plastic mass for RHF, SRU.
• BOF gas yield to 87 Nm3/tcs as against 81 Nm3/tcs in 2016-17. • Development of tundish spray mass, SRCL.
• Power generation from Top-pressure Recovery Turbine (TRT) to 7.81 Rolling Mills
MW, as against 7.52 MW in 2016-17. • Introduction of die lubrication system at Wheel & Axle Shop, DSP.
• Coal Dust Injection (CDI) rate at BF #5 to 97 kg/thm, as against 62 kg/ • Reduction of cobble generation at HSM, RSP.
thm in 2016-17. • Improvement in surface quality of CR coils at CRM, RSP.
b. Decrease in coke rate at BF#5 to 442 kg/thm, as against 479 kg/thm in • Study of ridge defect in CR coils produced through HSM-CRM # 3 route,
2016-17. BSL.
c. Installation of LED based lightings in different areas of the plant resulting in • Implementation of an information system for streamlining of inventory at CRM
energy savings of 11 MWh/annum. 1 & 2 complex, BSL.
d. Achieved lowest ever yearly specific energy consumption at 6.484 Gcal/tcs. • Improvement in surface quality of CR Coils at CRM-III, BSL.

176
 Energy Conservation and Environment
S.No. Product Details Plant Application
• Improving suspension-dissolution efficiency of scrubber-clarifier-thickener
circuit at BOF, DSP. 1 ASTM A572 Gr 50 (Type 1) BSL Structurals
• Design improvement of combustion system of oxidizing furnace of Galvanising 2 EN 10130 DC 01 CR Coils BSL Cold forming for
line # 1 of CRM, RSP. general engineering
• Electrical energy conservation through emulsion flow control in TCM #2, 3 High Strength IS 15914 Gr 2.2 mm BSL LPG Cylinders
CRM, BSL. Coils
b) Laboratory based work
• Development of Texture in CRNO Steel, RDCIS. 4 SAIL HT-700 HR Coils BSL Tipper-body
• To study the effect of microlithotype distribution on coke quality, RDCIS. 5 API X-70 PSL-2 Grade Plates RSP Gas Pipelines
• Development of nano structured steels, RDCIS. (up to 23.8 mm)
• Exploring use of air cooled BF slag in construction of rigid concrete pavement in 6 Customized IS 2062 E 250 C/ RSP Chenab Bridge
RDCIS complex, RDCIS. E 410 C Plates (54 J at -20, ASTM
• Designing of heat transfer laboratory to simulate secondary cooling of continuous Grain Size 8)
caster, RDCIS.
7 Boiler Grade IS 2002 Gr3 Plates RSP Pressure Vessels &
• Studies on effect of membrane processes on quality improvement of biologically Boilers
treated discharge water for in-plant closed loop recycling, RDCIS.
• Study the effect of CaO, FeO, MgO, MnO, SiO2 and Al2O3 contents of slag on 8 SAILARM Q&T Plates (ASP-RSP RSP Defense
dephosphorisation of steel, RDCIS. Route)
• Correlative investigation of Polycyclic Aromatic Hydrocarbons (PAHs) with select 9 Al-killed blooms for IS 2062 E 410 DSP TLT Segment
process parameters in coke oven effluent of integrated steel plants, RDCIS. 10 IS 2062 E 350 BR / B0 WPB DSP Structurals
• Development of a coupled abiotic-biotic process for improved treatment and 160 x 4.5 / 6 mm
recyclability of organic waste water generated in an Integrated Steel Plant, RDCIS.
• Development of press hardening steel with crash resistant material properties by 11 IS 2062 E 410 BR / B0 WPB DSP Structurals
Nb microalloying, RDCIS . 160 x 4.5 / 6 mm
• Development of a laboratory for industrial robotics, RDCIS. 12 IS 2879 EWNR Wire Rod ISP Electrode
• Computerisation of HR functions and its integration with Finance software, RDCIS. 13 SAE 1008 Wire Rod ISP Wire Drawing
• Development of software for bank guarantee, budget control, estate dues, invoicing
14 BS 4449 TMT Bar ISP Construction
for external earning & PF functions and its integration with Finance, RDCIS.
c) Product Development & Application 15 IS 2062 E 350 NPB and Angles ISP Structurals
RDCIS, through continuous technological inputs, has been helping the Company in 16 IS 2062 E 410 NPB ISP Structurals
producing value added steel products at a competitive price. Several new products,
particularly special steels, having superior product quality attributes have been 17 ISH 5986 Gr. 590R 12 mm Plates BSP Railway Wagons
developed and commercialized for meeting stringent application requirement of 18 Non - microalloyed E 350 C Gr. Plates BSP Structurals
various market segments. Principle of cost effective alloy design and optimization
19 IS 2062 E 250 B0 Si-killed Channels BSP Construction
of process parameters were the prime consideration for development of the new
market oriented products. During the year 2017-18, the following 21 nos. of products 20 HSFQ 450 Grade 10 / 12 mm Plates BSP Auto
have been developed. Out of these, 12 products have been developed using the 21 Seismic Resistant (IS 15962) Channels BSP Construction
newly commissioned production facilities viz., CRM III (BSL), NPM (RSP), MSM
(DSP), WRM (ISP), BRM (ISP) and USM (ISP).

(ii) Benefits derived from key projects in 2017-18:

• Process Area

Project Title Benefits Derived

Improvement in performance of machine # 1 & 3 of SP # 2, BSP through • Side leakages through track sealing have reduced drastically which is also indicated by
improvement of under-grate suction. reduction in suction loss of under grate to wind leg segment, resulting increase of air
filtration velocity from 0.2 m/sec to 0.263 m/sec.
• Average wind main suction increased from 382 to 392 mmwc.
• DTI of sinter has been improved from 84 to 88%.
• Productivity of sinter machine-1 & 3 increased by 2%.
Waste heat recovery from sinter cooler for jot water generation at SP-III, BSP. • The hot water is used for effective granulation of sinter-mix in mixing drum, which resulted
into raised mix temperature.
• Moisture re-condensation reaction is hence suppressed and resultantly sinter machine
productivity has improved.
Improvement in performance of reheating furnaces by enhancing the life of • Life of skid pipe insulation improved from around 3 months to more than 15 months (still
skid pipe insulation in Rail & Structural Mill, BSP. in operation).
Development of High Toughness Corrosion Resistant (HTCR) Rails, BSP. • Developed a new grade of rail with improved mechanical properties suitable for higher axle
load and enhanced durability.
Blowing-in burden for BF # 4, DSP. • New Blowing-in burden was designed & charged with dolomite in the burden. Furnace became
stable within three days (80 % of rated capacity) and achieved the normal production level
within seven days after capital repair.
Use of alternate coolants in BOF at SMS,DSP. • Process technology established for use of iron ore (~ 18 kg/tcs) and sinter (3t/heat) as
replacement of scrap.
Introduction of die lubrication system at wheel and axle plant, DSP. • Improvement in die life and wheel quality through uniform lubrication of dies.
Introduction of Coated Tuyeres in BF # 4, RSP. • Reduction of Temperature Difference of cooling water for installed coated tuyeres are varying
from 1.0 to 2.0oC (about 15% of base value) and reduction in heat loss through tuyeres is
about 15000 kcal/hr/tuy (15% of base value).
Improvement in cast quality of slabs from Caster 1 & 2 of SMS-II, RSP. • Technological intervention in secondary cooling and mould oscillation lead to reduction in
incidences of edge crack from 11.7% (May'16 to Sept '16) to 3.32% (Oct'16 to Feb '18).

177
 Project Title Benefits Derived

Reduction of cobble generation at HSM, RSP. • Reduction in cobble generation from 0.47% (2015-16) to 0.25% (2017-18).
Improvement in surface quality of CR coils at CRM, RSP. • Reduction in diversion due to black patch from 12% (2015-16) to 7% (2016-17).
Improvement in Coke Quality by Optimization of Operating Parameters, BSL. • M10 (Micum indices) improved from 9.6 to 9.4.
Process Technology for Low Si (<0.030% ) Steels, BSL. • Si reversal in tundish has been controlled to < 0.002% in tundish as compared to ~0.005%
in normal condition.
Improvement in surface quality of CR coils at CRM-III, BSL. • Reduction in diversion on account of surface defects (black patch, iron particle, rusting)
from 30% (2015-16) to 3% (2017-18).
Study of ridge defect in CR coils produced through HSM-CRM-III route, BSL. • Reduction of diversion due to ridge defect by 50% (2015-16).
Development of an advanced process control system for Coke Oven • Reduction in specific heat consumption due to accurate heating control from 0.7317 to
Battery # 3 & 4, BSL. 0.673 Gcal/TDCC.
Electrical Energy Conservation through Emulsion Flow Control in Tandem • Electrical Energy saving of 16.2 kWh/coil/day.
Mill # 2, CRM, BSL.
• Reduction mechanical delays by 66%.
• Reduction in motor failure by 83%.
Blast Furnace Slag Characterization for BF# 5, ISP. • Slag samples were collected and their viscosity was measured using high temperature
viscometer at different temperature levels with different compositions. Optimum slag regime
was recommended to take care of high alumina in BF Slag.
Process Technology for Production of Special Quality Steels, ISP. • Steel making process technology established for close casting and casting of Al-killed steels
through billet/bloom casters.
Reduction in ladle bottom build-up & Improvement in Steel ladle lining life, ISP. • Ladle life gradually improved to monthly avg. of 44 heats from 35 heats.
• Ladle bottom buildup and purging failure cases almost eliminated.
Control of strand breakout in billet caster, ISP. • Proper maintenance practices in secondary cooling zone, spray nozzles and mould coupled
with superheat control has been implemented for reducing breakouts more than 20 per
month to 7.8 per month.
To Study the effect of microlithotype distribution on Coke Quality, RDCIS, • Correlation developed between coal microlithotype distribution and coke quality.
Ranchi.

• Product Area

Product Benefits Derived

ASTM A572 Gr 50 (Type1), BSL Grade 50 is a high strength, low alloy steel that finds its suitable application where there is need
for more strength per unit of weight. It is commonly used in structural applications, heavy
construction equipment, building structures, heavy duty anchoring systems, truck frames, poles,
liners, conveyors, boom sections, structural steel shapes, and applications that require high
strength per weight ratio.

