PROFIT AND LOSS ACCOUNT : BUDGET 2007-2008

(Rs. In
Lakhs)
2005-2006 2006-2007 Budget
Actual APP Apr-Dec Year
INCOME

Sales:
Direct 493863 506129 510084 709922
Stockyard 533846 506326 390983 519134
Exports 52791 61110 33877 62343
Export Incentives 930 1399 971 1608
Secondary Sales 40297 37373 37693 51577

TOTAL SALES 1121727 1112337 973608 1344584

Inter Plant Transfers 16925 8199 25788 28266

Internal Consumption 8886 9856 8180 9246

GROSS SALES 1147538 1130392 1007576 1382096

Accretion/depletion to stock 34842 7665 13248 5454

Interest earned 1354 983 1098 1198

Provision no longer
required written back 1067

Other revenues 24392 7043 16477 8466

TOTAL INCOME 1209193 1146084 1038399 1397214

EXPENDITURE

Raw Materials --- Coal 323001 334021 242926 348780

---others 98429 117964 79412 126105

Total 421430 451985 322338 474885

Employee remuneration & 102895 108871 86551 121252

Benefits
Stores & Spares Consumed 89648 92871 71340 121958
Power &Fuel 80169 86571 58378 84125
Repairs & maintenance 10500 10631 8427 15135
Excise Duty 158687 148587 138374 184238
Freight outwards 23502 27226 16749 20438
Other Expenses & Provisions 32320 29433 22210 33379
Adjustment pertaining to earlier
years 14
Share of expenditure over
income-
Corporate office 6278 8700 5682 9000
CMO 7984 8849 5711 9133
CCSO 206 408 125 378

Gross expenditure 933633 974132 735885 1073921

Less:Transfer to Inter A/C 37047 36155 29208 44384

Net Expenditure 896586 937977 706677 1029536

GROSS MARGIN 312607 208106 331722 367676

Cost Control Benefits

Revised Gross Margin 312607 208106 331722 367676

Depreciation 20437 21793 18460 24237

Interest 14063 12017 8373 7603
Net Profit 278107 174295 304889 335837

1. CASH-FLOWS:-
Cash-inflows are by means of sales and including both saleable steel & coal
chemicals & interest earned & other income. This will include gross sales value, freight
& sales tax. Cash-outflows will take into account the freight outward as it appears in the
 inflows. Some of the expenses details of P&L which are in the nature of provisions under
different elements will be excluded from cash-outflows.

CASH INFLOWS : BUDGET 2007-2008

Rs. Lakhs

PARTICULARS TOTAL Plant IUCA

Direct Sales By 694842 694842
CMO

Stockyard Sales 519134 519134

Export Sales 62343 62343

IPT 31614 31614

Export Incentives 1608 1608

Plant Sales 59583 59583

BP & Secondary 53124 53124

Sales

Interest Earned 1198 724 474

Other Revenue 8466 7866 599

TOTAL CASH 1431912 121298 1310615
AVAILABILITY

PRODUCTION & TEHNO-ECONOMIC:-

This section reflects the quantitative details of production/ techno-economics.
These details are supplied by PPC & entered in to respective formats. They form the basis
of financial budget.
 PRODUCTION PLAN : IRON &STEEL PRODUCTS :2007-2008

Particulars Unit Installed 2005- 2006-2007 Budget

capacity 2006 Budget Apr- Year
actuals Dec 2007-2008
Average
Oven
Pushing
Battery 1-8 No/Day 449 420 468
412
Battery 9-10 No/Day 160 160 162 163
BF 000 T 3303 3073 2910 3144
Coke(Dry) 2164
Sinter: SP 000 T 2040 1077 1100 1100
#1 622
Sinter: SP # 000 T 3137 2701 2700 2700
2 1883
Sinter : SP # 000 T 3155 3200 3300
3 2415
Total Sinter 000 T 5177 6933 7000 7100
4920
Hot Metal 000 T 4080 5178 5300 3582 5700
Pig Iron 000 T 630 128 220 30 323
Ingot Steel 000 T 2500 2648 2600 2600
(SMS #1) 1806
Cast Steel 000 T 1425 2405 2400 1772 2700
(SMS # 2)
Total Crude 000 T 3925 5054 5000 5300
Steel 3578
Cast Slab 000 T 1180 1417 1400 1675
1010
Cast Bloom 000 T 245 989 1000 1025
762
Total Cast 000 T 1425 2405 2400 1772 2700
Ingots rolled 000 T 2500 2585 2600 2600
1806
 Blooms 000 T 2149 2293 2301 2301
(BBM) 1706
Billets 000 T 1501 2019 2085 2030
1498
Saleable
Steel
Blooms : 000 T Total 158 100 132 165
BBM
Blooms 000 T Semis 22 12 30 35
:CCS
Billets 000 T 553 773 929 730
527
Slabs 000 T 92 74 114 205
Total semis 000 T 553 1044 1115 1135
803
Rails 000 T 500 8555 865 895
639
Heavy 000 T 250 76 60 45 45
structurals
Rounds 000 T 225 177 240 280
167
Light 000 T 275 406 350 277 340
Structurals
Wire rods 000 T 400 607 520 387 620
Plates 000 T 950 1121 1150 1250
814
Total 000 T 2600 3241 3185 2329 3430
finished
Steel

