Annual Report Analysis (SAIL)

8/2/2019 Annual Report Analysis (SAIL)

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Directors message

The company increased production of value added

steel and achieved the saleable steel production of

12.9 MT representing full capacity utilization.

The company achieved a turnover of 47,041 crore

during 2010-11

The company has also undertaken expansion andmodernization plan with focus on higher production

of value added products.


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Money in the business

Share capital has remained the same from

previous year

Reserves and surplus increased by 3752.27cr

Secured loans increased by 4058.01cr

403.77cr worth Unsecured loans cleared

Totally funds increased by 7483.16cr


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Employing the capital

Net Fixed assets increased by 8740.08cr

Investments worth 16.01cr were purchased

10621.46 worth fixed assets purchased

Decrease in working capital 1272.23cr

50.87cr worth assets sold

Loss incurred on the sale

Increasing its fixed assets by 5000cr to 8500cr

every year from 2008


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Profitability

Increase % Proportion to sales

Gross profit 46%(09), 49%(10), 45%(11)

Operating costs 12711.30, 11337.47, 12150.40 26% (09), 25% (10), 25.8% (11)

Net profit 9399cr, 10132cr, 7194cr 19% (09), 23% (10), 15.3% (11)

Operating profit 10732.45, 10,823.90, 9208.22 22% (09), 24.6% (10), 19.5% (11)

2009 2010 2011

Sales 48738 43935 47041Profit after Tax 6170 6574 4905

In crores


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Cash and fund flow analysis

Liquidity positions over a period current ratios of.. 3.31 in 2011 3.54 in 2010

2.80 in 2009

Dividend paid per share..

2.40 in 2011

3.30 in 2010

2.60 in 2009

Increase in value of assets(purchased and sold)

Dividend paid..991cr in 2011

Working capital decreased because:

Debtors decreased

Current liabilities increased


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Firm has been raising loans(debts) to meet itsneed of funds and also paying off their previous

debts on time periodically

It has also been increasing Shareholders fund bytransferring a significant part of income to

reserves and surplus

In 2011 out of the total PAT 29679.03cr,3752.27cr were transferred to reserves and

surplus

Company has also reduced on their investment inlong term investments


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Investment perspective

Sail has an Return on Investment of12.2% on2011 as compared to 19.77% on 2010

Return on shareholders fund is 13.23% on2011 as compared to 19.73% on 2010

Earnings per share..

11.87 in 2011

16.35 in 2010

14.94 in 2009


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Highlights of 2011

Turnover of47,041cr compared to 43,935cr last year,showing 7% year on year growth

Total dividend payout of24% (2.40 per share),

including interim dividend of12%

As on 31.3.2011, company's cash reserves in termdeposits stood at over 17,000cr

The company's total borrowings stood at 20,165cr

taking its debt-equity ratio to 0.54:1

Net worth as on 31.3.11 was 37,069cr compared to

33,317cr last year

Capex touched a record 11,280cr, 6% higher than the

previous year


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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, including leasehold 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, 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


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Auditors Certificate

To The Members of Steel Authority of India Limited

We have audited the attached Balance Sheet of STEEL AUTHORITY OF INDIA LIMITED, as on 31st March 2011,the Profit & Loss Account and the Cash Flow Statement of thecompany for the year ended on that date annexed thereto, inwhich are incorporated the accounts of Plants, Units,Branches and other Offices audited by the Branch Auditors inaccordance with the letter of appointment ofComptroller &Auditor General of India. These financial statements are theresponsibility of the company's management. Ourresponsibility is to express an opinion on these financialstatements based on our audit.


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Annual Report Analysis (SAIL)