EN 10130 DC01, BSL This European Standard applies to cold rolled uncoated low carbon steel flat products in rolled
widths equal to or over 600 mm for cold forming, with thickness in the range of 0.35 mm - 3 mm,
delivered in sheet, coil, slit coil, or cut lengths. About 314 tons of material has been dispatched
to M/s M7 Metals GmbH, Switzerland.

High Strength IS 15914 Gr 2.2 mm Coils, BSL One heat of IS 15914 HS345 grade was made with modified chemistry and successfully hot
rolled into coils of size 2.2 x 1160 mm. Mechanical property requirement in hot rolled coils have
been achieved successfully for the first time.

HT700 Grade HR Coil, BSL HT700 grade is an advancement over HT600 grade, a high-strength advanced ferritic steels that
find widespread application in automobiles (tipper bodies to reduce the weight of such commercial
vehicles). Hot-rolled microalloyed ferritic steel offers adequate strength (~780 MPa) and good
stretch flangibility. The product has been successfully processed at BSL.

API X-70 PSL2 grade plates, RSP Processed plates have fully met the GAIL-MECON specification in terms of tensile, Charpy V-
notch impact and DWTT properties. As a result of this successful trial, RSP is now an approved
supplier of API X70 plates steel for GAIL's pipeline projects.

Customized IS 2062 E 250 C / E 410 Plates (54 J at -20 °C), RSP The Chenab bridge project requires steel plates in 40, 50 and 63 mm thickness of IS 2062 E410
C and IS E250 C grade with enhanced Charpy impact toughness of 54 Joules at - 20oC and ferrite
grain size of minimum ASTM 8. Mechanical properties of the plates including their microstructures
were evaluated and found to meet all the quality requirements including the stringent Charpy
impact toughness (> 54 J at - 20oC) and ferrite grain size of ASTM no. 8. Based on the results of
this trial RSP is in process of getting approved for empanelment as supplier of PM Plates from
NPM for the prestigious Chenab Bridge project.

Boiler Grade IS 2002 Gr3 Plates, RSP Process technology has been established for IS 2002 Grade 3 high tensile plates using non-
microalloyed (NMA) steel chemistry through BOF-LHF-RHOB-CC-NPM route. Around 1500 tons
of high tensile plates have been processed at RSP for first time through adoption of appropriate
slab chemistry & normalizing rolling.

178
 Product Benefits Derived

SAILARM Q&T Plates (ASP-RSP Route) Under the Make in India initiative of Govt. of India, Ordnance Factory Khamaria, placed an order
on RSP to supply 70 tons of rolled homogeneous armour (RHA) steel plates conforming to MIL-
A-12560H Class-3 specification in the size of 150x1000x2000 mm. About 45 tons of RHA plates
have been sent to OF Khamaria. Results of mechanical testing at Khamaria have found the
properties of supplied plates okay in all respect.
ISH 5986 Gr 590R Plates, BSP The order of 300 T of 12 x 2500 x 11200 mm new grade IS 5986 ISH 590 R was accepted by
BSP under new product development for wagon building under the new design of RDSO for
Indian railways. Processed plates have successfully qualified for IS 5986 ISH 590R grade and
the same have been dispatched to Railways.
Non Micro alloyed E350 C Gr Plates, BSP SAIL has been producing IS 2062 E350 grade with microalloying under the brand name of
SAILMA350 having microalloying elements like Nb or V or Ti or their combination. For enhancing
the NSR through cost reduction by saving microalloying additions, efforts were on to achieve
properties including impact toughness at different temperatures. Evaluated properties underline
that product technology for production of non-microalloyed plates upto 20 mm thickness is
established at BSP.
IS 2062 E250 B0 Si K , BSP IS 2062 B0 250(SK) Grade Channel of size 75 X 40 mm was rolled in Merchant Mill. Mechanical
properties conforming to IS 2062 E250 B0 is a new product developed at BSP.
HSFQ 450 Grade 10/12 mm Plates, BSP High Strength Formable Quality (HSFQ) grade steels are designed to have combination of
mechanical and formability properties. This grade finds application for Pre Engineered Building
(PEB) segments, steel construction, tool boxes, cabinets, and storage bins etc. Higher strength
enables higher load bearing ability in steel, which often allows use of thinner sections for the
same application leading to reduced material cost. Market acceptability of HR coils of HSFQ 350
grade steel has been good. In light of above, development of HSFQ 450 plates from BSP was
undertaken in plate form.
Seismic Resistant (IS 15962) Channels, BSP Channel of size 75 x 40 mm conforming to IS 15962 E250S mm were rolled at Merchant Mill.
Total 331 T was generated.
IS 2879 EWNR Wire Rod, ISP IS 2879:1998 grade Electrode Wire Non-Rimming (EWNR) is used as electrode for arc-welding
to join steels. This product has been developed by ISP. ISP is now making this grade without
difficulty. More than 3,500 tons of this grade has been made so far.
SAE 1008 Wire Rod, ISP SAE 1008 (IS 7887 Gr. 3 /SWR 10) is a special grade wire rods used for Cable armouring, wire
mesh and other low carbon applications. These billets were rolled at WRM into 5.5 & 6 mm sizes
and achieved desired properties. More than 32000 tons has been produced at ISP till date.
BS 4449 TMT bars, ISP Corrosion resistant TMT bar with Cu and Cr as per BS 4449 grade B500B for BHEL Bangladesh
power plant project has been successfully developed at ISP. Cast billets were rolled into 10 mm
TMT Coil (BS4449 B500B, HCR) at wire rod mill of ISP and achieved desired mechanical properties.
About 2050 ton has been exported to Bangladesh.
IS 2062 E 350 NPB and Angles, ISP IP 300, IP 450, IP 600 Narrow Parallel Beam and Angle 200x200x20 find application in construction
segment. For development and stabilization of these products corresponding to IS 2062 E 350
BR grade, heats were made as per the specifications of IS 2062 E 350 and continuously cast into
blooms / beam blanks. These were subsequently rolled into IP 300, IP 450, IP 600 and Angle
200x200x20 at USM, ISP. Properties achieved in the processed structurals of USM, ISP met the
specification of IS 2062 E 350 BR grade in all respect. Above grade is developed and stabilized
in USM at ISP. More than 2700 T of IS 2062 E350 BR grade structurals have been produced.
IS 2062 E 410 NPB, ISP IS 2062:2011, E410C grade is used for Structural applications in construction segment. These
beam blanks were rolled into IPE 600 (600X200 mm) parallel flange beams in Universal Section
Mill, ISP with dimensional tolerances and sectional weight variation within the standard limits as
per IS: 12779:1989. Mechanical properties achieved satisfies the requirement of IS:2062: 2011,
E410C grade. Impact properties were found to be well above the specifications (44.46 J against
25 J at - 200C)
Al-killed blooms for IS 2062 E 410, DSP One heat of IS 2062 E 410 was made with 0.18% C, 1.43% Mn, 0.24% Si, 0.062% V, 0.020% S,
0.038% P and 0.002% Al and it was successfully cast into 300 x 150 mm blooms. Charpy
impact property was evaluated and was found to be satisfactory with 28 J (average) at - 200 C.
Trial processed steel met the specification of IS 2062 E 410 BR.
IS 2062 E 350 BR & B0 WPB 160 x 4.5 /6 mm, DSP Heats were made meeting the chemistry requirements specified by IS 2062 E 350 grade and
were continuously cast into blooms of 350 x 240 mm. These blooms were hot rolled into Wide
Parallel Beam (WPB) 160 x 4.5 / 6 mm at MSM, DSP. Process capability for production of WPB
of (a) IS 2062 E350 BR Grade, (b) IS 2062 E350 B0 Grade have been established at MSM, DSP
More than 650 T E350 grade in WPB 160 x 4.5 & 6 mm profiles have been produced and
dispatched from DSP.
IS 2062 E 410 BR & B0 WPB 160 x 4.5 /6 mm, DSP A trial heat was made meeting the chemistry requirements specified by IS 2062 E 410 and was
continuously cast into blooms of 350 x 240 mm. These blooms were hot rolled into Wide Parallel
Beam (WPB) 160 x 4.5 / 6 mm at MSM, DSP. Processed WPB met properties corresponding to
the specifications of IS 2062 E 410 in all regards including toughness requirements of ambient
and 0oC Charpy specified for BR and B0 grades. Process capability for production of WPB of (a)
IS 2062 E410 BR Grade and (b) IS 2062 E410 B0 Grade have been established at MSM, DSP.

179
Other Technology Absorption, Adaption & Innovation Measures
Technology development, absorption, adaption and further improvement are continuously taking place in the Company in different areas of Steel Plant Operation
through a definitive technology strategy. A number of new technologies are installed / being installed as a part of modernization/continuous improvement. These
area-wise include:
Sl. No. Description Year Status

COKE MAKING

1. New 7 m tall environment friendly Coke Oven Battery No.9 at BSP 2017 Commissioned

2. Rebuilding of environment friendly Coke Oven Battery No. 7 at BSL 2017 Commissioned

SINTER MAKING/AGGLOMERATION

1. Revamping of sinter cooler at SP II (Machine no.-1) at BSP 2017 Commissioned

2. Installation of Sinter Plant II, BSL 2018 Likely to be commissioned

IRON MAKING

1. Blast Furnace (BF) with modern facilities such as:

• Conveyor charging system
• Closed Loop Cooling System with soft water as an efficient cooling system
• Modern refractory design
• Flat Cast House Design with ramp for use of mobile equipment for maintenance etc.

i) BF#8 at BSP 2018 Commissioned

ii) BF#1 RSP 2018 Likely to be commissioned

2. Gas Cleaning Plant (GCP) for improvement in quality of BF gas

i) GCP in BF#8, BSP 2018 Commissioned

3. INBA Cast House Slag Granulation Technology at BSL

i) BF#2, Cast House 4 2018 Likely to be commissioned

ii) BF#3, Cast House 5 2018 Likely to be commissioned

iii) BF #1, Cast House 1 & 2 2018 Likely to be commissioned

4. High Hot Blast technology in stoves with waste heat recovery system for achieving HBT of
>1200oC

i) Stoves System in BF#8, BSP 2018 Commissioned

ii) Stoves System in BF#1, RSP 2018 Likely to be commissioned

iii) Stoves System in BF#1, BSL 2018 Likely to be commissioned

5. Top Recovery Turbine in Blast Furnaces for generation of power

BF#8, BSP 2018 Likely to be commissioned

6. Coal dust injection system

i) BF#4, BSP 2018 Likely to be commissioned

ii) BF#8, BSP 2018 Likely to be commissioned

STEEL MAKING

1. Installation of 45 MVA SAF at CFP 2018 Likely to be Commissioned

2. SMS III at BSP 2018 Likely to be Commissioned

ROLLING & FINISHING

1. Universal Rail Mill, BSP

i) Walking-beam (WB) type re-heating furnaces 2018 Under Commissioning

ii) Universal stands with quick roll cassette changing facility for easy switch-over of campaigns and
production of universal sections which have inherent advantages of simplicity in fabrication, higher
section modulus to weight ratio, higher buckling strength, etc.

