MANAGEMENT DISCUSSION AND ANALYSIS REPORT

In terms of the Regulation 34(2)(e) of SEBI (Listing Obligations Europe’s economy avoided ending the CY 2023 in a recession
and Disclosure Requirements) Regulations, 2015, the by the narrowest of margins. Over the whole of 2023, GDP
Management of Steel Authority of India Limited (SAIL) rose by 0.5%, both in the Eurozone and the EU. Europe
presents its Analysis Report covering the performance and economy was affected by falling Government and household
outlook of the Company. expenditure amid the negative effects of the energy crisis,
inflation and the Ukraine war.
A. INDUSTRY STRUCTURE & DEVELOPMENTS
However, despite the strong expectations, the US economy
World Economic Environment grew by just 1.6% in Q1’24, as consumer and Government
In the CY 2023, the world economy managed to defy the spending cooled amid a sharp increase in inflation. In
odds such as surprise Gaza attack on Israel, Houthi attacks contrast, buoyed by the Government’s support, China’s
on merchant vessels, high interest rates as well as continuing economy started to recover and grew by 5.3% in Q1’24,
Russia-Ukraine war. World GDP grew by 3.2% in 2023, faster than expected. The Government of China announced
thus averting the threat of hard landing. As per the OECD, steps to address the near collapse of its mammoth property
a stronger than expected US economy helped to keep sector, by allocating billions of Dollars to support it. However,
the global slowdown in check, which grew at faster than China’s economy has performed inconsistently during the
expected rate of 2.5% in 2023. Although economists had year and is struggling to sustain itself at uniform rate. Euro
been warning of a potential slowdown, the US economy zone economy also rebounded in Q1 and grew by 0.5% as
proved resilient than expected. The growth was driven by Germany returned to growth, while inflation steadied.
robust household and Government spending. As per the IMF World Economic Outlook July-2024, global
On the other hand, the Chinese economy stumbled in 2023. growth expectations for 2024 are steady, while warning of
When China had abandoned its Covid controls in 2022, inflation risks and trade tensions ahead. IMF expects the
economists had anticipated its economy would recover world economy to grow by 3.2% in 2024, unchanged from
quickly. However, it did not happen. China faced challenges its April forecast. For 2025, it expects global growth of 3.3%.
such as deepening property crisis, deflationary risks, IMF cautioned that risks to inflation have increased, thereby,
subdued demand and joblessness. China’s economy grew by increasing the prospect of interest rates staying elevated
5.2% in 2023, though higher than the official 5% target, but for longer, in the context of escalating trade tensions and
the concerns persisted. increased policy uncertainty.

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 World Economic Outlook Projections
(Real GDP Growth Percentage Change)
Year Over Year
Actual Projections
2023 2024 2025
World Output 3.3 3.2 3.3
Advanced Economies 1.7 1.7 1.8
United States 2.5 2.6 1.9
Euro Area 0.5 0.9 1.5
Japan 1.9 0.7 1.0
Emerging Market and Developing Economies 4.4 4.3 4.3
China 5.2 5.0 4.5
India 8.2 7.0 6.5
Brazil 2.9 2.1 2.4
Russia 3.6 3.2 1.5

Source: IMF World Economic Outlook Update, July’2024 As per Economic Survey 2023-24, India’s GDP growth in FY
2024-25 is projected to be between 6.5% to 7.0%. RBI stated
While world growth appears stable, IMF lowered projections that India was at the threshold of a “major structural shift” in its
for the United States and Japan. US growth in 2024 was growth trajectory. Further, the Country was moving towards
downgraded to 2.6%, 0.1 percentage points below April’s a path where yearly 8% GDP growth could be sustained for
forecast, due to a “slower-than-expected start to the year.” a longer term. RBI also projected that the economy would
Japan’s economy was seen expanding 0.2 percentage grow at 7.2% in FY 2024-25. IMF has increased India’s growth
points less than expected, by 0.7% this year, mainly due to projection for 2024 to 7%, which is 20 basis points higher
temporary supply disruptions and weak private investment than its April estimate, on account of improved prospects for
in the first quarter. private consumption, especially in rural areas. As per the S&P
Global Market Intelligence, India is likely to overtake Japan
The Euro area, meanwhile, is showing signs of recovery with and Germany to become the world’s third-largest economy
relatively strong services activity, although manufacturing with a GDP of US$ 7.3 trillion, by 2030.
shows weakness. China and India are expected to power India’s merchandise exports during FY 2023-24 were US$
activity in Asia, with China’s 2024 forecast revised up to 5.0% 437.06 bn., down by 3.1% as compared to previous FY, mainly
on a private consumption rebound and strong exports. due to global headwinds. India’s Services exports during
FY 2023-24 were US$ 339.62 bn., up by 4.4%. The services
Indian Economic Environment
exports are growing fast and are expected to overtake
India’s economy during FY 2023-24, presented a picture merchandise exports in the next five years on the back of
of resilience, supported by strong macro-economic above-par growth.
fundamentals. India’s GDP grew by solid 8.2% in FY 2023-24 As per Federation of Automobile Dealers Associations (FADA),
as compared to the growth rate of 7% in FY 2022-23. This India’s total automobile sales during FY 2023-24, were 2.45
remarkable GDP growth rate is the highest among the major crore nos., which is an increase by commendable 10.29%
economies of the world. Earlier, Government estimates had over the previous year. All the sub-sectors viz. 2 Wheeler, 3
placed GDP growth for FY 2023-24 at 7.6%. Manufacturing Wheeler, Passenger Vehicle, Tractor and Commercial Vehicle,
sector witnessed a significant growth of 9.9% in the FY registered high positive growth figurers during the year.
2023-24. In addition to this, lower inflation also played a key In addition to this, BSE Sensex closed at a record 79,032 mark
role in the robust GDP growth number. Retail inflation or as on 30th June, 2024, clearly signifying investors’ confidence
the Consumer Price Index (CPI) in June’24 was 5.08% and is in the strength of the Indian economy and positive
expected to remain below or close to 5.0% in the remaining sentiments on the India’s future economic prospects.
months of 2024-25 (Source: SBI Research). India’s Index of Industrial production during FY 2023-24
was up by 5.8% as compared to a growth of 5.2%, recorded
during the previous year.

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Government of India (GoI) continued to lay emphasis on the Top 10 Crude Steel Producing Countries
infrastructure development and in the Interim Union Budget Rank Country 2023 (MT) 2022 (MT) % Change
for FY 2024-25, GoI increased the outlay for infrastructure
1 China 1019.1 1019.1 0.0
development by 11.1% to more than ` 11 lakh crore. As per
2 India 140.2 125.4 11.8
CRISIL, India is likely to spend nearly ` 143 lakh crore on
3 Japan 87.0 89.2 (-)2.5
infrastructure between fiscals 2024 and 2030.
4 United States 80.7 80.5 0.2
World Steel 5 Russia 75.8 71.7 5.6

Global Crude Steel production during CY 2023 stood at 1888.2 6 S. Korea 66.7 65.8 1.3
MT, up by 0.5%, over CY2022. China’s Crude Steel production 7 Germany 35.4 36.9 (-)3.9
was 1019.1 MT, constant at level of CY 2022. India, along with 8 Turkey 33.7 35.1 (-)4.0
Russia, South Korea and Iran were the major steel producing 9 Brazil 31.9 34.1 (-)6.5
countries which showed positive growth in steel production 10 Iran 31.1 30.6 1.8
in 2023. China produced about 54% of world Crude Steel 11 World 1888.2 1878.5 0.5
in 2023. However, there has been some moderation in the
Source: World Steel Association
China’s Crude Steel production, which came down by 1.4% in
the first five months of 2024 to 438.6 MT. Due to falling steel prices, profitability of steel companies
worldwide in CY 2023 was lower as compared to CY 2022.

Outlook for Steel Industry

The World Steel Association in its Short Range Outlook
April’24, has forecast that the World Steel demand will grow
by 1.7% in 2024, to reach 1,793 MT. Steel demand is forecast
to grow by 1.2% in 2025 to reach 1,815 MT. WSA observed
that in 2023 tighter credit conditions and higher costs led to
a sharp slowdown in housing activity in most major markets
and have hampered manufacturing sector globally.
Steel Demand Forecasts SRO April’24
Finished steel products

MT y-o-y % growth rates

2023 2024 2025 2023 2024 2025
Global steel prices witnessed a downward trend in 2023 due
(f) (f) (f) (f)
to poor demand and rising supplies. Due to weak selling
EU(27) & UK 136.8 140.7 148.1 (-)10.0 2.9 5.3
prices and strong input prices, many European companies are
Other Europe 44.3 47.9 46.1 13.5 8.1 (-)3.7
facing weak financial condition. China’s export prices of HRC
Russia & CIS 56.1 58.4 58.9 8.6 4.1 0.8
went down steeply during FY 2023-24 due to falling domestic
USMCA 131.7 133.6 136.2 (-)1.0 1.4 1.9
prices and continued weakness of overseas demand. The
Central and 45.7 45.5 46.8 0.9 (-)0.5 2.8
Chinese steel industry is suffering from the impact of a severe
S. America
property slump, which has led to a sharp decline in domestic
Africa 35.0 36.9 38.5 (-)1.7 5.4 4.4
steel demand and fall in prices. This has led to increase in
Middle East 54.9 57.2 58.7 (-)0.4 4.1 2.6
exports of steel from China, with finished steel exports in
Asia and 1258.5 1273.1 1281.9 (-)1.0 1.2 0.7
2023 being 90.26 MT, up by 36.2% as compared to previous Oceania
year. Further, in H1 of 2024, China’s steel exports were 53.4 World 1763.0 1793.1 1815.2 (-)1.1 1.7 1.2
MT, up by 24% as compared to same period in previous year.
As per CISA, China’s apparent consumption of Crude Steel European steel companies are making accelerated efforts
has peaked and is expected to come down to 910 MT in to shift towards green steel production and the respective
Governments are extending huge financial supports in
2025. Amid elevated steel production but sluggish domestic
their efforts. Tata Steel UK will close the BF-BoF based steel
demand, Chinese steel exports are expected to continue to production at its Port Talbot steelworks and install new EAFs
rise in 2024. by 2027. China has set a target to achieve at least 15% Crude
Steel production via the EAF route by 2025. Electra, USA as
The OECD Steel Committee has voiced concerns over
well as Boston Metal, USA, have commissioned their pilot
growing global capacity which has risen to 2.5 Billion Tonne Plants to produce Low Carbon Steel using new innovative
(BT) in 2023, taking the gap between global capacity and technologies, using electricity to reduce iron ore. Naveen
steel production to 612 MT. As per OECD, global steel making Jindal group has also started constructing the world’s largest
capacity is projected at 2.63 BT by 2025. 5 MTPA Hydrogen based steel Plant in Oman.

