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Board of Directors .

 The company achieved a turnover of 47.Directors message  The company increased production of value added steel and achieved the saleable steel production of 12. .041 crore during 2010-11  The company has also undertaken expansion and modernization plan with focus on higher production of value added products.9 MT representing full capacity utilization.

01cr ‡ 403.16cr .77cr worth Unsecured loans cleared ‡ Totally funds increased by 7483.27cr ‡ Secured loans increased by 4058.Money in the business ‡ Share capital has remained the same from previous year ‡ Reserves and surplus increased by 3752.

87cr worth assets sold ‡ Loss incurred on the sale ‡ Increasing its fixed assets by 5000cr to 8500cr every year from 2008 .46 worth fixed assets purchased ‡ Decrease in working capital 1272.Employing the capital ‡ Net Fixed assets increased by 8740.08cr ‡ Investments worth 16.23cr ‡ 50.01cr were purchased ‡ 10621.

47. 25.823.45.40 9399cr. 19.5% ( 11) 2011 47041 4905 Proportion to sales . 45%( 11) 12711.3% ( 11) 22% ( 09). 10. 10132cr.6% ( 10). 24. 49%( 10). 15.22 2009 Sales Profit after Tax 48738 6170 2010 43935 6574 26% ( 09).90. 25% ( 10). 11337. 9208. 12150.Profitability In crores Increase % Gross profit Operating costs Net profit Operating profit 46%( 09).8% ( 11) 19% ( 09).30. 7194cr 10732. 23% ( 10).

.54 in 2010  2..40 in 2011  3.30 in 2010  2.  3.Cash and fund flow analysis ‡ Liquidity positions over a period current ratios of..80 in 2009 ‡ Dividend paid per share.60 in 2009 ‡ Increase in value of assets(purchased and sold) ‡ Dividend paid.31 in 2011  3.991cr in 2011 ‡ Working capital decreased because:  Debtors decreased  Current liabilities increased .  2.

03cr.27cr were transferred to reserves and surplus ‡ Company has also reduced on their investment in long term investments . 3752.‡ Firm has been raising loans(debts) to meet its need of funds and also paying off their previous debts on time periodically ‡ It has also been increasing Shareholders fund by transferring a significant part of income to reserves and surplus ‡ In 2011 out of the total PAT 29679.

 11.94 in 2009 .35 in 2010  14.2% on 2011 as compared to 19.87 in 2011  16..73% on 2010 ‡ Earnings per share.23% on 2011 as compared to 19.Investment perspective ‡ Sail has an Return on Investment of 12.77% on 2010 ‡ Return on shareholder s fund is 13.

40 per share).317cr last year ‡ Capex touched a record 11. including interim dividend of 12% ‡ As on 31.Highlights of 2011 ‡ Turnover of 47.3.069cr compared to 33.041cr compared to 43. 6% higher than the previous year .935cr last year.2011.165cr taking its debt-equity ratio to 0. showing 7% year on year growth ‡ Total dividend payout of 24% (2. company's cash reserves in term deposits stood at over 17.11 was 37.280cr.3.000cr ‡ The company's total borrowings stood at 20.54:1 ‡ Net worth as on 31.

stores & spares and finished/semi-finished products (including process scrap) are valued at lower of cost and net realisable value of the respective plants/units . including leasehold land.Notes ‡ The financial statements are prepared under the historical cost convention on accrual basis of accounting ‡ In preparing the financial statements in conformity with accounting principles generally accepted in India ‡ Fixed assets are stated at cost of acquisition less depreciation ‡ Expenditure on development of land. is capitalized as part of cost of land ‡ Cost includes all identifiable expenditure including trial-run expenses ‡ Depreciation is provided on straight-line method at the rates specified in Schedule XIV to the Companies Act. 1956 ‡ Long-term investments (including investments in subsidiary companies and joint ventures) are carried at cost ‡ Raw materials.

Branches and other Offices audited by the Branch Auditors in accordance with the letter of appointment of Comptroller & Auditor General of India. as on 31st March 2011. Units. the Profit & Loss Account and the Cash Flow Statement of the company for the year ended on that date annexed thereto. Our responsibility is to express an opinion on these financial statements based on our audit. These financial statements are the responsibility of the company's management.Auditor s Certificate To The Members of Steel Authority of India Limited We have audited the attached Balance Sheet of STEEL AUTHORITY OF INDIA LIMITED. . in which are incorporated the accounts of Plants.

An audit includes examining. .We conducted our audit in accordance with the auditing standards generally accepted in India. We believe that our audit provides a reasonable basis for our opinion. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. evidence supporting the amounts and disclosures in the financial statements. as well as evaluating the overall financial statement presentation. An audit also includes assessing the accounting principles used and significant estimates made by the management. on a test basis.

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