180
Sl. No. Description Year Status

2. Bar & Rod Mill

i) Hot charging of billets to reduce specific fuel consumption 2018 Likely to be commissioned
ii) Walking-beam (WB) type re-heating furnaces
iii) High speed slit rolling with commensurate bar receiving, speed braking & delivery facility in cooling
beds to achieve high production rate, close/ negative tolerance and better surface finish of lower
diameter TMT rods/ bars
iv) Reducing & sizing mills to facilitate size-free rolling (faster changeover of sections to any
diameter in increment of 0.5 mm) of wire rods
v) On-line profile gauges for stock to stock monitoring of important geometric values for minimizing
rejections and taking timely corrective actions
3. Medium Structural Mill, DSP
i) Walking-beam (WB) type re-heating furnaces 2018 Likely to be commissioned
ii) Universal stands with quick roll cassette changing facility for easy switch-over of campaigns and
production of universal sections which have inherent advantages of simplicity in fabrication, higher
section modulus to weight ratio, higher buckling strength, etc.
iii) On-line profile gauges for stock to stock monitoring of important geometric values for minimizing
rejections and taking timely corrective actions

Expenditure on Research & Development (` crore)

(a) Capital : 20.79
(b) Revenue : 314.71
Total : 335.50
Total R&D Expenditure as a % of Total Turnover : 0.58
Foreign Exchange Earnings and Outgo (` crore)
i) Foreign Exchange earned from exports and other activities : 2243.70
ii) Foreign Exchange used:
a) CIF Value of imports : 3771.22
b) Other expenditure in foreign currency : 180.62

For and on behalf of the Board of Directors

Sd/-
(Saraswati Prasad)
Chairman & Managing Director
Place: New Delhi
Dated: 13th August, 2018

181
 Annexure-XII to the Board’s Report

ANNUAL REPORT ON CSR ACTIVITIES 2017-18

1. A brief outline of the CSR Policy, including overview of Projects proposed to be undertaken and a reference to the web link to the CSR Policy and Projects.
1(A) Brief Outline (Objectives) of SAIL CSR Policy:
• Create value for the stakeholders and society that are fundamentally linked to SAIL's core business strategies and operations through its services, conduct & initiatives for their
sustainable development.
• Enhance value creation for the community in which it operates by identifying with the hamlet and foster goodwill towards the Company from those living along the periphery
by enhancing the quality of life of people in the direct impact zone.
• Support the community by assisting the underprivileged.
• Carry out developmental initiatives in order to meet the calls of the present without compromising the ability of future to meet its needs.
• Support local populace by building the image of SAIL as patron of diverse pastoral sports, art & cultures.
• To operate in a socially, environmentally and economically responsible manner, so as to succeed by seeking social license.
1(B) Overview of SAIL CSR Projects/Activities:
All the CSR activities/projects fall in line with Schedule VII of the Companies Act, 2013 focussing on issues which are of foremost concern in the national development agenda:
i. Promoting healthcare including preventive health care, sanitation and access to drinking water.
ii. Promotion of education, employment/livelihood enhancing vocation skills.
iii. Promotion of gender equality, empowering women, facilities for senior citizens and Persons with special abilities and socially-economically backward groups.
iv. Ensuring environmental sustainability, animal welfare and agro-forestry.
v. Protection of national heritage, art and culture.
vi. Training to promote rural sports.
vii. Rural development.
1(C) Web-link for SAIL CSR Policy and Projects: https://sail.co.in/sites/default/files/sail-pages/company/csrpolicy.pdf
2. Composition of the CSR Committee:
A Board Level Committee on Corporate Social Responsibility comprising Independent and Functional Directors is in place. The members of the CSR Committee as on 30th June,
2018 are:
Sl.No Name Designation
1 CA K.S. Chauhan Independent Director & Chairman
2 Mrs. Anshu Vaish Independent Director
3 Prof. Ashok Gupta Independent Director
4 Dr. Samar Singh Independent Director
5 Shri Anil Kumar Chaudhary Director (Finance)
6 Shri Raman Director (Technical)
7 Shri Atul Srivastava Director(Personnel)

3. Average Net Profit for last three FYs : `(-)3278.28 crores

4. Prescribed CSR Expenditure : 'Nil' as 2% of amount as in Item 3 above is in the negative
5. Details of CSR spent during FY 2017-18 :
a) Total amount to be spent : "Nil" **
b) Amount unspent, if any : "Nil" **
**(NIL as per the provisions of Companies Act, 2013. However, for ongoing core CSR activities the
Board decided to spend ` 26.00 crore)
c) Manner in which the amount spent : Details furnished in prescribed format at Annexure-A
6. In case the company has failed to spend the 2% of average net profit of the last three FYs or any part thereof, Board's Report to disclose reasons for such non-compliance.
In terms of Section 135(5) of the Companies Act, 2013, 2% of average net profit during the three immediately preceding Financial Years i.e. FY 2014-15 to FY 2016-17 is "Nil".
However, the Board of Directors in order to sustain the ongoing CSR activities in the periphery of Plants and Mines of the Company(which primarily consist of the backward districts)
allocated budget for carrying out CSR interventions in consonance with Schedule-VII of the Companies Act, 2013.
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR policy, is in compliance with CSR Objectives and Policy of the Company.
It may be noted that SAIL has continuously been incurring losses since Financial Year 2015-16. The implementation and monitoring of Corporate Social Responsibility (CSR) Policy,
is in compliance with CSR Objectives and Policy of the Company.
During 2017-18, SAIL mainly focused on sustenance of ongoing core CSR activities which were primarily in the areas of education of children in CSR run schools, support for mid-
day meals in Government schools, scholarships for children, educational schemes for tribal/backward children adopted for providing comprehensive facilities, operation of Primary
Health Centres for under-privileged people, organisation of medical camps and operation of mobile medical units, skills development and women empowerment programmes and
assistance to differently abled people, Sr. Citizens, etc. All these CSR endeavors were in accordance with provisions specified in Schedule-VII of the Companies Act, 2013 and
Companies (CSR Policy) Rules, 2014.
In addition, 845 rural youths have been sponsored for ITI trainings. Over 600 youths & 1468 women folks have undergone Skills Development Trainings in industrial trades, soft
skills, hospitality, handlooms, handicrafts, improved agriculture techniques, domestic products, farmhouse produce, etc. at Bhilai Ispat Kaushal Kutir, Swayamsiddha & PG College
of Nursing: Bhilai, Shilpangan: Durgapur, Kishori: Rourkela, Jharcraft: Bokaro, Vocational Training Centre & Mahila Mangal Sabha: Burnpur, Garment Technician Training: Salem,
Kiran : Kiriburu & Meghahathaburu, Aashaye Handloom Center: Gua mines, etc. SAIL is also instrumental in marketing of the products manufactured at such centres.
The major CSR activities undertaken by SAIL during 2017-18 have been elaborated in the prescribed format at Annexure-A.

Sd/- Sd/- Sd/-

(Atul Srivastava) (Anil Kumar Chaudhary) (CA K.S. Chauhan)
Director (Personnel) Director (Finance) Chairman, CSR Committee
SAIL SAIL SAIL

182
 Annexure-A to the Report on CSR Activities
SAIL CSR PROJECTS/ACTIVITIES UNDERTAKEN DURING 2017-18
(` crore)
Sl. CSR Project or activity identified Sector in which the Projects (State & Amount Amount spent Cumulative Amount spent :
No. project is covered District where projects outlay on the projects: expenditure Direct or through
Schedule VII of the were undertaken) (budget) Direct up to the implementing
Companies Act, 2013 projects expenditure reporting agency
wise or Overheads period (2014-15
to 2017-18)