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Indian Steel Outlook B. RISKS AND CONCERNS
As per World Steel Association’s (WSA) April, 2024 Short Range Impact of MMDR Amendment Act, 2021 on Non-
Outlook, after growth of 14.8% in 2023, India’s Finished Steel operational Mining Leases
demand is expected to show healthy growth of 8.2% each in The Minerals (Development and Regulation) Amendment Act
2024 and 2025. Further, India has emerged as the strongest (The Act) which came into force on 28th March, 2021, inter-
driver of steel demand growth since 2021 and it projects that alia, provides that in case the holder of a mining lease fails to
the Indian steel demand will continue to charge ahead with commence production and dispatch within a period of two
8% growth in 2024 and 2025, driven by continued growth years after the execution of mining lease or discontinues the
in all steel using sectors and especially by continued strong production and dispatch for a period of two years, the lease
growth in infrastructure investments. In 2025, steel demand shall lapse on the expiry of the period of two years from the
in India is projected to be almost 70 MT higher than in 2020. date of execution of mining lease or discontinuance of the
The FY 2023-24 was marked by high domestic Finished production and dispatch, as the case may be. On account of
Steel consumption at 135.95 MT, up by 13.4% as compared likely impact of the Act on non-operational mining leases of
to previous year. The high steel demand was partially SAIL and its subsidiary company, the matter was taken up
supported by huge investment in infrastructure by the with the Ministry of Steel for expediting early executions of
Government of India. However, as per ICRA, while the the mining leases of the Company on or before March, 2022.
Government capex spending was healthy until February’24, On intervention of the Ministry of Steel, required applications
other steel consuming sectors like housing/real estate were submitted for each non-operational mining lease with
contributed to the resilient demand thereafter. Given these the respective State Governments in March/April, 2022.
leading trends, the rating agency has revised its FY 2024-25 Consequently, out of the eleven non-operational mining
full-year steel demand growth target to 9-10% as compared leases of SAIL, three previously non–operational mining
to the earlier estimate of 7-8%. According to ICRA, for the last leases, namely, Bolani 6.9 Sq. Mile, Kuteshwar Left Bank and
three years, the steel industry has been going through the Kalwar have been made operational with the initiation of
mineral dispatches from these leases. Continuous efforts are
fastest period of growth witnessed since the global financial
being made to operationalize additional mining leases also.
crisis of 2008. During FY 2023-24, the industry registered a
consumption growth of 13.4%, which is marginally lower
than the peak of 13.9% registered in the golden period of Zone
FY 2005-06. Strong domestic demand remains a bright spot Chiria Mine Leases (except already broken up area in Dhobil
for Indian steel producers. During Q1’24-25 India’s Finished Lease) have been designated as a “No Mining Zone” in
Steel consumption was 35.42 MT, up by 14.2% as compared Management Plan for Sustainable Mining (MPSM) in Saranda
to corresponding period of previous year. forest, approved by MoEFCC. This impacts SAIL, as it is holding
A sub-par economic growth outlook in China is leading to an about 42% (out of available 3.7 Billion Tonnes (BT)) i.e. 1.6 BT
outflow of cheap steel exports from China. India’s Finished of iron ore resource at a single location viz. the Chiria Mine
Steel imports increased during FY 2023-24 to 8.31 MT, up in Saranda forest in Jharkhand, which is not only critical for
by 38.1% w.r.t. previous FY 2022-23. India turned into a net securing input raw material for future expansion but will
steel importer in FY 2023-24 after a gap of five years. In Q1 also take care of ongoing expansion in view of depleting
of FY 2024-25, India’s Finished Steel imports were 1.85 MT, resources at SAIL’s other Operating Mines. On intervention of
up by 29.50% as compared to corresponding period of last the Ministry of Steel in July, 2022 to allow mining in already
broken up area of the Chiria Leases which have been with
year. It is expected that due to strong demand in India and
SAIL for a long time, along with resumption of Reassessment
subdued domestic Chinese demand, India’s steel imports will
Study on MPSM to be carried out concurrently, MoEFCC
continue to rise.
intimated that there is no need for any Reassessment Study.
During FY 2023-24, Domestic steel prices came down amid Consequently, SAIL’s Chiria Leases, except for Dhobil, remain
sufficient domestic supplies, weak global steel prices, non-operational. In this regard, during a review meeting
sluggish exports and high imports. chaired by the Secretary (Mines) on 6th February, 2024, it was
Green Steel is manufacturing of steel without the use of fossil noted that despite ongoing efforts by the Ministry of Steel
fuels. In this regard, for promotion of Green Steel, Ministry to resolve the issue with MoEFCC, progress has been limited,
of Steel has set up 13 Task Forces to identify action points and accordingly, Secretary (Mines) directed to convene a
for each aspect of green steel production and sustainable meeting at the Secretary/Minister level with MoEFCC to
development of manufacturing processes. ` 455 crore has address the matter concerning the Saranda Forest Area.
been allocated for the steel sector under the National Green
Hydrogen Mission. The first commercial-scale green Hydrogen Order for Iron Ore by the Government of Odisha
Plant in India’s stainless steel sector was inaugurated at Government of Odisha vide Order dated 19th September,
manufacturing unit of Jindal Stainless Ltd. in Hisar (Haryana). 2022 while invoking the MMDR Amendment Act, 2021,
JSW Energy Ltd. is also setting up India’s largest 25 MW Green declared the Gazette Notification dated 4th February, 2004 as
Hydrogen project in Vijayanagar, Karnataka for its group lapsed and revoked the Prospecting License (PL) Grant Order
company JSW Steel Ltd. to manufacture green steel. Tata dated 24th February, 2021 for iron ore in favour of SAIL. The
Steel started the construction of its 0.75 MTPA scrap-based matter was taken up in November, 2022 with the Government
EAF Plant in Ludhiana. SAIL signed an MoU with Chennai- of Odisha for grant of a Composite License including the
based Ram Charan Company for managing greenhouse mining lease. However, there was inordinate delay in getting
gas emissions at its various Plants, including converting the response. Accordingly, a writ petition was filed before the
emissions to value-added products and fuel. Hon’ble High Court of Orissa for directing the Government

58
of Odisha to consider the application. Subsequently, the SAIL through allotment route in 2015 and 2016 respectively.
Hon’ble High Court of Orissa vide Order dated 17th March, However, due to decrease in the Coal Mining Lease areas
2023 directed the Government of Odisha to consider SAIL’s for both the coal blocks, SAIL Board approved the return
application and pass appropriate order within a period of the Parbatpur and Sitanala Coal Blocks to Ministry of
of three months from the date of production of a certified Coal (MoC). Accordingly, Nominated Authority, MoC, was
copy of this order. Consequently, in March, 2023, enclosing intimated about returning of Parbatpur and Sitanala Coal
the certified copy of the Hon’ble Court Order, Government Blocks, with a request to refund the amount paid including
of Odisha was requested to consider the SAIL’s application Bank Guarantee submitted by SAIL at the time of allocation
as per the direction of Hon’ble High Court of Orissa order. of blocks. SAIL had also requested MoC for allotment of
Thereafter, in November, 2023, on Government of Odisha potential coking Coal Blocks in lieu of Parbatpur and Sitanala
informing that the Thakurani lease could not be granted, Coal Blocks in line with NITI Aayog’s recommendation.
following a meeting between the Secretary (Steel) and the Meanwhile, Ministry of Coal terminated the allocations of
Chief Secretary of Odisha on 22nd November, 2023, the matter both the Coal Blocks i.e. Sitanala and Parbatpur and advised
of Thakurani Block A was forwarded by the Government of concerned banks to invoke the Bank Guarantees (BGs). In
Odisha to the Ministry of Mines on 27th December, 2023, both the matters, SAIL has preferred Writ Petitions before
seeking clarification on extending the time for granting and the Hon’ble High Court of Delhi to challenge the respective
executing mining leases for areas reserved under Section Orders.
17A of the MMDR Act. Subsequently, Chairman, SAIL, took
In the matter of Sitanala Coal Block, Hon’ble Delhi High Court
up the matter with the Secretary (Mines) on 22nd February,
declined to pass any interim order. However, Hon’ble Court
2024, urging for swift action and requested Ministry of Steel
clarified that if the petitioner prevails in this petition, the
for its intervention. Thereafter, on 11th March, 2024, Secretary
consequential direction for refund of the amount collected
(Steel) took up the issue with Secretary (Mines) for a favorable
by invoking the BG will be passed. However, in the matter
resolution in the Thakurani lease. In the meeting chaired by
of Parbatpur Coal Block, Hon’ble Delhi High Court directed
Secretary (Mines) on 13th August, 2024 with representatives
for maintaining status quo in respect of the BG till the next
from Government of Odisha and Ministry of Steel, SAIL
date of hearing. In both the cases, the matter is sub-judice.
presented its efforts regarding Thakurani PL and requested
Delay in allocating alternative, appropriate coal blocks as
an extension for the grant and execution of the Mining
recommended by Niti Aayog in April, 2017 is a matter of
Lease deed. It was concluded that, as a matter of policy, the
concern.
Ministry does not support reserving areas for bulk minerals.
Consequently, the proposal from the Government of Odisha
to extend the timeline by three years for the Thakurani Central Block of Kiriburu-Meghahatuburu Mines by
Block Lease may not be considered. SAIL is in the process of the MoEFCC
seeking further intervention of the Ministry of Steel. The Stage-I Forest Clearance (FC) for establishing new
mining pits at Kiriburu and Meghahatuburu Mines was
Jharkhand Mines granted in October, 2010, but faced delays due to various
issues, including concerns with the Management Plan for
On account of the likely shortage of iron ore in the Country,
Sustainable Mining (MPSM) and Compensatory Afforestation
Ministry of Mines, Government of India, vide Order
Land. In the FY 2022-23, the FC proposal after two reviews by
dated 16th September, 2019 has entrusted SAIL with the
the Forest Advisory Committee (FAC) was found inadequate.
responsibility to make available in the open market, 25
Thereafter, SAIL provided necessary information to MoEFCC
percent of its total mineral production of the previous year.
and fulfilled requirements for the Integrated Wildlife
Further, in another separate Order dated 16th September,
Management Plan (IWMP). Subsequently, after addressing
2019, Ministry of Mines, has allowed SAIL to dispose of the
the queries raised by MoEFCC in June, 2023, the Jharkhand
old stock of 70 MT of low grade iron fines and ores (including
State Government recommended the FC proposal in March,
slime) lying dumped across different captive mines of the
2024, followed by MoEFCC, Ranchi in April, 2024. The proposal
Company. In this regard, approximately 33 MT of iron ore
was examined by the FC division of MoEFCC. However, on
dump fines is concentrated at a single location at Gua Ore
April 24th & 26th, 2024, MoEFCC sought further clarifications
Mine. Efforts were being made in obtaining approval of
from Jharkhand State and MoEFCC, Ranchi. SAIL officials
respective State Governments and other concerned statutory
met with MoEFCC officials to address these queries and
authorities. Accordingly, Jharkhand State Government
submitted a representation on 3rd May, 2024. In the meetings
granted approval for utilizing iron ore dump fines at Gua for
with MoEFCC and State officials held in May, 2024 and June,
captive use in October, 2023. As a result, regular supplies of
2024 queries were addressed and request was made to
iron ore dump fines from Gua mines are being directed to
expedite the proposal for the diversion of 247.50 hectares of
SAIL Steel Plants for captive purposes. However, efforts are
forest land. However, in-spite of these efforts, the proposal
underway to secure clearances from the Jharkhand State
remained pending, and on 11th July, 2024, Director (Technical,
Government to initiate the sale of iron ore from SAIL Mines
Projects & Raw Materials) requested the intervention of IG
in Jharkhand.
(FC), MoEFCC. Consequently, MoEFCC asked the Principal
Secretary (Forests), Jharkhand, to provide comments on SAIL’s
lieu of Surrendered Sitanala and Parbatpur Coking representation and respond to a previous letter. The meeting
Coal Blocks held on 24th July, 2024, with the PCCF (Nodal), Jharkhand, led
In order to reduce its dependability on imported coking to revisions of the Site-Specific Conservation Plan, which was
coal, with the intervention of Ministry of Steel, two Coking resubmitted and approved on 31st July, 2024. Subsequently,
Coal blocks namely Sitanala and Parbatpur were allotted to as required for the revised plan, SAIL deposited ` 31.77 crore