Total 000 T 3153 4286 4300 4565

Saleable 3132
steel

2. BUDGET YEAR PROFIT ESTIMATION:-

Quantitative details of PPC/CMO/ITD/CO are correlated with rates /values from
different sections of finance for estimating various income & expenditure details of P&L.
Escalation are buildup o both income & expenses as per guidelines of corporate office.
All major assumptions are considered as per these guidelines.
3. WORKING CAPITAL:-
It contains the details of net block as well as working capital estimation.
Comparative details of previous year actual, current year budgeted figures & up to 3 rd quarter
figures are reflected for the comparison purposes. Budget year details of gross block & net
block are estimated with the help of asset section & depreciation schedule.
For current asset estimation inventory from a major part, finished product inventory is the
summation of stock at plant & stockyard. Most of the other figures are extrapolated based on
up to 3rd quarter trend of the current year, adjusted to some extent based on latest account
closing of the month & other vital of budget especially with regards to provision in the
salaries & some major liabilities. Each element of salaries is calculated in the separate file
month-wise.

6. VARIANCES:-
Department-wise cost variance between standard and monthly cost per unit of output
shall be worked out for all the major products & services for which the costs are ascertained.

It is calculated:
Variance of forthcoming Year Budget w.r.t Current year Budget
Variance of forthcoming Year Budget w.r.t Current Year likely performance.

7. MONTH WISE BREAKUP TARGETS:-

With regards to NSR/rates of inputs, it is taken as same throughout the year and equal
to those of annual rates. Most of the month-wise quantitative details of inputs and production
are provided by PPC which are multiplied by rates to arrive at the values. For sales direct
sales/plant sales taken as % of total sales. Balancing quantity forms stockyard sales. Some of
the expenses & income is equally divided in to months like other income, interest & repairs
and maintenance.
 SAIL/BHILAI Steel Plant

Products Stockyard Sales Export Sales Total Sales

Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount

000T Rs/T RS.Lakhs 000T Rs/T RS.Lakhs 000T Rs/T RS.Lakhs

Pig Iron 323 15608 50415
Ingots

BBM Blooms 69 23402 16148 165 20721 34190

Billets 312 21542 67210 100 18844 18844 730 20519 149790
CCS Slab 1006 25 18448 4612
CCS Bloom 1805 35 16120 5642
Total Semis 381 21879 83358 100 18844 18844 955 20339 194234

Rails 75 26256 19692 5 36976 1849 890 36069 321016

Heavy Structurals 22 34699 7634 39 33474 13055
Light Stucturals 197 26898 52988 1 21526 215 337 25562 86144
Rounds 144 27568 39560 0.5 21526 108 277 25457 70516
Wire Rods 354 26966 95323 25.5 21567 5500 618 25794 159410
Plates 641 34412 220579 140 25591 35827 1220 32509 396609

Total Finished 1432 30431 435776 172 25290 43499 3381 30960 1046750
Total Saleable Steel 1813 28634 519134 272 22920 62343 4336 28620 1240984

Ammonium
Sulphate
Turn over Discount
Conversion Revenue
Total Sales 519134 62343 1291399
Products Direct sales by CMO Direct sales by Plant Direct Sales Total

Quantity Rate Amount Quantity Rate Amount Quantity Rate Amount

000T Rs/T RS.Lakhs 000T Rs/T RS.Lakhs 000T Rs/T RS.Lakhs

Pig Iron 323 15608 50415 323 15608 50415

Ingots

BBM Blooms 46 21700 9982 50 16121 8060 96 18794 18042

Billets 208 20477 42592 110 19222 21144 318 20043 63736
CCS Slab 25 18448 4612 25 18448 4612
CCS Bloom 16121 35 16121 5642 35 16120 5642

Total Semis 254 20698 52574 220 17935 39458 474 19416 92032

Rails 775 37900 293722 35 16438 5753 810 36972 299475

Heavy Structurals 15 33625 5044 2 18857 377 17 31888 5421
Light Stucturals 132 23934 31592 7 19265 1349 139 23699 32941
Rounds 96 24709 23720 37 19265 7128 133 23194 30848
Wire Rods 236 24559 57959 3 20938 628 239 24513 58587
Plates 427 32096 137048 12 26293 3155 439 31937 140203
Total Finished 1681 32664 549085 96 19156 18390 1777 31934 567475
Total Saleable Steel 1935 31093 601659 316 18306 57848 2251 29298 659507
Ammonium
Sulphate
Turnover Discount
Conversion Revenue
Total Sales 2258 28878 652074 316 18306 57848 2571 27580 709022