1 2 3 4 5 6 7 8

Direct and through

1 Eradicating hunger, poverty and malnutrition, promoting Cl.(i) Healthcare, Drinking In the peripheral areas of 5.58 7.01 49.06 Implementing
healthcare including preventive health care and sanitation, Water & Sanitation SAIL Plants and Units. The
Agencies, viz. Akshay
construction of toilets under SVA and making available districts covered are Durg,
Patra Fdn, Sw.
safe drinking water; Bilaspur, Balod, Kanker,
Vivekakanda Vani
Narayanpur, Dhamtari,
Prachar Samity, Mahila
2 Promotion of education including special education and Cl.(ii) Education & Rajnandgaon, Champa in 14.85 11.19 51.27
Samity, Ramakrishna
employment enhancing vocation skills especially among Livelihood Generation Chhattisgarh, Burdwan,
Mission, Bharati
children, women, elderly and differently abled and Bankura, South 24
Bhaban, Women
livelihood enhancement projects; Pargnas, Nadia and
Voluntary Services,
Kolkata in W.Bengal,
3 Promotion of gender equality and empowering women, Cl.(iii) Women 1.37 1.08 9.60 Burnpur Mahila Samaj,
Sundergarh & Keojhar in
setting up homes and hostel for women and orphans; Empowerment & Care for Dipanwita Sab
Odisha, Bokaro, Deoghar,
setting up old age homes, day care centers and such Sr. Citizens & PwDs Payechhir Asar,
W.Singhbhum, Garhwa,
other facilities for senior citizens and measures for reducing Shamayita Math,
Dhanbad, Ranchi & Khunti
inequalities faced by socially and economically backward Burnpur Ambagan Vol.
in Jharkhand, Salem &
groups; Social Wel. Org.,
Cuddalore in Tamil Nadu,
Kartavya, Durgapur
Chikamangaluru in
4 Protection of heritage, art, culture & Training to promote Cl.(v) & (vii) Promotion of 1.88 1.92 14.85 Mishra Ispat Abasik
Karnataka, Chandrapur in
rural sports,Nationally recognised sports, paralympic sports Sports, Art & Culture Mahila Samaj, Peace
Maharashtra, Gwalior in
and Olympic sports; House Welfare Trust,
MP, Guntur in Andhra
Gopalmath Sisu Kalyan
5 Ensuring environmental sustainability, flora and fauna, Cl.(iv) Environment Pradesh, etc. 0.99 2.20 22.06 Samity, Industrial
animal welfare, agroforestry, conservation of natural sustainability Training Institute,
resources and maintaining quality of soil, air and water; CIPET, Intensive Khadi
Rural Dev. Center,
6 Rural development projects Cl.(x) Infrastructure 0.92 2.07 15.77 Jharcraft, State
& Rural Development agencies, Bhilai Ispat
7 Capacity Building CSR Rules, 2014 Cl.4(6) 0.13 0.23 3.34 Kaushal Kutir,
Swayamsiddha, DSP
8 Provisions for Disaster Relief & Additional allocation for 0.28 0.00 0.00 Mahila Samaj, Jan
CSR projects as per Schedule-VII Shikshan Sansthan,
General Circular No. 21/2014 dt.18/8/14 AROH Foundation,
Annexure Pt.7 of Para (i) SRREOSHI, Sona
College of Technology,
Total 26.00 25.70 165.95 SCEWASTAMB &
Balagoda SHG
Aashaye, Gua, Deen-
Disha Centre(S.E.C.)
Manoharpur, Society
for Rural
Industrialisation,
Missionaries of charity,
Cheshire Home, etc.

Note: Project-wise outlay amount of `26 crore includes unspent amount of `0.29 crore of 2016-17 Budget.

183
 PRINCIPAL EXECUTIVES AS ON 03.08.2018

CORPORATE OFFICE STEEL PLANTS / UNITS Salem Steel Plant

General Manager
NEW DELHI Bhilai Steel Plant
A. Chidambaram
Chief Executive Officer
Special Secretary & Financial Adviser, Ministry M. Ravi Visvesvaraya Iron & Steel Plant
of Steel and Chairman & Managing Director Executive Directors Executive Director
(Additional Charge) Projects V. Gupta
Saraswati Prasad A. K. Mathur
Works UNITS
Directors
Finance P. K. Dash Raw Materials Division
Anil Kumar Chaudhary Materials Management Executive Director
Projects & Business Planning Ms. Reeta Banerjee In Charge with Addnl. Charge of ED, Collieries
Dr. G. Vishwakarma M&HS - Director I/c P. Saidev
Commercial Dr. K. N. Thakur Personnel & Administration
Ms. Soma Mondal Finance & Accounts Amitabha Bhattacharya
Personnel B. P. Nayak RP&E
Atul Srivastava Durgapur Steel Plant P. C. Naik
Technical Chief Executive Officer Projects
Harinand Rai A. K. Rath Alok Kr. Kabisatapathy
Executive Directors Centre for Engineering & Technology
Executive Directors
B. P. Verma Executive Director
Power, Elec. & SAILCON
Works K. Das
Tejveer Singh
T. B. Singh Central Marketing Organisation
Chairman's Sectt.
Projects Executive Directors
P. K. Jha
A. R. Dasgupta Marketing - Commercial
Coal Import Group
S. Sitapati Rourkela Steel Plant Alok Sahay
Special Assignment Chief Executive Officer Marketing - LP & FP
Kalyan Maity Ashwini Kumar Biswajit Chongdar
Executive Directors Marketing - ITD
ED(F&A) & Secretary Personnel & Administration Deb Kalyan Mohanty
M. C. Jain P. K. Pradhan
Transport & Shipping
Chief of Corporate Affairs Projects
Executive Director
M. C. Agrawal R. Agarwal
L. N. Mallick
Bokaro Steel Plant
Safety SAIL Refractory Unit
Chief Executive Officer
General Manager General Manager I/c
P. K. Singh
K. B. Sunil R. K. Ahuja
Executive Directors
Management Training Institute M&HS - Director I/c Chandrapur Ferro Alloy Plant
Mrs. Kamakshi Raman Dr. A. K. Singh Executive Director
Materials Management S. K. Saha
H. P. Singh
Works Environment Mgmt. Division
S. K. Singh General Manager
Projects S. K. Das
R. C. Srivastav
IISCO Steel Plant
Chief Executive Officer
Anirban Dasgupta
Works
Wakil Singh
Personnel & Administration
C. S. Sinha
Alloy Steels Plant
Executive Director
Santosh Kumar Misra

184
 STEEL AUTHORITY OF INDIA LIMITED
REGISTERED OFFICE: ISPAT BHAWAN, LODI ROAD, NEW DELHI-110003
CIN: L27109DL1973GOI006454

NOTICE
NOTICE IS HEREBY GIVEN THAT the 46th Annual General Meeting of the Members of the Companies Act, 2013 and the Articles of Association of the Company and who
Steel Authority of India Limited will be held at 1030 hours on Thursday, the 20th September, holds office upto the date of this Annual General Meeting and in respect of whom
2018, at NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001 to transact the the Company has received a notice in writing, proposing his candidature for the
following business: office of Director, under Section 160 of the Companies Act, 2013, be and is hereby
appointed as a Director of the Company, liable to retire by rotation."
ORDINARY BUSINESS
8. To obtain consent for Borrowings and creation of charge on the assets of the
1. To receive, consider and adopt: Company and in this regard to consider and if thought fit, to pass with or without
modification(s), the following resolutions as Special Resolutions:
(i) the Audited Standalone Financial Statements of the Company for the Financial
Year ended 31st March, 2018, together with Reports of the Board of Directors
"RESOLVED THAT pursuant to the provisions of Section 42 of the Companies Act,
and Auditors thereon.
2013 read with Rule 14 of the Companies (Prospectus and Allotment of Securities)
(ii) the Audited Consolidated Financial Statements of the Company for the Financial Rules, 2014 and any other applicable provisions of the Companies Act, 2013, the
Year ended 31st March, 2018 and the Report of the Auditors thereon. Board of Directors of the Company be and is hereby authorized to make Offer(s) or
Invitation(s) to raise funds through Private Placement of Secured Non-convertible
2. To appoint a director in place of Dr. G. Vishwakarma (DIN:07389419), who retires Debentures/Bonds of up to `5,000 crore, during a period of one year from the date
by rotation at this Annual General Meeting and is eligible for re-appointment. of this Annual General Meeting, in one or more tranches to such person or persons,
including eligible investors (whether residents and/or non-residents and/or
3. To fix the remuneration of the Auditors of the Company appointed by the Comptroller institutions/corporate bodies and/or individuals and/or trustees and/or banks or
& Auditor General of India for the Financial Year 2018-19. otherwise, in domestic and/or one or more international markets), Non-resident
Indians, Foreign Institutional Investors (FIIs), Venture Capital Funds, Foreign Venture
SPECIAL BUSINESS Capital Investors, State Industrial Developments Corporations, Insurance Companies,
Provident Funds, Pension Funds, Development Financial Institutions, Bodies
4. To appoint CA Kartar Singh Chauhan (DIN:07811175) as an Independent Director
Corporate, companies, private or public, or other entities, authorities and such
and in this regard to consider and if thought fit, to pass, with or without
other persons, who may or may not be the bond/debenture holders of the Company,
modification(s), the following resolution as an Ordinary Resolution:
in one or more combinations thereof, including the green-shoe option (within overall
"RESOLVED THAT pursuant to the provisions of sections 149 and 152 read with limit of `5,000 crore, as stated above), as the Board may, at its sole discretion
Schedule IV and all other applicable provisions of the Companies Act, 2013, CA decide on such terms and conditions as may be finalized by the Board or any
Kartar Singh Chauhan (DIN:07811175), who was appointed as an Additional Director Committee thereof as may be approved and authorized by the Board or such other
pursuant to the provisions of Section 161 of the Companies Act, 2013 and the functionary of the Company as may be approved by the Board/ or such Committee."
Articles of Association of the Company and who holds office upto the date of this
Annual General Meeting and in respect of whom the Company has received a notice "RESOLVED FURTHER THAT consent of the Company be and is hereby accorded
in writing under Section 160 of the Companies Act, 2013, proposing his candidature in terms of Section 180 (1)(a) and other applicable provisions, if any, of the
for the office of Director, be and is hereby appointed as an Independent Director of Companies Act, 2013 read with the Companies (Management and Administration)
the Company to hold office for 3 (three) consecutive years for a term upto 21st Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for
September, 2020." the time being in force) and any other applicable laws and provisions of Articles of
Association of the Company, to the Board of Directors of the Company (the "Board")
5. To appoint Prof. Narendra Kumar Taneja (DIN:07938062) as an Independent Director or any Committee thereof, to create charge, hypothecate, mortgage, pledge in
and in this regard to consider and if thought fit, to pass, with or without addition to existing charges, mortgages and hypothecations created by the Company
modification(s), the following resolution as an Ordinary Resolution: on any movable and/or immovable properties of the Company wheresoever situated,
both present and future and on the whole or substantially the whole of the undertaking
"RESOLVED THAT pursuant to the provisions of sections 149 and 152 read with or undertakings of the Company in favour of any banks, financial institutions, hire
Schedule IV and all other applicable provisions of the Companies Act, 2013, Prof. purchase/lease companies, body corporates, trustees for the holders of Debentures/
Narendra Kumar Taneja (DIN:07938062), who was appointed as an Additional Bonds/Other Instruments/Securities or any other persons on such terms and
Director pursuant to the provisions of Section 161 of the Companies Act, 2013 and conditions and covenants as the Board or any Committee thereof may think fit for
the Articles of Association of the Company and who holds office upto the date of securing borrowings of funds, availed or to be availed, from time to time, by way of
this Annual General Meeting and in respect of whom the Company has received a Term Loans, External Commercial Borrowings, issue of Debentures/Bonds, etc.
notice in writing under Section 160 of the Companies Act, 2013, proposing his not exceeding the limit approved by the Shareholders in terms of Section 180(1)(c)
candidature for the office of Director, be and is hereby appointed as an Independent of the Companies Act, 2013.
Director of the Company to hold office for 3 (three) consecutive years for a term
upto 21st September, 2020." "RESOLVED FURTHER THAT the Board of Directors of the Company, be and is
hereby authorized to authorize the Committee of the Board to determine the terms
6. To appoint Shri Atul Srivastava (DIN:07957068) as a Whole Time Director and in of the Issue, including the class of investors to whom the bonds/debentures are to
this regard to consider and if thought fit, to pass, with or without modification(s), be allotted, the number of bonds/debentures to be allotted in each tranche, issue
the following resolution as an Ordinary Resolution: price, tenor, interest rate, premium/discount to the then prevailing market price,
amount of issue, discount to issue price to a class of bond/debenture holders,
"RESOLVED THAT Shri Atul Srivastava (DIN:07957068) who was appointed as an
listing, issuing any declaration/undertaking, etc. required to be included in the Private
Additional Director of the Company by the Board of Directors under Section 161 of
Placement Offer Letter and any other regulatory requirement for the time being in
the Companies Act, 2013 and the Articles of Association of the Company and who
force."
holds office upto the date of this Annual General Meeting and in respect of whom
the Company has received a notice in writing, proposing his candidature for the "RESOLVED FURTHER THAT the Board of Directors of the Company and /or a
office of Director, under Section 160 of the Companies Act, 2013, be and is hereby Committee thereof as may be approved and authorized by the Board, if any, be and
appointed as a Director of the Company, liable to retire by rotation." are hereby authorized to do all necessary acts, deeds, actions, and other things
and to take all such steps as may be required or considered necessary or incidental
7. To appoint Shri Harinand Rai (DIN:08189837) as a Whole Time Director and in this
thereto for giving effect to this resolution."
regard to consider and if thought fit, to pass, with or without modification(s), the
following resolution as an Ordinary Resolution:
"RESOLVED FURTHER THAT the Board of Directors of the Company be and is
"RESOLVED THAT Shri Harinand Rai (DIN:08189837) who was appointed as an hereby authorized to delegate all or any of the powers herein conferred to any
Additional Director of the Company by the Board of Directors under Section 161 of Committee of Directors or any one or more Directors of the Company."