59
on 8th August, 2024. In this regard, Final Compliance Report is being taken up with Indian Railways for expansion of
from Jharkhand Government is awaited. railway sidings, wherever required.

Ministry of Mines vide Gazette Notification dated 20th Restriction on Import

February, 2019 reserved 150-acre area in Block No.13/1, The matter is being pursued with the Government of India
Ramanadurga Forest Range, for iron ore mining purposes by for procurement through Global Tender Enquiry (GTE) for
SAIL/VISL for a 10 year period. In the process of execution of items having no indigenous availability and are valued up
mining leases deed for 150 acre area in Ramanadurga Forest to ` 200 crore. Further, in order to encourage indigenization,
Range for iron ore, the Government of Karnataka vide Order a list of items for which GTEs were issued has been put up
dated 29th February, 2024 accorded approval for relaxation on the SAIL Tender website to enable interested indigenous
for a further period of one year up to 19th February, 2025 to vendors to express their interest in supplying these items.
obtain statutory clearance and execute the mining lease.
SAIL/VISL is in the process of obtaining necessary approvals Achieving Target Revenue
viz. Forest and Environment Clearances. Any delay in
As there is lower than expected demand for steel during part
granting these clearances by 19th February, 2025 may impact
of the year, continuous efforts are made to improve upon
the execution of the Ramanadurga Lease.
sales in freight advantageous zones. Further, committed
sales under MoU and other order booking schemes through
Mine at Rowghat Tier-1 and Tier-2 distributorships mitigate the risk of volatility
In view of the depleting reserves and serious quality concerns in price and low demand. To reduce the dependence of
associated with existing iron ore mines of Bhilai Steel Plant, sales on lower end of the product value chain, focus is on
early development of large mechanised mines at Rowghat increasing targeted sales of downstream and ready to
is imperative. The Rowghat Lease is situated across two use products to diversify the segment basket under Tier-1
Forest Divisions viz. Bhanupratappur (East) (MDO Area) and distribution channel. Segment specific approach is being
Narayanpur (Interim Mining Area). On obtaining clarification adopted for products being difficult to market and seminars
from MoEFCC and after addressing security concerns, tree and workshops are being conducted to bring awareness
cutting began on 17th June, 2020. In the Narayanpur Division, about the products. Government intervention is also being
where interim mining @ 1.5 MTPA is underway, tree cutting sought through industry associations for continuing tariff
and land handover progress are satisfactory. However, in the based redressal for discouraging low value imports. Focused
Bhanupratappur Division, tree cutting operations have been approach is being adopted to explore more avenues for
halted since March, 2021 due to protests from local residents. exports in countries like Nepal for semis, WR Coils, HR Coils
In this regard, approximately 280 hectares of land, with only and Europe for PM Plates and HR Coils.
36% of the required area handed over so far. The delays in land
handover, has hindered the establishment of infrastructure of specific Product Mix may impact plans for Revenue
needed for the development of a large mechanized mine generation and Growth from Exports.
at Rowghat. Till the time, the large mechanized mine at
As the prices in international market are subject to wide
Rowghat is developed, SAIL is the process of increasing the
fluctuations, focus is on neighbouring markets in SAARC
interim mining production to a level of 2 MTPA by October,
and Middle East viz. Nepal, Bangladesh and Sri Lanka. Efforts
2024.
are being made for diversification of export product basket
with inclusion of more value added products and products
of Production manufactured from new mills at ISP, RSP and DSP.
At Bhilai Steel Plant, the iron ore production is being met
from the Rajhara Group of Iron Ore Mines. Due to exhaustion There is a risk of interruption in supply of imported coking
of iron ore from top benches, mining operations are being coal as there are limited number of vendors and bulk supply
done in lower benches. As an alternative, mining of iron ore from one geographical area. Action is being taken to increase
is to be started from the Rowghat Mines. However, there is vendor base through EOI route and increase coal basket
delay in the Rowghat project mainly due to LWE activities. by exploring new coal producing countries from different
In the meantime, contract has been awarded for interim geographies like Russia, Kazakhstan, etc.
mining in Anjrel Block. In this regard, preliminary work like
construction of approach road, installation of screening unit,
Reputation, Customers’ Confidence and Erosion of
supply of power and construction of water pipeline has been
Brand Image/Equity.
completed. Tree enumeration process has been completed.
Security camp has been established at hilltop, exploratory To mitigate the misuse of our brands, existing brand names
drilling activity has been completed. Rail Line commissioned and their registry status is reviewed. Action is being taken for
up to Taraoki siding (77kms) and complete Rail Line is extension of registration of all brands except SAIL TIN, which
expected by June, 2025. Production from Block-A through is not for production. Last registered brand was SAIL SeQR.
MDO @ 14 MTPA is in progress. Updated list of conversion agents, wet leasing agents and
SPUs is available on the website of the Company. Further,
major brands are properly displayed at SAIL’s website and
The matter is being taken up with the concerned authorities other media avenues. In addition to this, product brochures
for obtaining forest clearances for starting mining activities for major products have been developed and are displayed
at some of the mines. In addition to this, actions are being at appropriate places and Brand Manual for Tier-1 & Tier-2
taken to expedite the mining process at Rowghat and matter retail models is also in use.

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C. SWOT ANALYSIS
Strengths Weakness Opportunities Threats
Multi located production units provide an edge over other Dependence on external With an accelerated push to Increased competition
domestic steel players. sources for key input step up capital expenditure, the from domestic,
Well established nationwide marketing and distribution i.e. coking coal leads Government of India proposed international steel
network. to exposure of the new policies regarding steel companies located in
Most diversified product range. Company to the market intensive segments such as India and imports.
risk. infrastructure, capital goods Increased focus
Availability of land bank at existing Plant/Unit locations
Ageing employee and construction, thus giving worldwide on Green
for future brown-field expansion.
mix along with a high a bright outlook for the steel Steel.
Input security - 100 per cent integration in iron-ore. industry.
manpower cost and Increasing domestic
Newly commissioned Mills oriented towards products, for relatively low manpower Low per capita steel Steel production
infrastructure development. productivity. consumption as compared to capacity.
Potential for improving product-mix and reducing cost world standards. Inflationary pressures.
through operational efficiency and utilization of new & Rising Steel demand in the
modernized units. Country.
Qualified and experienced professionals in steel making.

D. OUTLOOK E. REVIEW OF FINANCIAL PERFORMANCE

International Monetary Fund (IMF) in its July’ 24 World 1. FINANCIAL OVERVIEW OF SAIL
Economic Outlook has held global growth expectations
SAIL achieved its best ever sales turnover of ` 1,04,545.09
for 2024 to be steady, while warning of inflation risks and
crore during the Financial Year (FY) 2023-24, which was
trade tensions ahead. The IMF expects the world economy
higher by 1% as compared to corresponding period of last
to grow 3.2% in 2024, unchanged from its April forecast.
year (CPLY) turnover of ` 1,03,728.63 crore. During the FY
IMF has increased India’s growth projection for 2024 to 7%,
2023-24, the Profit before Tax and after Tax was ` 3,687.67
which is 20 basis points higher than its April estimate, due
crore and ` 2,733.11 crore respectively as compared to
to improved prospects for private consumption, especially in
CPLY Profit before Tax and after Tax of ` 2,636.91 crore and
rural areas. Most other agencies have revised upwards their
` 1,903.07 crore respectively. The comparative performance
growth projections for India for FY 2024-25 in the range of
of major financial parameters during the FYs 2023-24 and
6.6% to 7.0%.
2022-23 is given below:
World Steel Association (WSA) in its Short Range Outlook,
(` crore)
April’2024, has observed that after two years of negative
growth and severe market volatility since the Covid-19 crisis Particulars 2023-24 2022-23
in 2020, it sees early signs of global steel demand settling in Sales Turnover 104545.09 103767.54
a growth trajectory in 2024 and 2025. The global economy Profit Before Interest, Taxes, Depreciation and 12279.77 9378.91
continues to show resilience despite facing several strong Amortisation (EBITDA)
headwinds, the lingering impact from the pandemic and Less: Interest and Finance Charges 2473.81 2037.47
Russia’s invasion of Ukraine, high inflation, high costs and Less: Depreciation 5277.45 4962.52
falling household purchasing power, rising geopolitical Profit Before Exceptional/Abnormal Items and 4528.51 2378.92
uncertainties and forceful monetary tightening. On the Tax
upside, WSA believes that a faster than expected disinflation Less: Exceptional items Gain(-)/Loss (+) 840.84 -257.99
accompanied by further monetary policy easing could Profit(+)/ Loss(-) before tax 3687.67 2636.91
provide a significant boost to steel using sectors, particularly Less: Provision for taxation 954.56 733.84
housing construction. On the downside, it observes that Profit(+)/Loss(-) after Tax 2733.11 1903.07
further escalation in geopolitical tensions, inflationary Other Comprehensive Income -122.17 -438.61
pressures proving more persistent than expected, and high Total Comprehensive Income (+)/Loss(-) 2610.94 1464.46
and rising public debt levels triggering fiscal consolidation Net Worth 54131 52139
in major economies, have the potential to slowdown the EBITDA to Net sales (%) 11.75 9.04
ongoing economic recovery or even derail it. Return (PAT) on Net worth (%) 5.05 3.65

With regard to Indian economy, WSA in its April’24 Short EBITDA to average capital employed (%) 19.06 15.01

Range Outlook has stated that India’s Finished Steel demand Earnings per share of Rupee 10/- each 6.62 4.61
is expected to show healthy growth of 8.2% each in 2024 Debt Equity Ratio 0.67:1 0.59:1
as well as 2025. Government of India’s strong emphasis on Current Ratio 0.90:1 0.77:1
infrastructure development in FY 2024-25 budget is likely to Debtors’ Turnover Ratio (Days) 29 19
boost domestic steel consumption. However, inflated coking Inventory Turnover Ratio (Days) 6.65 8.41
coal prices, rising steel imports from China, weak international Interest Coverage Ratio(No. of times) 2.64 2.05
steel prices, rising domestic steel making capacities, rising Operating Profit Margin (%) 6.69 4.26
geo-political uncertainties, remain a challenge. Net Profit Margin (%) 2.61 1.83

61
During the FY 2023-24, the increase in the profitability over Further, with consistent focused approach in areas of
CPLY is mainly on account of higher sales volume; finalization product development, branding, niche marketing, customer
of Rail price for FY 2021-22 as well as revision of provisional servicing, market penetration & diversification, digitalization,
Rail price for FY 2022-23 & 2023-24; lower imported coal etc., SAIL is committed to aim for continual improvement for
prices and ferro alloys prices; lower usage of other raw prosperity in business. In this regard, to tap new markets,
materials like Iron ore, zinc, copper, other ferro-alloys, power; new products are being developed and commercialized in a
etc., better techno-economic parameters like improvement planned manner. Marketing of new products in FY 2023-24,
in BF productivity, lower usage of coal, Specific Energy include the following:
consumption, etc.; lower salary & wages; reduction in loss on
foreign exchange fluctuation; etc. Wire Rod Mill at IISCO Steel Plant for the Auto Industry.
However, the increase in the profit has been partially offset
by lower Net Sales Realisation of Saleable Steel and lower like 19MnB4, SUP11A, IS 11169 26C10BT/SAE 15B/25, etc.
sale of coal chemical & by-products; higher usage of external at IISCO Steel Plant for applications in Forging, Spring
BF Coke, limestone, scrap etc.; lower stock valuation rate; steel, Auto industry, Hi-Tensile TLT segment/General
higher expenditure on stores & spares, Repair & Maintenance, engineering, etc.
Raw Material handling charges, freight outward, etc.; higher
royalty rates; lower dividend income; impact of exceptional
items (Settlement under Vivad se Vishwas Scheme-II and and HSFQ 550 grade have been developed at Hot Strip
Entry Tax); higher interest charges and depreciation; etc. Mill-2 for Automotive component.

As compared to CPLY, while there has been increase in

IS 5914 HS345 2.2/2.5mm HR Coil for LPG cylinder have
turnover, there has been an increase in dues also, leading
been developed at Hot Strip Mill-2 at Rourkela Steel
to an increase in Debtors’ Turnover Ratio. There has been an
Plant and Certification has been obtained for the same.
increase in the inventory levels during the year. The increased
Current Ratio is mainly on account of increase in inventory
levels and debtors. Increase in borrowings has led to higher 4905 (11.8mm) for Railway Wagon Spring Box.
debt equity ratio in FY 2023-24. Increase in Interest Coverage
Ratio is mainly due to higher increase in EBIT w.r.t. interest Sulphur for usage in oil pipelines and grade CF-53 for
and finance charges. nuclear applications have been developed at the Special
1.1 Cost Control Measures Steel Plants of the Company.
Besides the usual efforts to enhance sales, your Company
has taken a number of initiatives to improve sales and
through continuous process improvement and R&D
market presence which, inter-alia, include the following:
efforts, resulted in cost reduction, improvement in
productivity & quality and value addition.
of more than 5100 dealers spread across the Country.
With 50 Distributors already in place in the 2-tier
items, maximizing usage of available indigenous coal, distribution network as on 31st March, 2024, this channel
maximising use of in-house engineering shops, sale of of retail sales is being further strengthened. Around
idle assets, optimising procurement through centrally 9.47 lakh tonnes of TMT were supplied through the
purchased items, including negotiations with suppliers 2 Tier Distributor network during FY 2023-24. SAIL also
for price reduction, were pursued throughout the has Tier-I distributor system to improve the system of
financial year 2023-24. servicing demand of small consumers, B2B industrial
segments and to provide single window servicing of
base of purchased PCI coal by adding low cost coals small customers including value added services and
from Russia, enhanced usage of indigenous coals and has 58 distributors as on 31st March, 2024. This huge
improvement in operational parameters such as Coke network spread across the Country helps in meeting
the requirements of a wide range of customers spread
Rate, Coal Dust Injection, Concast Production and
through length and breadth of the Country. Out of
Usage of Pellets in prepared burden at Blast Furnaces
total sales of 22.86 lakh tonnes to retail segment during
have contributed to cost savings during the year.
April to March, 2024, sales through Tier-2 Distributors
1.2 Marketing and Dealers was 10.27 lakh tonne consisting of TMT &
GC, against 8.26 lakh tonne in the previous year. Sales
Your Company has taken a number of business and through Tier-1 distributors during the Financial Year
strategic initiatives during the Financial Year 2023-24 aimed 2023-24 was 12.59 lakh tonne.
at sustaining and consolidating its position, in a highly
competitive market, as the leading steel producer of the
Country. usage in rural areas, SAIL has an ongoing rural outreach

62
programme “Gaon Ki Ore”. Under the campaign, 400 to Prayagraj), Delhi Amritsar Katra Highway in Northern
workshops have been conducted during the financial Region; AIIMS at Deoghar, 111 Km long Broad Gauge
year 2023-24 across the Country with focus on small Extension project connecting Jiribam-Tupul-Imphal
consumers, etc. through 52 tunnels & 149 bridges, Mokama Railway
Bridge in Patna, Jagannath Pilgrimage Centre at Puri, in
Eastern Region. SAIL was also one of the major suppliers
“SAIL-SeQR” in 2019-20. This brand is being promoted as
of steel to Metro Rail Projects across the Country.
better quality steel for safer homes. This brand is focused
to enhance retail presence of SAIL with special emphasis
on rural penetration. During the FY 2023-24, the among all steel producers in the Country. As on 31st
Company has sold about 8.44 lakh tonnes of “SAIL SeQR” March, 2024, SAIL’s functional network of marketing
reinforcement bars. During the coming years, in addition offices consists of 37 Branch Sales Offices, 5 Customer
to contribution to top line value, the brand “SAIL SeQR” Contact Offices and 37 Stockyards (18 Departmental
is expected to not only meet the quality expectation of Warehouses, 17 Functional Consignment Agency yards
the Retail Sector but also to drive brand presence of the and 2 Consignment Handling Agency yards). Marketing
Company. efforts are further supplemented through SAIL’s Retail
Channel that reaches the products of mass consumption
In the domain of Digitization, SAIL has been pursuing a
to remote corners of India.
number of projects. Within this, the dynamic QR project
is established at Dankuni and Bengaluru Warehouses.
Integrated Vehicle Tracking system (IVTS) has been include launching of Incentivisation Scheme for MSMEs
implemented throughout the Country. SAIL Grahak to promote Local Industries based in and around our
Sampark app has been launched for customer contact. Integrated Steel Plants, wherein 147 MSMEs have joined
After being introduced in the previous financial year for the SAIL scheme. Supplies to these MSMEs have been
facilitating easier navigation & information accessibility more than 1,22,000 tonnes in Financial Year 2023-24, a
for customers and visitors, AI based Chatbot ‘SAIL growth of about 35% over the previous year.
SARATHI’ is being monitored for further improvements.
In your Company’s pursuit for continual improvement,
In addition to this, WhatsApp business channel has been
particularly in the area of increasing customer reach and
established for SAIL SARATHI and to send promotional
customer satisfaction, several activities and initiatives are
activities to customers and distributors. Make in India
being taken and planned for future, including the following:
Branding, using Dynamic QR Code has started in Steel
Plants. Software defined wide area network (SDWAN)
implemented on the New BSNL network, will optimize Annual/Quarterly Commitments with customers.
data movement across the network. Face based
Biometric attendance has been implemented for all Accounts.
the Marketing executives. Safe Cyber security measures
have been taken like VAPT: Vulnerability & Penetration
Test Done for Data Centre Servers and Safe to Host (MSAs) through Sales Force Effectiveness.
certificates obtained from the Auditors.
better stock management at warehouses and Tier-1
brand of structurals, assuring improved performance. distributor network. Efforts will be made to augment
Efforts have been made to popularise usage of steel in sales through Tier-1 Distributor Network with value
designing in general and increase usage of “NEX” brand added services.
of structural through virtual meetings with customers,
webinars and participated in virtual workshop sessions
in-house and also by Structural Designers, Architects,
etc. In addition to this, Tier I Distributors of Structurals Management.
are promoting NEX brand through advertisements/
hoardings, etc.
Besides above, future plans include development of
medium & long term strategies with focus on realignment
to number of Iconic Structures and Projects of National of segments for improving realization & increasing market
Importance. The major projects include- Kalapakkam share in value added segments. In addition to this, efforts will
Nuclear Project in Southern Region; Mumbai Trans be made to consolidate sales in new segments like Precision
Harbour Link Project, Versova Baroda Sea Link Project, Tube, General Engineering & Fabrication, Cold Forming, Auto
Mumbai Delhi expressway (Surat-Dahod Package), Component & Electrical Equipment, Solar, Pre Engineered
Rawbatta Nuclear Plant, Rajasthan in Western Region; Building (PEB), Earth Moving Equipment (EME), Oil & Gas and
Zozilla Tunnel in Sonmarg, Ganga Expressway (Meerut Windmill.