185
9. To ratify the remuneration of the Cost Auditors of the Company and in this regard to "RESOLVED FURTHER THAT the Board of Directors of the Company be and is
consider, and if thought fit, to pass, with or without modification(s), the following hereby authorized to do all acts and take all such steps as may be necessary,
resolution as an Ordinary Resolution. proper or expedient to give effect to this resolution."

"RESOLVED THAT pursuant to the provisions of Section 148 and other applicable
provisions, if any, of the Companies Act, 2013 and the Companies (Audit and By order of the Board of Directors
Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment
thereof, for the time being in force), the remuneration of `9,75,000/-plus taxes as
applicable and reimbursement of Daily Allowance, travelling expenses and out of (M.C. Jain)
pocket expenses to be paid to the Cost Auditors viz. M/s. R.J. Goel & Co., ED (F&A) and Secretary
New Delhi (for Bhilai Steel Plant, Durgapur Steel Plant and IISCO Steel Plant), M/s. Place: New Delhi
Shome& Banerjee, Kolkata (for Bokaro Steel Plant and Rourkela Steel Plant), M/s. Dated: 13th August, 2018
Sanjay Gupta & Associates, New Delhi (for Alloy Steels Plant, Salem Steel Plant Registered Office:
and Visvesvaraya Iron and Steel Plant) for the Financial Year 2018-19, as approved Ispat Bhawan, Lodi Road, New Delhi-110003.
by the Board of Directors, be and is hereby ratified." CIN: L27109DL1973GOI006454

Notes: ii) Members holding shares in the physical form should notify change in their addresses,
1. The relevant Explanatory Statement, pursuant to Section 102(1) of the Companies if any, to the R&TA specifying full address in block letters with PIN CODE of their
Act, 2013, in respect of the business Item Nos. 4 to 9 above is annexed hereto. The post offices, which is mandatory. Members holding shares in the Electronic Form
relevant details under Item No.2 of the Notice of the person(s) seeking re-appointment (Demat), should inform the change of address to their Depository Participant.
as Director required vide Regulation 36(3) of SEBI (Listing Obligations and Disclosure iii) For making nomination, Members holding shares in physical form are advised to
Requirements) Regulations, 2015 are also annexed. collect the Nomination Form from the Company's Share & Transfer Agents and
2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO Members holding shares in Electronic Form, may obtain the Nomination Form from
APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF. SUCH PROXY their respective Depository Participant(s).
NEED NOT BE A MEMBER OF THE COMPANY. PROXIES IN ORDER TO BE EFFECTIVE iv) EFT MANDATE
MUST BE RECEIVED BY THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE
COMMENCEMENT OF THE MEETING. THE PROXY FORM IS ENCLOSED. Shareholders holding shares, whether in Physical or Demat form are advised to
opt for Electronic Fund Transfer (EFT), for any future payouts from the Company.
A PERSON CAN ACT AS A PROXY ON BEHALF OF MEMBERS NOT EXCEEDING Securities and Exchange Board of India (SEBI) vide Circular No. SEBI/HO/MIRSD/
FIFTY AND HOLDING IN THE AGGREGATE NOT MORE THAN TEN PERCENT OF DOP1/CIR/2018/73 dated 20th April, 2018 has directed to make payment of
THE TOTAL SHARE CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS. A dividend only through approved electronic mode and Bank Details and PAN of
MEMBER HOLDING MORE THAN TEN PERCENT OF THE TOTAL SHARE CAPITAL the shareholders be obtained, updated against their folio, if not already available
OF THE COMPANY CARRYING VOTING RIGHTS MAY APPOINT A SINGLE PERSON with the Company. Under EFT, the payment instruction is issued by the banker
AS PROXY AND SUCH PERSON SHALL NOT ACT AS A PROXY FOR ANY OTHER (Payer's banker) electronically to the clearing authority (RBI or SBI). The clearing
PERSON OR SHAREHOLDER. authority provides credit reports to the payee's Bank, who credits the amount to
their respective accounts. It becomes inevitable that the shareholders opting
3. Only Members carrying the attendance slips or holders of valid proxies registered
for EFT should provide details of their Bank Name, IFSC Code, A/c No., A/c Type,
with the Company will be permitted to attend the meeting. In case of shares held in
Branch Name, 9 digit MICR No. along with their Name and Folio Number (DP-ID/
joint names or shares held under different registered folios wherein the name of the
Client ID) to the Company if their holding is in Physical Form and to the Depository
sole holder/first joint-holder is same, only the first joint-holder/sole holder or any
participant, if their holding is in Demat Form. Accordingly, Shareholders holding
proxy appointed by such holder, as the case may be, will be permitted to attend the
shares in Physical form and receiving dividend by Dividend Warrant/Demad
meeting.
Draft, etc. are requested to fill the attached Form and submit it along with a
4. Corporate Members intending to send their authorised representative(s) to attend copy of the Self-attested PANCARD, an Original Cancelled Cheque Leaflet/
the meeting are requested to submit to the Company a certified true copy of the Attested Bank Passbook Copy showing Name of the Account Holder(s) to M/s.
relevant Board Resolution alongwith the specimen signature(s) of the MCS Share Transfer Agent Limited, Registrar & Share Transfer Agent of SAIL,
representative(s) authorised to attend and vote on their behalf at the meeting. to update the records for payment of any dividend in future.

5. Members attending the meeting are requested to bring their copy of the Annual 9. Members holding shares in identical order of names in more than one folio are
Report as provided. requested to write to the Company's Shares Department/R&TA enclosing their Share
Certificates to enable the Company to consolidate their holdings in one folio.
6. The Register of Members of the Company will remain closed from 21st August,
2018 to 24th August, 2018 (both days inclusive). 10. The Company has transferred to Investor Education and Protection Fund (IEPF),
unclaimed dividends till Financial Year 2010-11(Interim). The Company has,
7. M/s. MCS Share Transfer Agents Limited are acting as the Registrar and Transfer thereafter, paid/declared the following dividends:
Agent (R&TA) for carrying out the Company's entire share related activities viz.
Transfer/ transmission/ transposition/ dematerialisation/ rematerialisation/ split/ Year Interim Dividend (%) Final Dividend (%)
consolidation of shares, change of address, bank mandate, filing of nomination,
dividend payment and allied activities. Shareholders are requested to make all future 2010-2011 - 12.00
correspondence related to share transfer and allied activities with this agency only
at the following address: 2011-2012 12.00 8.00

M/s. MCS Share Transfer Agents Limited, 2012-2013 16.00 4.00

F-65, 1st Floor, Okhla Industrial Area, Phase-I,
New Delhi-110020 2013-2014 20.20 -
Phone No.011-41406149, E-mail: admin@mcsregistrars.com
8. Dematerialisation 2014-2015 17.50 2.50

i) Securities and Exchange Board of India (SEBI) Regulations provide that equity shares 2015-2016 - -
of SAIL are to be compulsorily delivered in the dematerialized form, for the purpose
of trading. Further, SEBI vide Notification No. SEBI/LAD-NRO/GN/2018/24 dated 2016-2017 - -
8th June, 2018, has mandated that w.e.f. 5th December, 2018, transfer of shares
in a Listed Company shall only be in Dematerlised Form.Though most of the 2017-2018 - -
shareholders have converted their holdings into Demat Form, it is seen that
some shareholders still hold their shares in paper form (Physical). In this Shareholders who have not encashed their dividend warrants as above are requested
connection, shareholders are advised, to open a Demat Account with any to make their claims to the Company.
depository participant authorized by either National Securities Depository Ltd.
or Central Depository Services Ltd. and dematerialize their shares, to avoid Section 124(5) of the Companies Act, 2013 read with Investor Education and
inconvenience at later stage. Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016,

186
 ("Rules") provide that, any money transferred to the Unpaid Dividend Account of a VI. A person whose name is recorded in the Register of Members or in the Register
company in pursuance of this section which remains unpaid or unclaimed for a of Beneficial Owners maintained by the depositories as on the cut-off date i.e.
period of seven years from the date of such transfer, shall be transferred by the 13th September, 2018 only shall be entitled to avail the facility of remote
company along with interest accrued, if any, thereon to the Investor Education and e-voting or voting at the venue of the AGM through ballot paper.
Protection Fund (IEPF). Pursuant to the above provisions, the Company has
transferred all upaid/unclaimed dividend declared by it upto Financial year 2010-11 VII. A person who becomes a Member of the Company after dispatch of the Notice
(interim dividend). Upon completion of a period of seven years, the Company would of the AGM and holding shares as on cut-off date i.e.13th September, 2018,
transfer the unclaimed /unpaid dividend (final) of Financial year 2010-11 in November, can follow the process for generating the Login ID and Password as provided
2018. in the Notice of the AGM (provided at Sl. XII).

Section 124(6) of the Companies Act, 2013 read with Rules provide that all shares VIII. The remote e-voting period commences on 17th September, 2018 (9:00 am -
in respect of which dividend has not been paid or claimed for seven consecutive IST) and ends on 19th September, 2018 (5:00 pm - IST). During this period
years or more shall be transferred by the company in the name of IEPF. Accordingly, Members of the Company, holding shares either in physical form or in
the Company has initiated the compliance process for transfer of the shares to dematerialized form, as on the cut-off date of 13th September, 2018, may cast
IEPF. The Company has sent individual communication(s) to the concerned their vote by remote e-voting. The remote e-voting module will be disabled by
shareholders whose dividend has remained unpaid or unclaimed for seven NSDL for voting upon the expiry of the above period. Once the vote on a
consecutive years, providing complete details of the shares due for transfer to IEPF. resolution is cast by a Member, the Member shall not be allowed to change
The Company has also published Notice in the newspapers advising such it subsequently or cast the vote again.
shareholders to encash their unclaimed dividend to avoid transfer of the shares.
Details of such Shareholders and Shares due for transfer to IEPF has been uploaded IX. The Scrutinizer, after scrutinizing the votes cast at the venue of the AGM(ballot
on the Company's website. paper) and through remote e-voting, will, not later than 48 Hours from the
conclusion of the AGM, make a consolidated scrutiniser's report and submit
Claimants of the dividend /shares transferred to IEPF are entitled to claim refund by the same to the Chairman or a person authorized by him in writing. The results
applying to IEPF. declared alongwith with the consolidated scrutiniser's report shall be placed
11. Members seeking further information on the Accounts or any other matter contained on the website of the Company-www.sail.co.in and on the website of NSDL.
in the Notice, are requested to write to the Company at least 7 days before the The results shall be simultaneously communicated to the Stock Exchanges.
meeting so that relevant information can be kept ready at the meeting.
X. Subject to receipt of requisite number of votes, the Resolutions shall be deemed
12. Green Initiative in Corporate Governance of Ministry of Corporate Affairs to be passed on the date of the AGM i.e. 20th September, 2018.
The Ministry of Corporate Affairs (MCA) has taken a "Green Initiative in Corporate XI. The process and manner for remote e-voting are as under:
Governance" by allowing paperless compliances by companies through electronic
mode. In accordance with the circulars issued by the MCA, companies can now A. The way to vote electronically on NSDL e-Voting system consists of "Two
send various notices /documents (including notice(s) calling General Meeting(s), Steps" which are mentioned below:
Audited Financial Statements, Board’s Report, Auditors' Report, etc.) to their
shareholders through electronic mode, to the registered email address of the Step 1 : Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/
shareholder(s).
Step 2 : Cast your vote electronically on NSDL e-Voting system.
Members are requested to opt for receipt of the above notices/documents through
electronic mode. They are requested to register their e-mail ID for this purpose with Details on Step 1 is mentioned below:
their respective depository participant or with the Company's Registrar and Transfer
Agent i.e. M/s. MCS Share Transfer Agents Limited at the address given above or How to Log-in to NSDL e-Voting website?
e-mail at admin@mcsregistrars.com
(i) Visit the e-Voting website of NSDL. Open web browser by typing the following
Please note that these documents will also be available on the Company's website URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a
www.sail.co.in and physical copies of the same will also be available at the registered mobile.
office as mentioned herein above for inspection during office hours.
(ii) Once the home page of e-Voting system is launched, click on the icon "Login"
13. Entry to the Auditorium will be strictly against Entry Slip available at the counters which is available under 'Shareholders' section.
at the venue and against exchange of Attendance Slip.
14. No Brief case or Bag or mobile phone will be allowed to be taken inside the (iii) A new screen will open. You will have to enter your User ID, your Password
auditorium. and a Verification Code as shown on the screen.

15. General Information and Instructions for E-voting: Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-
in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you
I. In compliance with provisions of Section 108 of the Companies Act, 2013, log-in to NSDL eservices after using your log-in credentials, click on e-Voting
and the Companies (Management and Administration) Rules, 2014 as and you can proceed to Step 2 i.e. Cast your vote electronically.
amended, and other applicable provisions, if any, of the Companies Act, 2013
and Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements), (iv) Your User ID details are given below:
Regulations, 2015, the Company is pleased to provide its Members the facility
to exercise their right to vote on resolutions proposed to be considered at the Manner of holding shares i.e. Your User ID is:
Annual General Meeting (AGM) by electronic means. The Members may cast Demat (NSDL or CDSL) or Physical
their votes using an electric voting system from a place other than the venue
of the AGM (remote e-voting). a) For Members who hold shares in 8 Character DP ID followed by 8 Digit
demat account with NSDL. Client ID
II. The facility for voting through ballot paper shall be made available at the venue
of the AGM and the Members attending the AGM who have not cast their vote For example if your DP ID is IN300***
by remote e-voting shall be able to vote at the AGM through ballot paper and Client ID is 12****** then your
voting system. user ID is IN300***12******.
III. The Members who have cast their vote by remote e-voting prior to the AGM
may also attend the AGM but shall not be entitled to cast their vote again. b) For Members who holdshares in 16 Digit Beneficiary ID
demat account with CDSL. For example if your Beneficiary ID is
IV. The Company has engaged the services of M/s. National Securities Depository 12************** then your
Limited(NSDL) as the Agency to provide the remote e-voting facility. user ID is 12**************
V. The Board of Directors of the Company has appointed Shri Sachin Agarwal, a
Company Secretary in Practice of the Company Secretary Firm-M/s. Agarwal c) For Members holding shares in EVEN Number followed by Folio
S. & Associates and in his absence Ms.Karishma Singh of M/s. Agarwal S. & Physical Form. Number registered with the company
Associates as Scrutiniser to scrutinize the remote e-voting and voting at the
venue of the AGM through ballot paper in a fair and transparent manner and For example if folio number is 001***
he has communicated his willingness to be appointed and available for same and EVEN is 101456 then user ID
purpose. is 101456001***

187
(v) Your password details are given below: 2. After click on Active Voting Cycles, you will be able to see all the companies
"EVEN" in which you are holding shares and whose voting cycle is in active
(a) If you are already registered for e-Voting, then you can use your existing status.
password to login and cast your vote.
3. Select "EVEN" of company for which you wish to cast your vote.
(b) If you are using NSDL e-Voting system for the first time, you will need to
retrieve the 'initial password' which was communicated to you. Once 4. Now you are ready for e-Voting as the Voting page opens.
you retrieve your 'initial password', you need enter the 'initial password'
and the system will force you to change your password. 5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/
modify the number of shares for which you wish to cast your vote and click
(c) How to retrieve your 'initial password'? on "Submit" and also "Confirm" when prompted.
(i) If your email ID is registered in your demat account or with the 6. Upon confirmation, the message "Vote cast successfully" will be displayed.
company, your 'initial password' is communicated to you on your
email ID. Trace the email sent to you from NSDL from your mailbox. 7. You can also take the printout of the votes cast by you by clicking on the print
Open the email and open the attachment i.e. a .pdf file. Open the option on the confirmation page.
.pdf file. The password to open the .pdf file is your 8 digit client ID 8. Once you confirm your vote on the resolution, you will not be allowed to
for NSDL account, last 8 digits of client ID for CDSL account or modify your vote.
folio number for shares held in physical form. The .pdf file contains
your 'User ID' and your 'initial password'. B. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required
to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/
(ii) If your email ID is not registered, your 'initial password' is Authority letter etc. with attested specimen signature of the duly authorized
communicated to you on your postal address. signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to
(vi) If you are unable to retrieve or have not received the " Initial password" or have sachinag1981@gmail.com with a copy marked to NSDL's email ID-
forgotten your password: evoting@nsdl.co.in.

a) Click on "Forgot User Details/Password?"(If you are holding shares in C. It is strongly recommended not to share your password with any other person
your demat account with NSDL or CDSL) option available on and take utmost care to keep your password confidential. Login to the e-
www.evoting.nsdl.com. voting website will be disabled upon five unsuccessful attempts to key in the
correct password. In such an event, you will need to go through the "Forgot
b) “Physical User Reset Password?" (If you are holding shares in physical User Details/Password?" or "Physical User Reset Password?" option available
mode) option available on www.evoting.nsdl.com. on www.evoting.nsdl.com to reset the password.
(c) If you are still unable to get the password by aforesaid two options, you D. In case of any queries, you may refer the Frequently Asked Questions (FAQs)
can send a request at evoting@nsdl.co.in mentioning your demat account for Shareholders and e-voting user manual for Shareholders available at the
number/folio number, your PAN,your name and your registered address. download section of www.evoting.nsdl.com or call on toll free no.: 1800-
222-990 or send a request at evoting@nsdl.co.in.
(vii) After entering your password, tick on Agree to "Terms and Conditions" by
selecting on the check box. XII. Those who became Members of the Company after dispatch of the Notice but
on or before cut-off date may mail to NSDL at evoting@nsdl.co.in, requesting
(viii) Now, you will have to click on "Login" button. for user ID and password. On receipt of user ID and password, the details on
(ix) After you click on the "Login" button, Home page of e-Voting will open. step 2 in A above should be followed for casting of vote.