63
1.3 Funds Management
There is increase in the borrowings of the Company from
` 30,773 crore as on 31st March, 2023 to ` 36,315 crore as
on 31st March, 2024 in line with INDAS. Consequently, the
debt equity ratio of the Company as on 31st March, 2024
is 0.67:1 as compared to 0.59:1 in the previous year. The
interest and finance charges on operation account during
the current year at ` 2,474 crore are higher as compared to
` 2,037 crore in CPLY due to increase in borrowings as well as
interest rates. The Net-worth of the Company has increased
from ` 52,139 crore as on 31st March, 2023 to ` 54,131 crore
as on 31st March, 2024. M/s. CARE Ratings and M/s. India
Ratings, RBI approved credit rating agencies, assigned
‘CARE AA- Outlook: Stable’, ‘India Ratings IND AA-Outlook:
Stable’ ratings respectively for SAIL’s long- term borrowing The Company catered to almost the entire gamut of the mild
programme. The trend of borrowings and Net-worth is given steel business namely, Flat Products in the form of Plates, HR
as under: Coils/Sheets, CR Coils/Sheets, Galvanised Plain/Corrugated
Sheets and Long Products comprising Rails, Structurals, Wire-
Rods and Merchant Products. In addition, Electric Resistance
Welded Pipes, Spiral Welded Pipes and Silicon Steel Sheets
formed part of the Company’s rich product-mix. The product
category-wise % sales turnover during the FY 2023-24 is
given as under:

Products Category % of Sales value

Saleable Steel
Flat Products (including Pipes & Electrical Sheets) (a) 49
Long Products (b) 44
Integrated Steel Plants – Mild Steel (c = a + b) 93

1.4 Contribution to SAIL Gratuity Trust Alloy & Special Steel Plants - Alloy & Special Steel (d) 3

As per the settlement made towards payment of Gratuity Total Saleable Steel (e = c + d) 96
by the Company, an amount of ` 516 crore has been funded Secondary Products (Pig Iron, Scrap, Coal Chemicals,
4
etc.) (f )
by SAIL Gratuity Trust to the Company. The fund size has
Total (g = e + f) 100
been at ` 5,792.99 crore as on 31st March, 2024, as per the
contributions made by the Company to SAIL Gratuity Trust. c) Sale of Services - Service Charges
2. ANALYSIS OF THE FINANCIAL PERFORMANCE (` crore)
OF THE COMPANY
FY 2023-24 FY 2022-23 Change %
2.1 Revenue from Operations
19.93 20.22 -1.43
(a) Sale of Products
Revenue from sale of services decreased by about ` 0.29 crore
S.No. Particulars FY 2023-24 FY 2022-23 Change % over the previous year.
1 Sales of Saleable Steel
100984.80 98813.35 1.17 d) Other Operating Revenues
Products
2 Sales of Other Products 3560.29 3915.28 -9.07
(` crore)
3 Total Sales Turnover 104545.09 103728.63 0.79 FY 2023-24 FY 2022-23 Change %

(b) Trend of Domestic Sales and Exports 809.57 698.51 15.89

Other operating revenues increased by about ` 111.06 crore

over previous year mainly due to recoveries from social
amenities, sale of empties and better realization from sale of
sundries.
2.2 Other Income
(` crore)
FY 2023-24 FY 2022-23 Change %
1148.06 1354.84 -15.26

64
Other income decreased by about ` 206.78 crore over (` crore)
previous year primarily on account of lower interest income
Particulars FY 2023-24 FY 2022-23 Change %
from customers and dividend from investments.
CURRENT ASSETS
2.3 Expenditure
(a) Inventories 32646 27716 17.79
(` crore)
(b) Financial Assets
Particulars FY 2023-24 FY 2022-23 Change %
(i) Trade Receivables 8309 5362 54.96
Raw Materials Consumed 57619 62091 -7.20
(ii) Cash and cash equivalents 14 6 133.33
Employee Remuneration &
11748 12054 -2.54 (iii) Bank balances other than
Benefits 528 392 34.69
(ii) above
Finance Cost 2474 2037 21.45
(iv) Loans 28 35 -20.00
Depreciation 5277 4963 6.33
(v) Other Financial Assets 1369 1229 11.39
Other Expenses 28229 27439 2.88
(c) Income Tax Assets 433
During the FY 2023-24, there has been decrease in Raw (d) Other Current Assets 4541 2989 51.92
Materials cost on account of low imported coal prices and
(e) Assets classified as held
higher usage of raw materials like Iron Ore, Limestone 15 29 -48.28
for sale
and other ferro-alloys. During the year, the Employees’ TOTAL CURRENT ASSETS 47883 37758 26.81
Remuneration & Benefits have decreased mainly due to
TOTAL ASSETS 137534 127712 7.69
reduction in manpower on account of natural separation.
There has been increase in borrowings, which has led to The capital work-in-progress has increased by ` 1,250
higher finance cost and an increase in depreciation has been crore on account of expenditure incurred on various
mainly due to capitalization of new facilities. The increase in capital schemes in Steel Plants.
Other Expenses was on account of increase in royalty rates, Other Non-Current Assets decreased by ` 525 crore.
higher consumption of stores & spares, raw material handling The inventories increased by ` 4,930 crore mainly on
expenses, repairs & maintenance, freight outward, etc. due to account of increase in raw materials inventory by ` 974
crore, finished/semi-finished products inventory by
increase in production volume.
` 3,392 crore, and stores & spares inventory by `564 crore.
2.4 Contribution to Exchequer Increase in trade receivables was by ` 2,947 crore mainly
on account of dues from Indian Railways.
During the Financial Year 2023-24, SAIL contributed ` 22,015
crore to the exchequer by way of payment of taxes and Other Current Assets increased by ` 1,552 crore.
duties to various Government agencies. 2.6 Non-Current/Current Liabilities
(` crore)
2.5 Non-Current/Current Assets
(` crore) Particulars FY 2023-24 FY 2022-23 Change %
NON-CURRENT LIABILITIES
Particulars FY 2023-24 FY 2022-23 Change %
(a) Financial Liabilities
NON CURRENT ASSETS
(i) Borrowings 9568 6113 56.52
(a) Property, Plant and Equipment 65397 67091 -2.52
(ii) Lease Liabilities 5235 4737 10.51
(b) Capital Work-in-Progress 6141 4891 25.55
(iii) Trade Payables
(c) Right of use Asset 5521 4910 12.44
(iv) Other Financial Liabilities 1411 1390 1.51
(d) Investment Property 1 1 0
(b) Long Term Provisions 5724 5604 2.14
(e) Intangible assets 1489 1521 -2.10
(c) Deferred tax liabilities (net) 6178 5747 7.50
(f ) Inventories 4625 4635 -0.22
(d) Other non-current liabilities 1860 2680 -30.60
(g) Financial Assets
Total Non Current Liabilities 29976 26271 14.11
(i) Investments 1694 1673 1.26 Current Liabilities
(ii) Trade Receivables (i) Borrowings 21025 19549 7.55
(iii) Loans 877 655 33.89 (ii) Lease Liabilities 486 375 29.60
(iv) Other Financial Assets 444 370 20.00 (iii) Trade Payables 15332 14339 6.92
(h) Deferred Tax Assets (Net) 0 0 (iv) Other Financial Liabilities 10517 10131 3.81
(i) Current Tax Assets (Net) 375 595 -36.97 (b) Other current liabilities 4565 3533 29.21
(j) Other non-current assets 3087 3612 -14.53 (c) Provisions 1290 1379 -6.45
TOTAL NON CURRENT ASSETS 89651 89954 -0.34 (d) Current Tax liabilities (net) 209
TOTAL CURRENT LIABILITIES 53424 49306 8.35
TOTAL (CURRENT + NON
83400 75577 10.35
CURRENT LIABILITIES)

65
 Long term borrowings increased by 57% mainly due to Company in terms of the foreign exchange outgo, affecting
funds being blocked in inventory and realization from the Country’s foreign exchange reserves.
debtors and the short term borrowings have increased by
` 1,476 crore mostly on account of lower sales realisations. It has been our endeavour to minimize the imports through
Further, other current liabilities increased mainly due to domestic substitution wherever possible, and also emphasise
payables on account of GST and Entry Tax settlement. on exports. One of the major raw materials which SAIL has
been importing is Coking Coal. Efforts are being made to use
3. PLANT-WISE FINANCIAL PERFORMANCE (PROFIT
a blended coal mix with increased indigenous coal, which
BEFORE TAX)
(` crore) would lead to reducing the dependence on the Imported
Coking Coal in order to reduce the outflow of precious foreign
Plant/Unit FY 2023-24 FY 2022-23
currency. Further, measures are being taken to expand the
Bhilai Steel Plant (BSP) 2342.75 376.16
basket/pool of suppliers for imported inputs/raw materials.
Durgapur Steel Plant (DSP) 351.64 638.88
The Government of India policy initiative restraining Global
Rourkela Steel Plant (RSP) 652.91 521.07
tender for projects up to ` 200 crore, while is expected to
Bokaro Steel Plant (BSL) 822.83 840.84
provide the domestic participants an opportunity on the
IISCO Steel Plant (ISP) 109.42 339.77
one hand, on the other hand, it will result in conserving
Alloy Steels Plant (ASP) -102.65 -140.09
of Foreign Currency. In addition to this, the Company has
Salem Steel Plant (SSP) -286.19 -240.53 taken up various initiatives to indigenise the procurement of
Visvesvaraya Iron & Steel Plant (VISP) -48.93 -51.10 raw materials and other inputs to the extent they become
SAIL Refractory Unit (SRU) 11.17 25.72 available to the Company at the commercially acceptable
Chandrapur Ferro Alloys Plant (CFP) -136.71 -91.80 prices/costs and commensurate with the requirements of
Raw Materials Division/Central Units -28.57 417.99 the technologies adopted by the Company.
SAIL: Profit Before Tax (+)/Loss(-) 3687.67 2636.91
H. PROJECT MANAGEMENT
F. MATERIALS MANAGEMENT AMR SCHEMES
A number of initiatives were taken to reduce cost of inputs Besides Modernisation and Expansion Projects, the
and improve the performance of materials management, Addition, Modification & Replacement (AMR) Schemes
some of which are summarized as under: have also been taken up which are required for managing
Procurement on GeM Portal: In the Financial Year 2023- the existing operations and primarily focuses on improving
24, SAIL further scaled up its procurement of Goods and the current level of efficiency and output in incremental
Services through Government e-Marketplace (GeM), with measures. AMR Schemes are undertaken for improving or
a special focus on procurement of Services, by achieving revamping of existing facilities for sustaining the existing
a total procurement value of ` 10,421.65 crore, including operations, balancing/debottlenecking of production
` 1,031.08 crore of Services. For the last 3 years since FY processes, improve energy & other resource consumption/
2021-22, SAIL has successively maintained its position services/safety and environment. Replacement includes
amongst top three CPSE buyers on GeM. While the total mostly replacing the existing Plant & Equipment which have
Goods & Services registered a growth of about 13%, completed their useful life with better performing Plant &
Services were higher by about 568% over the previous Equipment. Accordingly, a number of AMR schemes costing
financial year. In the Buyer Seller Honour Ceremony 2023 around ` 8,200 crore were under implementation during
held on 26th June, 2023, SAIL was awarded the Gold Financial Year 2023-24 in different Plants of the Company, of
award in the category of Top Organisations with respect which major schemes are as under:
to Government e-Marketplace (GeM) Gross Merchandise
Value (GMV) in FY 2022-23.
of Converter Vessels, Trunnion Rings, Support System;
Installation of Secondary Emission Control System
29.28% against a target of 25%. SAIL is continuously for three Converters in SMS-II; and Installation of High
making endeavors to develop new MSE vendors and Pressure Primary Descaling Unit in Plate Mill at Bhilai
provide support to local MSEs by mentoring, training, Steel Plant; and Modification in Washing Circuit of CSW
handholding and providing technical support to Plant; Installation of 1.0 Mtpa Pellet Plant on Build-Own-
such MSEs in their chosen areas of functioning. In this Operate (BOO) basis at Dalli Mines.
regard, SAIL Plants and Units conducted 38 Vendor
Development Programs during FY 2023-24. Vendor
th
Stove in Blast Furnace No.4; Installation
Development Programs were also conducted especially of NDT Facilities at Wheel & Axle Plant; Power
for SC/ST and Women MSME vendors, to inform them Augmentation Scheme for new 1250 TPD BOO Oxygen
about the opportunities, item requirement and vendor Plant; Installation of New Gas Fired Boiler; Replacement
registration procedures in the organization. of existing 33KV MRS Indoor Switchboard by GIS;
Complete Waste Water Treatment for Outfall 1, 2 & 3;
G. FOREIGN EXCHANGE CONSERVATION Installation of New Coke Oven Gas Holder; Installation
SAIL’s imports are large as compared to the exports, and of 1250 TPD Oxygen Plant on BOO basis; Rebuilding of
therefore, the foreign exchange has a larger impact on the Coke Oven Battery-4; Extension of FG Bay and other