Details on Step 2 are given below: XIII. In case of any query/grievance, you may refer to the Frequently Asked Questions
(FAQs) and e-voting Manual available under the Help section of NSDL's e-
How to cast your vote electronically on NSDL e-Voting system? voting website www.evoting.nsdl.com or contactMr.MandarGaikwad,
Assistant Manager, National Securities Depository Limited, Trade World, 'A'
1. After successful login at Step 1, you will be able to see the Home page of e- Wing, 4th & 5th Floors, Kamala Mills Compound, Senapati Bapat Marg, Lower
Voting. Click on e-Voting. Then,click on Active Voting Cycles. Parel, Mumbai-400013 at telephone no. 91 22-24994200/91 22 24994559
or toll free No. 1800 222 990 or at email ID: evoting@nsdl.co.in

188
 ANNEXURE TO THE NOTICE
EXPLANATORY STATEMENT PURSUANT TO SECTION
102(1) OF THE COMPANIES ACT, 2013
Item No. 4 2013 and Articles of Association of the Company, he would hold office upto the date of
On nomination by the President of India vide Government's Order F.No. 1(10)/2015- the ensuing Annual General Meeting. The notice under Section 160 of the said Act has
BLA(Vol-III) dated 6th September, 2017, CA Kartar Singh Chauhan (DIN:07811175) was been received proposing the name of Shri Atul Srivastava as a candidate for the office of
appointed as an Additional Director of the Company with effect from 22nd September, Director of the Company.
2017. His tenure as Non-Official Independent Director is for a period of three years with Shri Atul Srivastava is a Mechanical Engineer from IIT, Kanpur and holds Post Graduate
effect from 22nd September, 2017 or until further orders, whichever is earlier. In terms of Diploma in Management with specialization in HR. He has over 33 years of experience in
the provisions of Section 161(1) of the Companies Act, 2013, CA Kartar Singh Chauhan HR matters, both at Corporate and Plant level, in dealing with diverse areas like HR
would hold office upto the date of the ensuing Annual General Meeting. The Company Policies, Manpower Planning, HRD/OD Interventions, Performance Management,
has received a notice in writing under Section 160 of the Act proposing the candidature Employee Engagement Initiatives and IR Management. Prior to joining as Director
of CA Kartar Singh Chauhan for the office of Director of the Company. (Personnel) of SAIL, Shri Srivastava held the position of Executive Director (P&A), Durgapur
CA Kartar Singh Chauhan obtained his Post Graduate Degree in Commerce from Steel Plant of the Company as Head of HR function. He has also successfully led Personnel
Chaudhary Charan Singh University, Meerut in 1987. He passed the CA Final examination and Administrative functions at Bokaro Steel Plant of the Company and also at its Corporate
in 1991 from the Institute of Chartered Accountants of India (ICAI) and became the Office.
Fellow Member of ICAI in 1996. His areas of specialisation include Audit, Taxation, Finance, Shri Atul Srivastava is not disqualified from being appointed as a Director in terms of
etc.and is presently practicing as a Chartered Accountant. He has also done Certificate Section 164 of the Act and has given her consent to act as a Director.
Course in Concurrent Audits of Banks and Certificate Course in Forex and Treasury Save and except Shri Atul Srivastava and his relatives, to the extent of their shareholding
Management, both from ICAI. He has presented various programs related to Finance & interest, if any, in the Company, none of the other Directors/ Key Managerial Personnel of
Income Tax on National Channel of Prasar Bharti. the Company/their relatives are, in any way, concerned or interested financially or
CA Kartar Singh Chauhan is not disqualified from being appointed as a Director in terms otherwise, in the Resolution set out at Item No.6 of the Notice.
of Section 164 of the Act and has given his consent to act as a Director. The Company The Board considers it desirable that the Company should continue to avail itself of his
has received a declaration from CA Kartar Singh Chauhan that he meets the criteria of services as a Director and recommends this Resolution for approval of the shareholders.
independence as prescribed under sub-section 6 of Section 149 of the Act. He is a
member of Stakeholders Relationship Committee. Item No. 7
Save and except CA Kartar Singh Chauhan and his relatives, to the extent of their On nomination by the President of India vide Government's Order No.6/2/2016-BLA
shareholding interest, if any, in the Company, none of the other Directors/ Key Managerial dated 3rd July, 2018, Shri Harinand Rai (DIN:08189837) was appointed as an Additional
Personnel of the Company/their relatives are, in any way, concerned or interested financially Director of the Company with effect from 1st August, 2018 subject to his re-appointment
or otherwise, in the Resolution set out at Item No.4 of the Notice. by the shareholders in the Annual General Meeting. His tenure as Director is for a period
of five years from 1st August, 2018 or till the date of his superannuation or until further
Keeping in view the vast expertise and knowledge of CA Kartar Singh Chauhan, the orders, whichever is earliest. He is liable to retire by rotation in terms of provision of the
Board considers it desirable that the Company should continue to avail itself of his services Companies Act, 2013. In terms of Section 161 of the Companies Act, 2013 and Articles
as a Director and recommends this Resolution for approval of the shareholders. of Association of the Company, he would hold office upto the date of the ensuing Annual
Item No. 5 General Meeting. The notice under Section 160 of the said Act has been received proposing
On nomination by the President of India vide Government's Order F.No. 1(10)/2015- the name of Shri Harinand Rai as a candidate for the office of Director of the Company.
BLA(Vol-III) dated 6th September, 2017, Prof. Narendra Kumar Taneja (DIN:07938062) Shri Harinand Rai is a Metallurgical Engineer from IIT, BHU. He has over 32 years of
was appointed as an Additional Director of the Company with effect from 22nd September, experience of working in the Company in different capacities at both Plant level at Bhilai
2017. His tenure as Non-Official Independent Director is for a period of three years with Steel Plant, Bhilai (BSP) and Durgapur Steel Plant, Durgapur (DSP) as well as at Corporate
effect from 22nd September, 2017 or until further orders, whichever is earlier. In terms Office. He has rich and varied experience in various functions of Plant Operations, Planning
of the provisions of Section 161(1) of the Companies Act, 2013, Prof. Narendra Kumar and Coordination for ensuring availability of raw materials at the Plants including Logistics.
Taneja would hold office upto the date of the ensuing Annual General Meeting. The Shri Harinand Rai is not disqualified from being appointed as a Director in terms of
Company has received a notice in writing under Section 160 of the Act proposing the Section 164 of the Act and has given his consent to act as a Director.
candidature of Prof. Narendra Kumar Taneja for the office of Director of the Company.
Save and except Shri Harinand Rai and his relatives, to the extent of their shareholding
Prof. Narendra Kumar Taneja, is a distinguished academician and is presently Vice- interest, if any, in the Company, none of the other Directors/ Key Managerial Personnel of
Chancellor of Chaudhary Charan Singh University, Meerut. He is a Post Graduate in the Company/their relatives are, in any way, concerned or interested financially or
Economics and Ph.D. He has over 35 years of experience in Research and Teaching. He otherwise, in the Resolution set out at Item No.7 of the Notice.
has to his credit several Research Papers published in national and international journals.
His area of specialization is Micro Economics, Industrial Economics, Development Theory The Board considers it desirable that the Company should continue to avail itself of his
& Policy and Indian Economy Problems & Policies. services as a Director and recommends this Resolution for approval of the shareholders.
Prof. Narendra Kumar Taneja is not disqualified from being appointed as a Director in Item No. 8
terms of Section 164 of the Act and has given his consent to act as a Director. The As informed in the previous years, your Company has taken up a massive Modernisation
Company has received a declaration from Prof. Narendra Kumar Taneja that he meets & Expansion programme of its Plants and also for augmentation of Raw Material supplies
with the criteria of independence as prescribed under sub-section 6 of Section 149 of from its own mines. The expansion programme has been decided to be funded through
the Act. He is a Member of the Nomination & Remuneration Committee of the Company. a mix of debt and equity. The Company has already spent about `67,432crore on its
Save and except Prof. Narendra Kumar Taneja and his relatives, to the extent of their expansion programme till 30th April, 2018. In order to part finance the expansion
shareholding interest, if any, in the Company, none of the other Directors/ Key Managerial programme as well as to convert short loans into medium and long term loans, your
Personnel of the Company/their relatives are, in any way, concerned or interested financially Company plans to borrow about ` 5,000 crore during the period of one year from the
or otherwise, in the Resolution set out at Item No.5 of the Notice. date of this Annual General Meeting or such other period as may be permitted under the
Companies Act, 2013 and other applicable laws.
Keeping in view the vast expertise and knowledge of Prof. Narendra Kumar Taneja, the
Board considers it desirable that the Company should continue to avail itself of his services On analysis of the various options of raising funds through borrowing in Domestic and
as a Director and recommends this Resolution for approval of the shareholders. International Market, it has been decided by the Board of Directors to raise the funds
through private placement of Secured Non-convertible Debentures / Bonds upto ` 5,000
Item No. 6 crore during the year.
On nomination by the President of India vide Government's Order No.6/3/2016-BLA The provisions of Section 42 of the Companies Act, 2013, read with Rule 14 of the
dated 12th March, 2018, Shri Atul Srivastava (DIN:07957068) was appointed as an Companies (Prospectus and Allotment of Securities) Rules, 2014, mandate the Company
Additional Director of the Company with effect from 12th March, 2018 subject to his to seek approval of shareholders by means of a Special Resolution for raising funds
re-appointment by the shareholders in the Annual General Meeting. His tenure as Director through private placement of non-convertible debentures/bonds. Accordingly, approval
is for a period of five years from 12th March, 2018 or till the date of his superannuation or of Shareholders for the resolution as set out in Item No.8 of the Notice is being sought to
until further orders, whichever is earliest. He is liable to retire by rotation in terms of borrow funds by offer or invitation to subscribe to Secured Non-convertible Debentures/
provision of the Companies Act, 2013. In terms of Section 161 of the Companies Act, Bonds for an amount upto `5,000 crore. This resolution would be valid for the period of