66
 Associated Facilities for enhancing storage of Billets and Engineering Consultancy for Sinter Plants, Pellet Plants, Blast
Blooms and dispatch facilities at CCP; and Installation of Furnaces with associated facilities like CDI injection, Stoves,
New Electric Driven Exhauster in 1.0 MT Coal Chemical Gas Cleaning Plant, Top Recovery Turbine, Slag Granulation
Plant at Durgapur Steel Plant. Plant, etc. Steel Melting Shops with associated facilities like
Ladle Furnaces, Casters and Thin Slab Casting and Direct
Rolling (TSCDR) in the area of Iron & Steel making, Rolling
of ZLD; Re-building of Coke Oven Battery No.2 along
Mills & Reheating Furnaces, Utilities projects like Zero Liquid
with augmentation of Coke Handling & Gas Handling
Discharge Projects, Oxygen Plant, Power Plant, Pollution
Facility; Installation of 4th Slab Caster along with Ladle
Control Projects, Refractory Plants, Automation Projects,
Furnace at SMS-II; Installation of Power supply Package
Electrical Power Supply & Distribution Projects, Infrastructure
for 1000 TPD Oxygen Plant on Construct, Operate and
Projects, and Balance of Plant & Equipment.
Maintain (COM) basis; Construction of 30 MLD Sewage
Treatment Plant at RSP Township; and Installation of CET has competitive edge of working in brown field projects
1000 TPD Oxygen Plant on COM Basis at Rourkela Steel in SAIL Plants and has also successfully carried out green
Plant. field projects. CET has prepared the (a) Composite Project
Feasibility Report for brownfield expansion of DSP from
2.2 Mtpa of Crude Steel to 3.09 Mtpa and (b) Pre-feasibility
Plant; Development of alternate system for drawal of
report for brownfield expansion of BSL from 4.66 Mtpa of
raw water from Damodar River from BSL & Township;
Crude Steel to 7.16 Mtpa. CET is also the owners’ consultant
Replacement of existing RRI (Route Relay Interlocking)
for expansion of ISP, BSL and DSP.
System by SSI (Solid State Interlocking) System at SWS
(Steel Works Station); Power supply arrangement for The current major projects being handled by CET covers
proposed 2000 TPD Oxygen; Installation of 2000 TPD many brownfield as well as greenfield projects and include
Oxygen Plant on BOO Basis; Up-gradation of Automation Brown Field Expansion of DSP and RSP; Engagement of MDO
System of Hot Strip Mill; Installation of 220 kV, 3rd line at Tasra for Open Cast Coal Mines, and at Taldih for Iron Ore
between CTPS of DVC to MRS; Replacement of Turbine Mines; Mining Plans for development of various mining
& Auxiliaries for Turbo Blower No.5; Reconstruction of leases in SAIL Iron ore mines; Up-gradation of OHP-A, BSP;
unused Stove No. 4 in Blast Furnace No.2; Revamping of Installation of New Stamp Charged Coke Oven Battery (first
Blast Furnace No. 3; Rebuilding of Coke Oven Battery No. such Coke Oven Battery in SAIL) at RSP and ISP along with
6; and Replacement of Central Compressor Plants (CCP-I CDCP units; Rebuilding of Coke Oven Battery at BSL and
& CCP-II) by installation of Compressed Air Station at DSP; Upgradation of Blast Furnace#3 at DSP; Revamping
Bokaro Steel Plant. of subsystems of BF-3 at BSL; New Hot Blast Stoves for
Blast Furnaces in DSP, BSL, RSP & ISP; New CDI complex
with grinding, drying and injection facility for BF–3 & 4
Station No. 2 to Coke Oven Battery No.10; and Installation
of BSL; Augmentation of CDI in BF-7 at BSP; Installation of
of 4th Stove in Blast Furnace No.5 at IISCO Steel Plant.
TRTs on BFs of RSP and BSP; Installation of 4th caster in RSP;
Further, out of the above, following projects worth Converter shell changing in BSP; Ladle Furnace in BSP &
about ` 350 crore have been completed during the year ISP; Installation of New Universal Rail & Structural Mill, BSP;
2023-24: New Bar Mill in DSP; Refurnishing Mill Complex for Rails in
Universal Rail Mill of BSP and Head Hardening facility for
Mines. Rails in BSP; Upgradation of Automation of Finishing Mills
and Reheating Furnaces of Hot Strip Mill at BSL; New Product
Testing Laboratory for NPM & HSM in RSP; Non-Destructive
Testing facilities for wheels in DSP and Long Rails in BSP;
‘Implementation of ZLD’ at RSP. Oxygen Plant at DSP, RSP and BSL; Zero Liquid Discharge
I. IN-HOUSE DESIGN & ENGINEERING (ZLD) projects of ISP, DSP and RSP; Power Evacuation Projects
at DSP, RSP; Installation of ESP based Area De-dusting of
Centre for Engineering & Technology (CET), the ISO 9001:2015 Machine Building (Sinter Band–1, 2 & 3) alongwith Material
certified in-house design, engineering and consultancy unit Distribution Plant (MDP) of Sinter Plant, BSL.
of SAIL caters to prepare investment proposal for the projects
required for sustenance, up gradation, modernization of J. RESEARCH & DEVELOPMENT
Plants & Units of the Company with measures to reduce Research and Development Centre for Iron & Steel (RDCIS) of
carbon footprint and compliance to environmental norms. the Company is India’s premier research organization in the
CET provides consultancy for CAPEX projects across the field of ferrous metallurgy. Recognizing that development
complete value chain of steel business processes from and assimilation of new technologies & process innovations
Mines to Finishing. The major area of competency is in are basic tenets for sustainable growth, SAIL has given thrust
Mine Planning, Development and Capacity Expansion of for its R&D efforts through its well equipped R&D Centre
Mines, Mineral Beneficiation, Loading and Transportation, located at Ranchi. It has more than three hundred diagnostic
Iron Ore Pelletisation, Material Handling in the area of equipment and adequate pilot facilities under fifteen major
Mining; Preparation of Investment Proposals and Design & laboratories. The Centre undertakes research projects

67
encompassing the entire spectrum of iron & steel starting procedures/policies of the Company and suggests
from raw materials to finished products. In the year 2023-24, meaningful and useful improvements. It helps Management
49 R&D projects were completed with substantial benefits to to accomplish its objectives by bringing a systematic and
the Company. disciplined approach to improve the effectiveness of risk
RDCIS also pursues pioneering work in the area of management towards good corporate governance.
development of niche products as per market requirements The Company is constantly taking measures to make the
aiming at superior performance based on application. Internal Audit function more effective. The Internal Audit
During the year 2023-24, twenty four products have been is subject to overall control environment supervised by
developed and some of the noteworthy products along with Board Level Audit Committee, providing independence
the manufacturing Plant include IS 2062 E450 High Strength to the Internal Audit function, emphasizing transparency
Structural (DSP); IS 7904 High Carbon Wire Rod (HC38 to in the systems and internal controls with appropriate skill-
HC80 (BSP); Ultra low Nb slabs for Inter Plant Transfer to mix of internal audit personnel, etc. Audit Plan based on
SSP, (HR Coils of E350 grade rolled at SSP) (BSP); HSFQ 550 identification of key-risk areas with thrust on system/process
grade & SAILFORMING 410/ 450 (RSP); API X70 HR Coil (RSP); audits and benchmarking of the best practices followed in
IS15914 HS345 2.2 mm HR Coil (RSP); ASTM A516 Gr. 60/70 the Plants/Units, is made and approved by Audit Committee
HR Coils (RSP); HRC 2.0-2.5 mm in E350 BR and HRC 1.6-1.8 of the Board so as to achieve Cost Saving and Revenue
mm in 250BR (RSP); HDG 0.35 mm GSM 80 (BSL); IS 5986 Generation, Review of Inventory and Idle Assets, Systems
ISH490S > 5 mm (BSL); and IS 2062 E350 ULNb HR Coils (BSL). Improvement, Compliance with Policies and Procedures,
In its pursuit for excellence in various research fields, RDCIS etc. Training and development of Internal Audit Executives,
enters into collaboration mode of research in specific areas bringing awareness amongst auditees, converging on the
with renowned research institutions and academia. pro-active role of internal audit remained other focus areas
The efforts of RDCIS engineers and scientists have culminated during the year. The Audit Committee in its meetings with
in filing of 17 patents and 13 copyrights (in association with the Company’s Statutory Auditors also ascertains their views
SAIL Plants) during 2023-24. As many as 76 technical papers on the adequacy of internal control systems in the Company
were presented in seminars/symposia/conferences and 65 and their observations on financial reports.
papers were published in prestigious journals. The Internal Audit system is supplemented by well-
K. INTERNAL CONTROL SYSTEMS & THEIR documented Policies, Guidelines and Procedures and
ADEQUACY regular reviews are being carried out by the Internal
Audit Department. The reports containing Significant
The Company has adequate and efficient Internal Control Audit Findings along with settlement/updated status are
Systems for achieving the following business objectives of periodically submitted to the Management and Audit
the Company: Committee of the Board.
CAUTIONARY STATEMENT
Certain statements in the Management Discussion and
Analysis, describing the Company’s objective, projections
and estimates are forward looking statements and
progressive within the meaning of applicable Laws and
Regulations. Actual results may vary from those expressed or
In SAIL, Internal Audit is a multi-disciplinary function implied, depending upon economic conditions, Government
which reviews, evaluates and appraises various systems, Policies and other incidental factors.