189
one year from the date of this AGM. The terms and conditions of Secured Non-convertible Pursuant to Section 148(3) of the Companies Act, 2013 read with Rule 14 of the
Debentures / Bonds shall be decided by the Board of Directors / Committee thereof or Companies (Audit and Auditors) Rules, 2014, the remuneration, as approved by the
any one or more Directors, as may be required. Board of Directors of the Company on the recommendation of the Audit Committee, is
The borrowings of the Company are in general required to be secured by mortgages / required to be subsequently ratified by the Members of the Company. Accordingly, the
charges / hypothecation or encumbrances on all or any of the movable or immovable Resolution for ratification of the fee of the Cost Auditors as set out at Item No.9 of the
properties of the Company. Consent of the members is being sought in terms of Section Notice is submitted for approval of the Shareholders.
180(1)(a) of the Companies Act, 2013 to enable the Company to create charge, The Board recommends the resolution for your approval.
hypothecate, mortgage, pledge on any movable, immovable properties of the Company None of the Directors and/or Key Managerial Personnel of the Company and / or their
both present and future and on the whole or substantially the whole of the undertaking or relatives is concerned or interested in the resolution.
undertakings of the Company and wherever situated and to authorize the Board to take
necessary action in this regard.
The Board recommends the Resolution for your approval as Special Resolution. By order of the Board of Directors
None of the Directors and /or Key Managerial Personnel of the Company or their relative(s)
is / are concerned or interested in the Resolution set out at Item No. 8 of the Notice.
Item No.9
The Board of Directors of the Company, on the recommendation of the Audit Committee, (M.C. Jain)
has considered and approved the appointment of M/s. R.J. Goel & Co., New Delhi (for ED (F&A) and Secretary
Bhilai Steel Plant, Durgapur Steel Plant and IISCO Steel Plant), M/s. Shome & Banerjee,
Kolkata (for Bokaro Steel Plant and Rourkela Steel Plant), M/s. Sanjay Gupta & Associates, Place: New Delhi
New Delhi (for Alloy Steels Plant, Salem Steel Plant and Visvesvaraya Iron and Steel Dated: 13th August, 2018
Plant) as the Cost Auditors of the Company for the Financial Year 2018-19 at a remuneration Registered Office:
of `9,75,000/- plus taxes as applicable and reimbursement of Daily Allowance, travelling Ispat Bhawan, Lodi Road, New Delhi-110003.
expenses and out of pocket expenses. In addition, M/s Sanjay Gupta & Associates have CIN: L27109DL1973GOI006454
been designated as Lead Cost Auditor for XBRL conversion and filing of Consolidated
Cost Audit Report of the Company at an additional fee of `35,000/- plus taxes as
applicable.

Details of Directors seeking re-appointment in forthcoming Annual General Meeting furnished in terms of SEBI Regulations:
Name of the Director Dr. G. Vishwakarma

Date of Birth 18th January, 1960

Date of Appointment 31st December, 2015

Expertise in Specific functional areas Projects, Business Planning

Qualifications BE(Mech.), ME(Env.Sc.), PG Diploma in Business Management,

Ph.D (Project Management), PGDADR

List of Companies in which outside Directorship is held. International Coal Ventures Pvt. Ltd. (ICVL)

Chairman/Member of the Committees of the Board of the Chairman of CSR Committee in ICVL
Companies on which he is a Director.

190
 STEEL AUTHORITY OF INDIA LIMITED
CIN: L27109DL1973GOI006454
Registered Office: Ispat Bhawan, Lodi Road, New Delhi - 110 003
Tel: +91 11 24367481, Fax: +91 11 24367015, E-mail: investor.relation@sailex.com, Website: www.sail.co.in

ATTENDANCE SLIP
46th Annual General Meeting to be held on Thursday, 20nd September, 2018 at 10.30 hours

NAME OF THE ATTENDING MEMBER (IN BLOCK LETTERS)

*Folio No.
DP ID No. / Client ID No.
No. of Shares Held
NAME OF PROXY (IN BLOCK LETTERS, TO BE FILLED IN
IF THE PROXY ATTENDS INSTEAD OF THE MEMBER)

I, hereby record my presence at the 46th Annual General Meeting of the Company to be held on Thursday, 20thSeptember, 2018 at NDMC Indoor Stadium, Talkatora Garden,
New Delhi-110001.

*Applicable in case of Shares held in Physical Form

Member's/Proxy's Signature ____________________________________________

NOTE:
1. The attendance slip should be signed as per the specimen signature registered with the R&TA/Depository Participant (DP). Such duly completed and signed Attendance Slip should
be handed over at the registration counter(s) at the venue against which R&TA will issue admission card.
2. Entry to the hall will be strictly on the basis of admission card as provided by R&TA.
3. Members in person/Proxy holders may please carry photo-ID card for identification/verification purposes.
4. Shareholder(s) present in person or through registered proxy shall only be entertained.
5. Briefcase, mobile phone, bag, eatables, helmets and other belongings will not be allowed to be taken inside the venue of the meeting for security purposes and shareholder(s)/proxy
holder(s) will be required to take care of their belonging(s).
6. No gifts will be distributed at the Annual General Meeting.
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

STEEL AUTHORITY OF INDIA LIMITED

CIN: L27109DL1973GOI006454
Registered Office: Ispat Bhawan, Lodi Road, New Delhi - 110 003
Tel: +91 11 24367481, Fax: +91 11 24367015, E-mail: investor.relation@sailex.com, Website: www.sail.co.in

PROXY FORM
[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]
Name of the Member(s)
Registered address
Folio No./DP ID-Client ID
Email ID
I/We, being the member(s) of ……..........................................................................................................................….. shares, hereby appoint:

1.Name: ........................................................................................................ Address: ..............................................................................................................................................

E-mail Id: .................................................................................................................................................................. Signature: .............................................................. , or failing him
2.Name: .......................................................................................................... Address: .................................................................................................................................................
E-mail Id: ................................................................................................................................................................. Signature: ............................................................. , or failing him
3.Name: .............................................................................................................. Address: ........................................................................................................................................................
E-mail Id: ...................................................................................................................................................................Signature: ...................................................................................
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 46th Annual General Meeting of the Company to be held on 20th September, 2018 at 1030 hours at
NDMC Indoor Stadium, Talkatora Garden, New Delhi-110001 and at any adjournment thereof in respect of such resolutions as are indicated below:
S.No. Resolutions
Ordinary Business
1. To receive, consider and adopt the (i) the Audited Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2018 together with Reports of the
Board of Directors and Auditors thereon.
(ii) the Audited Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2018 and the Report of the Auditors thereon.
2. To appoint a director in place of Dr. G. Vishwakarma (DIN:07389419), who retires by rotation at this Annual General Meeting and is eligible for re-appointment.
3. To fix the remuneration of the Auditors of the Company appointed by the Comptroller & Auditor General of India for the Financial Year 2018-19.
Special Business
4. To appoint CA Kartar Singh Chauhan (DIN:07811175) as an Independent Director of the Company.
Please
5. To appoint Prof. Narendra Kumar Taneja (DIN:07938062) as an Independent Director of the Company.
affix
6. To appoint Shri Atul Srivastava (DIN:07957068) as a Whole-time Director of the Company.
`1
7. To appoint Shri Harinand Rai (DIN:08189837) as a Whole-time Director of the Company.
Revenue
8. To obtain consent for Borrowings upto `5,000 crore through private placement of Non-Convertible Debentures/Bonds and creation of charge on Stamp
the assets of the Company.
9. To ratify Remuneration of Cost Auditors of the Company for the Financial Year 2018-19.

Signed this ………...............................................day of ………...................................................……........2018

Signature of Member(s).........................................................................................................................................
Signature of proxy holder(s) ....................................................................................................................................

NOTE:
This Proxy Form in order to be effective should be duly completed and deposited at the191
Registered Office of the Company at Ispat Bhawan, Lodi Road, New Delhi-110003 not less
than 48 hours before the commencement of the Annual General Meeting.
 FORMAT FOR FURNISHING THE BANK DETAILS, PAN, EMAIL ID, ETC.

To
MCS Share Transfer Agent Limited
Unit : Steel Authority of India Limited
F-65, Okhla Industrial Area, phase-I,
New Delhi - 110020

Dear Sir,

I/We, give my/our consent to update the following details in your records to effect payments of dividend or sending other communications by electronic means in
compliance with the circular(s) issued by SEBI for equity shares of Steel Authority of India Limited.

FOLIO NO. :__________________________________________________________________________________________________________________

NAME OF THE FIRST / SOLE HOLDER :______________________________________________________________________________________________
BANK'S NAME :______________________________________________________________________________________________________________
BRANCH'S NAME & ADDRESS :___________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________________
ACCOUNT NO. :______________________________________________ACCOUNT TYPE (SB / CURRENT) :_______________________________________
IFSC CODE : _______________________________________________ MICR CODE :______________________________________________________
EMAIL ID : ________________________________________________ PHONE NO. :_______________________________________________________

PARTICULARS NAME OF SHAREHOLDER(S) PAN

FIRST / SOLE SHAREHOLDER

1ST JOINT SHAREHOLDER

2ND JOINT SHAREHOLDER

Signature of 1st Shareholder Signature of 1st Joint Shareholder Signature of 2nd Joint Shareholder

Date :______________________
Place:______________________

Encl : Original cancelled cheque leaflet or attested copy of bank pass book showing name of account holder and self-attested copy of PAN Card(s).

192