68
69
 STEEL AUTHORITY OF INDIA LIMITED
Standalone Balance Sheet
As at 31st March, 2024 (` crore)
Note As at As at
No. 31st March, 2024 31st March, 2023
ASSETS
Non-current assets
(a) Property, plant and equipment 4 65396.59 67091.46
(b) Capital work-in-progress 5 6140.57 4891.36
(c) Right of use assets 4a 5521.17 4910.24
(d) Investment property 6 0.99 1.03
(e) Other intangible assets 7 1488.84 1521.02
(f ) Inventories 7a 4625.29 4635.29
(g) Financial assets
(i) Investments 8 1694.07 1672.67
(ii) Trade receivables 9 - -
(iii) Loans 10 877.30 655.19
(iv) Other financial assets 11 444.24 370.01
(h) Income tax assets (net) 13 374.70 595.41
(i) Other non-current assets 14 3086.55 3612.02
89650.31 89955.70
Current Assets
(a) Inventories 15 32645.58 27716.27
(b) Financial assets
(i) Trade receivables 16 8308.72 5362.48
(ii) Cash and cash equivalents 17 (i) 13.73 6.44
(iii) Bank balances other than (ii) above 17 (ii) 527.87 391.51
(iv) Loans 18 28.31 35.29
(v) Other financial assets 19 1368.66 1229.32
(c) Income tax assets 433.11 -
(d) Other current assets 20 4541.05 2988.70
47867.03 37730.01
Assets classified as held for sale 21 15.11 29.28
TOTAL ASSETS 137532.45 127714.99
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 22 4130.53 4130.53
(b) Other equity 23 50000.01 48008.65
54130.54 52139.18
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 24 9568.21 6112.58
(ia) Lease liabilities 5235.24 4737.11
(ii) Trade payables 25
(a) total outstanding dues of micro enterprises
and small enterprises - -
(b) total outstanding dues of creditors other
than micro enterprises and small enterprises - -
(iii) Other financial liabilities 26 1410.52 1389.66
(b) Provisions 27 5723.77 5603.61
(c) Deferred tax liabilities (net) 12 6178.20 5747.17
(d) Other non-current liabilities 28 1860.49 2680.21
29976.43 26270.34
Current liabilities
(a) Financial liabilities
(i) Borrowings 29 21025.11 19549.20
(ia) Lease liabilities 486.41 374.50
(ii) Trade payables 30
(a) total outstanding dues of micro enterprises
and small enterprises 498.06 448.62
(b) total outstanding dues of creditors other
than micro enterprises and small enterprises 14834.33 13890.25
(iii) Other financial liabilities 31 10517.18 10130.61
(b) Other current liabilities 32 4565.19 3533.01
(c) Provisions 33 1290.37 1379.28
(d) Current tax liabilities (net) 34 208.83 -
53425.48 49305.47
TOTAL EQUITY AND LIABILITIES 137532.45 127714.99
Material accounting policies 3
The accompanying notes are an integral part of these standalone financial statements.
For and on behalf of the Board of Directors
[M.B. Balakrishnan] [Amarendu Prakash]
Company Secretary Chairman
M. No. A17770 DIN: 08896653
In terms of our report of even date
For Walker Chandiok & Co LLP For J N Gupta & Co LLP For S P A R K & Associates Chartered For Vinod Singhal & Co LLP
Chartered Accountants Chartered Accountants Accountants LLP Chartered Accountants
Firm Registration No.001076N/N500013 Firm Registration No.006569C/W100892 Chartered Accountants Firm Registration No.
Firm Registration No.005313C/C400311 005826C/C400276
[Nalin Jain] [Devendra Upadhyay] [Nilesh Gupta] [Vinod Kumar Singhal]
Partner Partner Partner Partner
M. No. 503498 M. No. 076727 M. No. 406020 M. No. 074391
Place : New Delhi
Dated : May 20, 2024
70
 STEEL AUTHORITY OF INDIA LIMITED
Standalone Statement of Profit and Loss
For the year ended 31st March, 2024
(` crore)
Note Year ended Year ended
No. 31st March, 2024 31st March, 2023
Income
Revenue from operations 35 105374.59 104447.36
Other income 36 1148.06 1354.84
Total Income 106522.65 105802.20
Expenses
Cost of materials consumed 37 57618.84 62091.10
Changes in inventories of finished goods, work in progress and by-products 38 (3352.92) (5160.14)
Employee benefits expense 39 11747.92 12053.62
Finance costs 40 2473.81 2037.47
Depreciation and amortisation expense 5277.45 4962.52
Other expenses 41 28229.04 27438.71
Total expenses 101994.14 103423.28
Profit before Exceptional items and tax 4528.51 2378.92
Add/(Less): Exceptional items 41a (840.84) 257.99
Profit before tax 3687.67 2636.91
Tax expense
Current tax 605.54 118.37
Deferred tax 349.02 615.47
Total tax expense 954.56 733.84
Profit for the year 2733.11 1903.07
Other Comprehensive income
A (i) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans (196.62) (633.77)
Gain and losses from investments in equity instruments designated at fair value through OCI 73.90 66.94
(ii) Income tax relating to items that will not be reclassified to profit or loss 0.55 128.22
Other Comprehensive Income/(Loss) for the year (122.17) (438.61)
Total Comprehensive Income for the year 2610.94 1464.46
Earnings per equity share
Number of equity shares (face value ₹10/- each) 4130525289 4130525289
Basic and diluted earnings per share (₹) 41b 6.62 4.61
Material accounting policies 3
The accompanying notes are an integral part of these standalone financial statements.

For and on behalf of the Board of Directors

[M.B. Balakrishnan] [Amarendu Prakash]

Company Secretary Chairman
M. No. A17770 DIN: 08896653
In terms of our report of even date

For Walker Chandiok & Co LLP For J N Gupta & Co LLP For S P A R K & Associates Chartered For Vinod Singhal & Co LLP
Chartered Accountants Chartered Accountants Accountants LLP Chartered Accountants
Firm Registration No.001076N/N500013 Firm Registration No.006569C/W100892 Chartered Accountants Firm Registration No.
Firm Registration No.005313C/C400311 005826C/C400276
[Nalin Jain] [Devendra Upadhyay] [Nilesh Gupta] [Vinod Kumar Singhal]
Partner Partner Partner Partner
M. No. 503498 M. No. 076727 M. No. 406020 M. No. 074391

Place : New Delhi

Dated : May 20, 2024

71
 STEEL AUTHORITY OF INDIA LIMITED
Standalone Statement of changes in equity
For the year ended 31st March, 2024

A. Equity Share Capital (` crore)

Particulars Balance as at Changes in equity Balance as at
1st April, 2023 share capital 31st March, 2024
Equity shares with voting rights 4130.42 - 4130.42
Equity shares without voting rights 0.11 - 0.11
Total 4130.53 - 4130.53
Particulars Balance as at Changes in equity Balance as at
1st April, 2022 share capital 31st March, 2023
Equity shares with voting rights 4130.42 - 4130.42
Equity shares without voting rights 0.11 - 0.11
Total 4130.53 - 4130.53

B. Other Equity
Reserves and Surplus Other comprehensive
Income - Reserve
Particulars Capital Securities General Bond Retained Equity Instruments Total
Reserve Premium Reserve Redemption Earnings through Other
Reserve Comprehensive Income
Balance as at 1st April, 2023 1.75 235.10 5095.13 373.71 42150.48 152.48 48008.65
Profit for the year - - - - 2733.11 - 2733.11
Other comprehensive income/(loss) for the year (net of tax) - - - - (179.16) 56.99 (122.17)
Total comprehensive income for the year - - - - 2553.95 56.99 2610.94
Transfer from bond redemption reserve - - - (249.93) 249.93 - -
Equity dividend - - - - (619.58) - (619.58)
Balance as at 31st March, 2024 1.75 235.10 5095.13 123.78 44334.78 209.47 50000.01
Balance as at 1st April, 2022 1.75 235.10 5095.13 530.97 41922.80 100.86 47886.61
Profit for the year - - - - 1903.07 - 1903.07
Other comprehensive income/(loss) for the year (net of tax) - - - - (490.23) 51.62 (438.61)
Total comprehensive income for the year - - - - 1412.84 51.62 1464.46
Transfer from bond redemption reserve - - - (157.26) 157.26 - -
Equity dividend - - - - (1342.42) - (1342.42)
Balance as at 31st March, 2023 1.75 235.10 5095.13 373.71 42150.48 152.48 48008.65

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

For and on behalf of the Board of Directors

[M.B. Balakrishnan] [Amarendu Prakash]

Company Secretary Chairman
M. No. A17770 DIN: 08896653
In terms of our report of even date

For Walker Chandiok & Co LLP For J N Gupta & Co LLP For S P A R K & Associates Chartered For Vinod Singhal & Co LLP
Chartered Accountants Chartered Accountants Accountants LLP Chartered Accountants
Firm Registration No.001076N/N500013 Firm Registration No.006569C/W100892 Chartered Accountants Firm Registration No.
Firm Registration No.005313C/C400311 005826C/C400276
[Nalin Jain] [Devendra Upadhyay] [Nilesh Gupta] [Vinod Kumar Singhal]
Partner Partner Partner Partner
M. No. 503498 M. No. 076727 M. No. 406020 M. No. 074391

Place : New Delhi

Dated : May 20, 2024

72
 STEEL AUTHORITY OF INDIA LIMITED
Standalone Cash Flow Statement
(` crore)
For the Year ended For the Year ended
31st March, 2024 31st March, 2023
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax 3687.67 2636.91
Adjustments for:
Depreciation and amortisation expenses 5277.45 4953.42
Impairment loss - 9.10
Gain on disposal of fixed assets (net) (130.00) (49.50)
Interest income (306.45) (282.09)
Dividend income (168.81) (419.64)
Finance costs 2473.81 2037.47
Allowance for doubtful debts, loans and advances 62.90 115.16
Other allowances 148.67 237.64
Unclaimed balances and excess allowances written back (328.85) (403.00)
Operating Profit before working capital changes 10716.39 8835.47
Changes in assets and liabilities:
Trade receivables (2979.91) (724.29)
Loans, other financial assets and other assets (1501.21) (887.67)
Trade payable 993.52 (2333.67)
Other financial liabilities and other liabilities 974.11 (1301.58)
Provisions (165.37) (152.37)
Inventories (5010.90) (8422.78)
Cash flow from operating activities post working capital changes 3026.63 (4986.89)
Income tax paid (net) (93.44) (419.60)
Net cash generated/(used) in operating activities (A) 2933.19 (5406.49)
B CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant & equipment (including capital work-in-progress) and intangibles (4863.09) (4314.51)
Proceeds from sale/disposal of property, plant & equipment 502.85 399.55
Movement in fixed deposits (net) (280.94) (20.31)
Interest received 192.11 282.09
Dividend received 168.81 419.64
Net cash used in investing activities (B) (4280.26) (3233.54)
C CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings 5000.00 -
Repayment of long-term borrowings (2494.93) (1278.57)
Proceeds/(repayment) of short-term borrowings (net) 2426.47 13554.70
Lease liabilities (801.03) (267.04)
Finance cost paid (2156.57) (2079.96)
Dividend paid (619.58) (1342.42)
Net cash generated in financing activities (C) 1354.36 8586.71
D Net change in cash and cash equivalents (A+B+C) 7.29 (53.32)
Cash and cash equivalents at the beginning of the year 6.44 59.76
Cash and cash equivalents at the end of the year* 13.73 6.44
* Includes balance with banks in current accounts, cheques in hand and stamps in hand.
Borrowings include non cash item on account of foreign exchange loss of ₹ 1.72 crores (previous year - ₹ 18.71 crore).
The cash flow statement has been prepared using 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 the Board of Directors

[M.B. Balakrishnan] [Amarendu Prakash]

Company Secretary Chairman
M. No. A17770 DIN: 08896653
In terms of our report of even date

For Walker Chandiok & Co LLP For J N Gupta & Co LLP For S P A R K & Associates Chartered For Vinod Singhal & Co LLP
Chartered Accountants Chartered Accountants Accountants LLP Chartered Accountants
Firm Registration No.001076N/N500013 Firm Registration No.006569C/W100892 Chartered Accountants Firm Registration No.
Firm Registration No.005313C/C400311 005826C/C400276
[Nalin Jain] [Devendra Upadhyay] [Nilesh Gupta] [Vinod Kumar Singhal]
Partner Partner Partner Partner
M. No. 503498 M. No. 076727 M. No. 406020 M. No. 074391

Place : New Delhi

Dated : May 20, 2024

73
Notes to Standalone Financial Statements for the Year ended 31st March, 2024
1. Corporate and General Information and the accompanying disclosures as at the date of
Steel Authority of India Limited (hereinafter referred the financial statements. The judgements, estimates
to as “the Company”), a Public Sector Undertaking, is and underlying assumptions are reviewed on an
domiciled and incorporated in India. The Company, ongoing basis. Revisions to accounting estimates are
conferred with Maharatna status by Government recognised prospectively. Actual results could differ
of India, is one of the largest steel producers in from those estimates.
the country. The registered office of the Company 2.5 Current versus Non-current classification
is situated at Ispat Bhawan, Lodhi Road, New
The Company presents assets and liabilities in
Delhi-110003. The securities of the Company are
the balance sheet based on current/ non-current
listed on the National Stock Exchange of India
classification. An asset is classified as current when it
Limited, BSE Limited and London Stock Exchange plc.
is:
These standalone financial statements (the ‘financial
statements’) for the year ended 31st March, 2024 were
or consumed in the Company’s normal operating
approved by the Board of Directors and authorised
cycle;
for issue in their meeting held on 20th May, 2024. The
Company has also prepared consolidated financial
statements for the year ended 31st March, 2024 in
accordance with Ind AS 110 and the same were also
after the reporting period; or
authorised for issue by the Board of Directors on
20th May, 2024.
being exchanged or used to settle a liability for at
2. Basis of Preparation
least twelve months after the reporting period.
2.1 Statement of Compliance
All other assets are classified as non-current.
The financial statements of the Company have
A liability is classified as current when:
been prepared on accrual basis of accounting in
accordance with the Indian Accounting Standards
(Ind AS) prescribed under Section 133 of the normal operating cycle;
Companies Act, 2013, read with Companies (Indian
Accounting Standards) Rules, 2015 (as amended)
and other accounting principles generally accepted
in India. The company has uniformly applied the the reporting period; or
accounting policies during the periods presented.
2.2 Basis of Measurement settlement of the liability for at least twelve
months after the reporting period.
The financial statements are prepared on a historical
cost basis except for the following assets and All other liabilities are classified as non-current.
liabilities which have been measured at fair value in The operating cycle is the time between the
accordance with the requirements of the relevant Ind acquisition of assets for processing and their
AS: realisation in cash and cash equivalents. Deferred
tax assets and liabilities are classified as non-current
classified at fair value through profit and loss or only.
fair value through other comprehensive income; 3 MATERIAL ACCOUNTING POLICY INFORMATION
A summary of the material accounting policies
amounts and fair value less cost to sell; applied in the preparation of the financial statements
is given below. These accounting policies have been
applied consistently to all the periods presented in
2.3 Functional and Presentation Currency the financial statements.
The financial statements have been presented in 3.1 Property, Plant and Equipment
Indian Rupees (₹), which is the Company’s functional
currency. All financial information presented in 3.1.1 Recognition and Measurement
₹ have been rounded off to the nearest two decimals The Company has elected to continue with the
of Crore unless otherwise stated. carrying value of its Property Plant & Equipment
2.4 Use of estimates, assumptions and judgements (PPE) recognised as on April 1, 2015 (transition date)
measured as per the Previous GAAP and used that
In preparing the financial statements in conformity carrying value as its deemed cost as on the transition
with Ind AS and company’s accounting policies, date as per Para D7AA of Ind AS 101.
management is required to make estimates,
assumptions and judgements that affect reported An item of property, plant and equipment is
amounts of revenues, expenses, assets and liabilities recognised as an asset if it is probable that future

74
economic benefits associated with the item will by the contractor to the company for the asset
flow to the Company and its cost can be measured under construction. Liquidated damages represent
reliably. This recognition principle is applied to costs compensation for a reasonable estimate of the
incurred initially to acquire an item of property, plant companies cost associated with a delay or less than
and equipment. Property, plant and equipment held expected performance.
for use in the production or/and supply of goods or
The payments received by the company from the
services, or for administrative purposes, are stated at
contractor is presumed to be a reduction of the
cost, less accumulated depreciation and impairment
cost of the asset being constructed, to the extent
losses, if any, The initial cost at cash price equivalence
liquidated damages are reimbursements of direct
of property, plant and equipment acquired comprises
and incremental costs incurred by the company as
its purchase price, including import duties, non-
a result of the contractor’s breach is credited to the
refundable purchase taxes, any directly attributable
asset.
costs of bringing the assets to its working condition
and location and present value of any obligatory In cases other than above, the claim for liquidation
decommissioning costs for its intended use. damages are credited to statement of profit and loss.
In case of constructed assets, cost includes the Suppliers’ and Contractors’ claims for price escalation
costs of all materials used in construction, direct are accounted for to the extent such claims are
labour, allocation of overheads, directly attributable accepted by the Company.
borrowing costs. 3.1.2 Subsequent Cost
The excess of net sale proceeds of items produced Subsequent expenditure is recognised as an increase
during testing over the cost of testing, if any, shall in the carrying amount of the asset or recognised
be deducted from the directly attributable costs as a separate asset, as appropriate, only when it is
considered as part of cost of an item of property, probable that future economic benefits derived
plant, and equipment. from the cost incurred will flow to the Company and
Spares having useful life of more than one year the cost of the item can be measured reliably. The
and having value of ` 10 lakh or more in each case, carrying amount of replaced item(s) is derecognised.
are capitalised under the respective heads as and Any repair of `50 lakh or more of property, plant and
when available for use. Where an item of property, equipment is recognised in the carrying amount of
plant and equipment comprises major components the respective item if it is probable that the future
having different useful lives, these components are economic benefits of the costs incurred will flow to
accounted for as separate items. the Company. The carrying amount of the replaced
item(s) is derecognised.
Capital work-in-progress comprises of assets in the
course of construction for production and/ or supply 3.2 Depreciation
of goods or services or administrative purposes are Depreciation on property, plant and equipment and
carried at cost less any recognised impairment loss. investment property is provided on straight line
At the point when an asset is operating as intended method, considering residual value of 5% of the
by the management, the cost of construction is cost of the asset, over the useful lives of the asset, as
transferred to the appropriate category of property, specified in Schedule-II of the Companies Act, 2013
plant and equipment. Costs associated with the except in case of following category of assets, where
commissioning of an asset are capitalised where useful life is determined by technical experts. The
the asset is available for use as intended by the useful life estimated by the technical experts is as
management. under:
An item of property, plant and equipment is
Asset category Estimated useful life
derecognised upon disposal or when no future
(in years)
economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising Factory Buildings 35 to 40
on the disposal or retirement of an item of property, Plant and Machinery 10 to 40
plant and equipment is determined as the difference
Water Supply & Sewerage 25 to 40
between net disposal proceeds and the carrying
amount of the asset and is recognised in the Railway Lines & Sidings 35 to 40
Statement of Profit and Loss.
For these classes of assets, based on technical
Claims for liquidated damages are accounted for as evaluation carried out by external technical experts,
and when these are considered recoverable by the the Company believes that the useful lives as given
Company. above best represent the period over which Company
expects to use these assets. Hence, the useful lives
In the event that construction is not completed by
for these assets are different from the useful lives
an agreed upon date, or if the asset does not meet
as prescribed under Part C of Schedule-II of the
certain performance or other requirements outlined
Companies Act 2013.
in the contract, certain construction agreements
provide for the payment of liquidated damages Freehold land is not depreciated.

75